The global aerospace industry has been preparing for an upturn from the second half of 2021 onwards, fuelled by covid restrictions loosening.
The 2020 period saw the worst downturn since the start of aerospace travel. International flights were most heavily impacted with a 68% drop, whilst domestic flights suffered a 40% drop.
As travel restrictions lessen, commercial airlines are experiencing a major surge in demand but find themselves lacking the resources to supply due to restrictions on capacity. Industry experts are calling on airlines to invest in larger planes to handle this increasing demand.
When the pandemic hit, aerospace manufacturing unsurprisingly suffered. Manufacturers globally experienced a 30%-50% drop in sales dependent on their customer portfolio, and some manufacturers with a larger share of the commercial aerospace market saw between a 60%-70% drop.
Reports suggest that it could take up to 3 years for airlines, and aerospace manufacturers, to fully recover from the losses made as a result of the pandemic.
As the industry rallies for recovery, the next four to five years will see significant transformation across the supply chain, technology development and in the way we fly and transport goods by air. One such change is that manufacturers and suppliers are preparing for the first ramp-up in production of single-aisle aircraft.
It is anticipated that there will be on average an 11% increase in revenue across the supply chain compared with 2020, with most suppliers who suffered losses expecting to return to positive profits this year.
Recovery is expected to strengthen in 2022, signalling more consolidation and more research and development (R&D) spending to mature the necessary technology for the next generation aircraft program planned for 2025.
To learn more, read the full article here: https://www.forbes.com/sites/forbesbusinesscouncil/2021/06/17/the-aerospace-industry-is-preparing-for-an-upturn/?sh=56d0da1a192a
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