Profit Growth Grounded In Canada's Aerospace Industry | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 07.25.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.25.14 **
** Airborne 07.23.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.23.14 **
** Airborne 07.21.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.21.14 **

Mon, Dec 17, 2012

Profit Growth Grounded In Canada's Aerospace Industry

Economic Conditions Expected To Push The Bottom Line Down In 2013

A slowdown in new orders earlier this year and the ongoing global economic uncertainty are pushing profit levels down in Canada's aerospace product manufacturing industry in 2012 and likely will again in 2013, according to The Conference Board of Canada's Autumn edition of its Industrial Outlook. Industry profits have been on a turbulent ride since the 2008-09 recession.  After reaching a recent high of $710 million in 2010, profits fell in 2011 and are projected to dip again in 2012 and 2013. At the end of next year, profits are expected to be slightly more than $500 million - a decline of 30 per cent since 2010.

"The aerospace industry is still coping with the lingering effects of the 2008-09 recession," said Maxim Armstrong , Senior Economist. "And while new orders indicate that the industry is showing signs of recovery, the financial turmoil in Europe is creating uncertainty and making the comeback difficult. Growth in global demand for air transportation can currently be described as modest at best, which is delaying the need to expand capacities or to replace existing aircraft worldwide."

The outlook mirrors global economic trends, with modest growth this year and next, followed by progressive improvement in the later years of the five-year forecast. U.S. economic growth remains slow, but American companies have improved their financial position - which is expected to lead to increased demand for business jets.

The improved outlook in 2015 and beyond will coincide with the anticipated arrival of Bombardier's CSeries jets on the market. The CSeries development fueled industry growth in research and development in recent years.

(Image of CSeries aircraft provided by Bombardier)

FMI: www.conferenceboard.ca/e-library/abstract.aspx?did=5250

Advertisement

More News

EAA AirVenture 2014 Welcomes The Boldest Human Space Mission Yet

Events To Highlight Industry Collaboration For Reaching The Planet Mars Leaders from the aerospace community held a press conference at EAA AirVenture on Monday to get the word out>[...]

Aspen Avionics, True Innovators, Present Oshkosh 2014 Special Event Coverage!

OSH2014 Sponsor: Aspen Avionics Aspen Avionics specializes in bringing the most advanced technology and capability into general aviation cockpits. Our products increase situational>[...]

Futuristic OSH2014 Sponsor: 'Beyond The Blue' - The Inside Story Of The XPRIZE

Meet Jim Campbell, TODAY/07.28, At EAA Wearhouse, Author's Corner, At 1500 And Get Your Signed Copy of Beyond The Blue!!! To Aviation Journalist and experienced Test Pilot, Jim Cam>[...]

Ready For Service... ConciAir Helps Present OSH2014!

ConciAir Is Here To Return Our Industry To Service! The name ConciAir is a play on the word "concierge", and our goal is to be able to accomplish any task placed before us in a tim>[...]

OSH2014 Sponsor: Eclipse Aerospace -- In Full Production!

The Eclipse 550: Economical. Efficient. Incredible. The Eclipse 550 not only has the lowest acquisition cost of any twin-engine jet on the planet, it also has the lowest operating >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC