Aviation News Item: 00823

28th Apr 2009

Source: ubmaviationnews.com

A downturn in the future aerospace materials market can be directly attributed to the economic downturn. According to AeroStrategy, aircraft production is declining as a result of the global recession and the financial crisis and the business and general aviation sector will be hit the hardest. The air transport sector accounts for 68 per cent of raw material demand. Total aerospace material "buy weight" was 950 million lbs in 2008; 45 per cent was aluminum. Underlying demand for several key metals will decline 10-13 per cent compared to the recent production peak. This does not factor in the impact of inventory overhang (estimated at 12 months or more for some key materials) and reduction throughout the aerospace supply chain, which could result in a significantly greater reduction in demand for some suppliers in the near term. Total raw material demand is projected to increase at a 4.5 per cent CAGR through 2019; with titanium and composites growing the fastest.

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