The Global market for planes, weaponry and all things airborne has enjoyed a strong post-COVID recovery. Boeing and Airbus have seen deliveries jump 16% year on year to 659 completed and delivered aircraft.
However, a few dark clouds continue to linger over the outlook for this global industry. New research from market analysts Plimsoll, has rated 253 of the world’s 800 leading aerospace companies as “Danger” and external factors could have an outsized impact on profitability and competitiveness in 2023.
Please click here for more information on Plimsoll’s latest analysis of the Global Aerospace market.
Material supply shortages continue to cut deep into the global market. The titanium supply crisis continues as the war in Ukraine caps much of the import of this important material. With Airbus reported to rely on Russian-based companies such as VSMPO-AVISMA, for 65% of its titanium, how long can this supply crunch persist? Other raw material shortages such as castings and semiconductor chips continue to drive up costs and depress margins.
Elsewhere, the demand for qualified engineering and assembly staff throughout the supply chain is preventing aerospace companies from keeping up with booming demand. Sourcing specialist castings from the US is being held up by a dearth of skilled welding professionals. Building engines for planes is flagged as the most pressing issue, with Airbus lumbered with 26 completed A320 aircraft that they can’t deliver for lack of available engines.
All of these shortages are taking the shine off what should be a golden growth period in the aerospace sector. Travel restrictions have been almost completely lifted in most major travel markets. Demand is soaring for both commercial and military hardware.
Plimsoll’s latest analysis of the Global aerospace market, shows average company values are up 4% in the latest year. Having valued each of the world’s 800 leading aerospace companies, there are regions that have prospered and those that have suffered. Based on our latest assessment of profits, performance and valuation by region, we can reveal:
| Region |
Average sales per employee |
% Change On Average Value |
Average sales growth |
| Belgium |
US$218,000 |
22% |
3.9% |
| German |
US$176,000 |
-10% |
-4.9% |
| American |
US$333,000 |
3% |
6.2% |
| European |
US$192,000 |
3% |
-4.8% |
| Global |
US$228,000 |
4% |
-4.3% |
| Indian |
US$171,000 |
-5% |
0.8% |
| French |
US$195,000 |
22% |
-3.7% |
| Nordic |
US$232,000 |
-20% |
6.6% |
| British |
US$136,000 |
-29% |
-11.8% |
The British Aerospace industry, long the jewel in the nation's engineering crown is beginning to look rather anaemic amid the current global economic conditions. Brexit meant a loss of access to EU-funded research projects and a new, cumbersome bureaucracy. Figures from industry trade body ADS show Britain’s aerospace activities generated a turnover in the latest year 37 per cent lower than that recorded just before the coronavirus crisis. Plimsoll’s latest assessment of the UK market shows values falling sharply, productivity the worst among its international peers and growth continuing to fall.
However, the sharp decline in sterling has seen a spree of takeovers from overseas companies looking to buy up British expertise and trademarks. Meggit, Ultra and Pearson Engineering have all recently been bought out by foreign buyers. While assurances have been made about retaining expertise and production in Britain, there are growing concerns that innovations in areas such as hydrogen and electricity could be lost to foreign entities.
Elsewhere, US aerospace companies continue to outperform their peers from across the rest of the world. Continuously the most productive across the global market with an average of US$333,000 sales per employee, US companies significantly outperform their European peers. Only the Nordic region, with increasingly concerned glances toward Russia, can come close to the growth achieved by US companies.
The global aerospace market continues to be shaped by external factors, but demand remains strong. Some, like the increasingly desperate conflict in Ukraine, will hopefully soon pass. Others, like the increased focus on greener aviation, away from fossil fuels could lead to a new, golden age for the sector. Which countries will fare best? Will the US continue to dominate as China continues to expand its own aerospace industry? Which companies will endure? Whatever the outcome, the market looks set for further turbulence. Plimsoll can ensure that you are prepared.
The latest Plimsoll Analysis is our most important study of the aerospace market to date. To help you navigate the current crises enveloping the market, and see who is likely to endure and who might fail, we have assessed each of the world’s leading aerospace companies in fine detail. Using our unique graphical assessment we provide in-depth but easy-to-digest analysis so you can focus on making decisions to guide your own business through the next few years.
Please click here for more information on Plimsoll’s latest analysis of the Global Aerospace market.