Aircraft, Engine & Parts Manufacturing in the US

Industry Hits Turbulence

Industry product orders will continue to get canceled in the wake of the current economic uncertainty; however, this is not expected to be widespread given the superiority of current technology in new aircraft and the benefits available to airlines across the globe. The fuel price crisis experienced in the majority of 2008 saw many airlines retire older, less fuel efficient aircraft. In doing so, airlines have effectively cemented their requirement for new aircraft in order to expand future capacity. This has also given Boeing a sense of operational confidence in the size of their outstanding order book. Manufactures will experience an overwhelmingly stronger number of continued orders compared to cancellations; airlines will look ahead in the future rather than concentrating on the current situation, and continue to invest in newer and better aircraft.

This industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing complete aircraft; (2) manufacturing aircraft engines, propulsion units, auxiliary equipment or parts; (3) developing and making prototypes of aircraft; (4) aircraft conversions (i.e., major modification to systems); and (5) complete aircraft overhaul and rebuilding (i.e., periodic restoration of aircraft to original design specifications).