Canada’s Aircraft and Aircraft Parts Industry: Industrial Outlook Summer 2005

Canada’s Aircraft and Aircraft Parts Industry forecasts revenue, costs and profits for the aircraft and aircraft parts industry by analyzing its three key sectors: airframes and structures, propulsion systems, and avionics.

Canada’s aircraft and aircraft parts industry is recovering from several painful years. But although some challenges remain, the situation has improved for aircraft and aircraft parts manufacturers. Overall profits for the aircraft and aircraft parts industry are expected to rebound this year—from $766 million in 2004 to $1,354 million this year. Costs will increase by close to 13 per cent, but revenues will increase by even more, thanks to growth in shipments of 16.2 per cent.

Continued healthy revenue growth, thanks in part to modest price appreciation, is expected to help overall annual profits rise to $2.5 million by 2009, as profit margins stay just above 11 per cent in the medium term, from 2006 to 2009.

The outlook includes special features on Bombardier’s planned CSeries jets and on restructuring in the airline industry that is leading to changes in the aircraft and aircraft parts industry.