OTTAWA, Nov. 14 /CNW Telbec/ - Following two years of growth, profits in
Canada's aerospace industry are expected to dip in 2007, before steadily
improving next year, according to the Conference Board's Canadian Industrial
Outlook: Canada's Aerospace Product Manufacturing Industry: Autumn 2007.
"The strong Canadian dollar and new competitors entering the global
market are driving down prices, lowering industry profits to $389 million this
year," said Valérie Poulin, Economist. "Starting in 2008, profits are expected
to bounce back on healthy production increases from soaring worldwide demand
for business jets."
Business jets-those purchased for private use-and their related
components are expected to be the main driver of growth in Canada's aerospace
industry over the next four years. Canada's regional jet production-aircraft
purchased by commercial airlines-continues to show modest growth due to global
competition and weaker demand.
Profit margins will be thin by historical standards, averaging
4.1 per cent over the next 4 years, well below the double-digit margins
achieved in 2000 and 2001.
This is the first release of the Conference Board's new Canadian
Industrial Outlook: Canada's Aerospace Product Manufacturing Industry,
published twice a year.
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