Market Outlook: Composites in General Aviation

One assumption is that aircraft construction is a boom/bust market. But current order backlogs and resulting ramp-ups in production rates indicate that civil aircraft manufacturers are looking ahead with a great deal of confidence. Expected long-term growth in Asian and other developing economies accounts for a large proportion of the recently placed aircraft orders. As a result, many manufacturers already have backlogs amounting to several years of production for popular models. While some observers argue that the aircraft industry, as a result, has entered a “super cycle” or “a bubble,” investment banking advisor Trevor Bohn takes a slightly different view. A vice president at RSM EquiCo Capital Markets, Bohn said at COMPOSITESWORLD Conferences’ 2008 Composites Industry Investment Forum held in February that he preferred to describe the market as “stronger for longer.” With the growing number of aircraft orders and a resulting build up in aircraft delivery backlogs, the market for composite aerostructures in general aviation has been growing rapidly. According to the General Aviation Manufacturers Assn.’s recently released 2007 year-end statistics, the industry grew 16.5 percent to a record $21.9 billion in aircraft shipments, compared to 2006. Read More.