Canadian Industrial Outlook: Aerospace—February 2020
The Conference Board of Canada, 10 pages
February 6, 2020
This report examines the short-and medium-term economic and profitability outlook for Canada’s aerospace industry.
- Slow global economy—The U.S.–China trade war and Brexit have caused global economic activity to slow and business confidence to fall. Consequently, growth in both passenger and freight traffic has weakened in recent months, which will weigh on demand for new aircraft in the future.
- Backlog orders at an all-time high—The volume of backlog orders reached an all-time high in 2019, with an unprecedented number of aircraft deliveries expected in 2020. However, given the weakening global economy, airlines may face an overcapacity problem later this year, which could weigh on aircraft demand in the medium term.
- Defence spending provides stability—With rising geopolitical tensions, defence spending has reached a historical high. Defence spending is a major driver behind demand for the aerospace industry, and will continue to support the industry in the future despite headwinds of a slowing global economy.