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M&A News From the Aviation, Aerospace & Defense Industry

By Joe Contaldo | Nov 18, 2016

Aviation, Aerospace & Defense IndustryWorldwide shipments of general aviation airplanes, a key demand driver for manufacturers of aerospace products and parts, fell 4.5% in the first half of 2016 compared to the same period in 2015, according to the General Aviation Manufacturers Association (GAMA). Among airplane types, turboprops saw the biggest decline in shipments, with a drop of 4.9%, followed by piston planes (off 4.5%), and business jets (down 4.3%). Global rotorcraft shipments declined by 16.1%, led by an 18.3% reduction in turbine helicopter shipments. Piston helicopter shipments decreased by 10.1%. Demand for general aviation aircraft has been dampened by sluggish global economic growth, according to GAMA. The association has also criticized Congress for not moving to streamline the general aviation product certification process as part of the FAA Extension bill in July 2016. GAMA argues that a reformed regulatory environment would bring safer, more innovative products to market faster and reduce manufacturer costs.

  • US durable goods manufacturers’ shipments of military aircraft and parts, an indicator of demand for aerospace products and parts for military use, fell 11.6% year-to-date in August 2016 compared to the same period in 2015.
  • US durable goods manufacturers’ shipments of nondefense aircraft and parts, an indicator of demand for aerospace products and parts, fell 3.9% year-to-date in August 2016 compared to the same period in 2015.
  • US steel mill product prices, an indicator of commodity steel costs for aerospace products, rose 1.1% in September 2016 compared to the same month in 2015.

Posted by Joe Contaldo.

Read the Entire Aviation, Aerospace & Defense M&A 4th Quarter Newsletter Here


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