Aerospace Suppliers Bullish About Orders

Companies in the aviation supply chain are confident that aircraft deliveries will continue to increase over the next two years and that they will win new work with OEMs, according to GE Capital.

Companies in the aviation supply chain are confident that aircraft deliveries will continue to increase over the next two years and that they will win new work with OEMs, according to GE Capital.

The finance house polled a group of 80 representatives working for manufacturers and suppliers, as well as private equity firms operating in the sector, and found that three-quarters expected aircraft deliveries to continue to grow at least until the end of 2016.

More than 90 per cent of those surveyed predicted they will win new long-term supply contracts in the next three years and 84 per cent plan to increase their workforce over the next 12 months.

Meanwhile, 87 per cent said they will be investing in new manufacturing equipment over the next three years, and more than one-third expect to start using additive manufacturing technology in the next five years.

The survey results also revealed expectations of greater consolidation in the sector, with 92 per cent of respondents predicting that mergers and acquisitions will increase over the next 12–24 months

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