Business

October 23, 2013

Forecast International says business jet market gaining traction

Forecast International predicts that manufacturers will build 9,575 business jets during the 10-year period between 2013 and 2022.

The Connecticut-based market research firm estimates the value of this production at $235 billion in constant 2013 U.S. dollars.

Business jet production has declined each year since 2008, when manufacturers produced more than 1,300 business jets.  Production totaled some 670 business jets in 2012 and, according to Forecast International, output will be at slightly below this level in 2013.  However, the company expects production to increase in 2014 (with 708 aircraft forecast to be built that year) and continue to rise steadily each year through 2020.  In 2020, the peak production year of the forecast timeframe, a total of 1,166 business jets is expected to be produced.  A minor cyclical downturn is anticipated for the 2021-2022 timeframe.

The business jet market is finally gaining some traction after suffering through a significant downturn that had its beginnings in the global economic and financial collapse of the second half of 2008.  After 2008, demand for larger business jet models held up fairly well, but demand for small and medium jets was devastated.  More recently, demand for larger jets has further strengthened, while demand for small and midsize models has improved somewhat but remains fragile.

Forecast International does not expect annual business jet production to return to the 2008 level of more than 1,300 aircraft at any time during the 2013-2022 forecast period.  According to Forecast International senior aerospace analyst Raymond Jaworowski, “All signs point to the upcoming recovery in business jet production rates being relatively gradual and measured.  Most market indicators, such as economic growth rates, flight activity, and used inventories, are somewhat mixed.  On the positive side, corporate profits are strong but, amid economic and regulatory uncertainty, corporations are holding onto their money rather than spending it on new assets such as aircraft.  Continuing economic improvement, however sluggish, will help unlock underlying demand in the market.”

At least initially, the recovery is expected to vary considerably in strength from region to region.  Demand is already growing strongly in emerging markets in Asia, Latin America, and Russia.  The large North American market is showing signs of life.  The European market, though, continues to be moribund.

Forecast International’s market forecast indicates that, in terms of unit production, Cessna, Bombardier, and Embraer will be the top three business jet manufacturers during the 2013-2022 time period.  When the market is calculated in terms of the monetary value of production, the top three companies are expected to be Gulfstream, Bombardier and Dassault.




All of this week's top headlines to your email every Friday.


 
 

 

Missile Defense Agency, Raytheon demonstrate SM-6’s new anti-ballistic missile defense capability

In a first-of-its-kind test, the U.S. Navy fired a Raytheon Standard Missile-6, intercepting and destroying a short-range ballistic missile target at sea. The successful U.S. Missile Defense Agency test proved a modified SM-6 can eliminate threat ballistic missiles in their final seconds of flight. “SM-6 is the only missile in the world that can do...
 
 

Northrop Grumman-developed stealthy data link validated as combat ready with U.S. Marine Corps

the U.S. Marine Corps achieving F-35B initial operating capability, the Multifunction Advanced Data Link waveform developed by Northrop Grumman has been proven a key combat-ready capability of the F-35 Lightning II program. MADL is a high-data-rate, directional communications link that allows fifth-generation aircraft to communicate and coordinate tactics covertly. During testing of the Lockhee...
 
 

Lockheed Martin technology helps pilots, UAS operators share data, stay safe

As Unmanned Aircraft Systems take to the skies, it is essential for safety that UAS operators and pilots are aware of each other. To help provide this shared situational awareness, Lockheed Martin has deployed the first components of a UAS traffic management system that is available to the UAS community now. Lockheed Martin’s online Flight...
 

 

Aegis goes four-for-four in weeklong missile test series

The Lockheed Martin, U.S. Navy and Missile Defense Agency’s Aegis Combat System took part in a successful four-event test of the combat systemís air warfare and ballistic missile defense capabilities. The Multi-mission Warfare tests, conducted aboard USS John Paul Jones (DDG 53), began July 28 and ended Aug. 1. The latest iteration of the Aegis...
 
 
Lockheed Martin photograph

Lockheed Martin successfully tests design changes for Orion

A protective panel for Orion’s service module is jettisoned during testing at Lockheed Martin’s Sunnyvale, California facility. This test series evaluated design changes to the spacecraft’s fairing separation system Lockh...
 
 

Australian company to provide parts for initial production of Triton UAS

Northrop Grumman has awarded the first Australian supplier contract for the U.S. Navy’s MQ-4C Triton unmanned aircraft system initial production lot to Ferra Engineering. Brisbane-based Ferra Engineering will manufacture mechanical sub-assemblies for the first four Triton air vehicles including structural components. “At Northrop Grumman it’s very important to not only develop...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>