OTTAWA, Dec. 12, 2012 /CNW/ - A slowdown in new orders earlier this year
and the ongoing global economic uncertainty are pushing profit levels
down in Canada's aerospace product manufacturing industry in 2012 and
again in 2013, according to The Conference Board of Canada's Autumn
edition of its Industrial Outlook.
Industry profits have been on a turbulent ride since the 2008-09
recession. After reaching a recent high of $710 million in 2010,
profits fell in 2011 and are projected to dip again in 2012 and 2013.
At the end of next year, profits are expected to be slightly more than
$500 million - a decline of 30 per cent since 2010.
"The aerospace industry is still coping with the lingering effects of
the 2008-09 recession," said Maxim Armstrong, Senior Economist. "And while new orders indicate that the industry is
showing signs of recovery, the financial turmoil in Europe is creating
uncertainty and making the comeback difficult.
"Growth in global demand for air transportation can currently be
described as modest at best, which is delaying the need to expand
capacities or to replace existing aircraft worldwide."
The outlook mirrors global economic trends, with modest growth this year
and next, followed by progressive improvement in the later years of the
U.S. economic growth remains slow, but American companies have improved
their financial position - which is expected to lead to increased
demand for business jets.
The improved outlook in 2015 and beyond will coincide with the
anticipated arrival of Bombardier's CSeries jets on the market. The
CSeries development fueled industry growth in research and development
in recent years.
Link to publication: http://www.conferenceboard.ca/e-library/abstract.aspx?did=5250
SOURCE: Conference Board of Canada
For further information:
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448