Page 43 - MetalForming July 2019

Market Report:
Aerospace
All systems go for increasing metal forming and fabricating opportunities.
Inside the Boeing 777 factory in Everett, WA. Industry experts expect a strong year for the commercial aircraft industry.
berger, global aerospace and defense leader at Deloitte Consulting, New York, NY, the commercial aircraft backlog stands at 14,000, with production of about 38,000 aircraft expected over the next 20 years. Reasons for the backlog? First, it takes several months to assemble all of the parts and perform all of the tests required for a new aircraft. In addi- tion, while the middle class here con- tinues to get pinched, the middle class in large global markets such as China and India are thriving. Finally, fuel costs remain relatively low, making air travel, especially regional travel in China and Asia, affordable. Affordable air travel means more passengers, and more pas- sengers create a need for more planes. Meanwhile, Lineberger adds that the market for military aircraft, too, remains strong, with such programs as the Department of Defense’s F35 (Lockheed Martin) Lightning II next-gen program joining proven platforms such as the F15 (McDonnell Douglas), F-16 (Lock- heed Martin) and F-18 (McDonnell Douglas), providing systems for the U.S. military and its allies.
All of this signals opportunities for
Unlike automotive, with its easy- to-define and -track vehicle segments and unit sales, aero- space is far different with its many seg- ments and subsegments—commercial (including smaller regional aircraft), military (fighters, transports, etc.), rotorcraft (helicopters), unmanned (drones), satellites... the list goes on.
“Aerospace remains one of the world’s most important industries, yet there is no consensus on its size and composition,” says Richard Aboulafia, vice president of analysis for Teal Group Corp., Fairfax, VA. Nonetheless, Teal Group and AeroDynamic Advisory, Ann Arbor, MI, recently defined the global aerospace industry as “all activities pertaining to the development, pro-
BY JOE JANCSURAK, ASSOCIATE EDITOR
duction, maintenance and support of aircraft and spacecraft. Contained in this definition: aircraft and spacecraft manufacturing, including engines, sys- tems, aero structures and sub-tier sup- pliers; missile and unmanned aerial vehicle (drones) manufacturing, air- borne defense, electronics, aircraft sim- ulators; and maintenance, repair and overhaul, including spare parts and materials.”
Teal and AeroDynamic conclude that these combined activities account for a global aerospace industry worth more than $838 billion. The new-air- craft (commercial and military) market alone, according to Teal Group figures, is worth about $200 billion.
Moreover, according to Robin Line-
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