Commercial air travel is expected to make a slow recovery according to a recent Deloitte Aerospace and Defense Industry Outlook report which stated passenger traffic dropped 73 percent in 2020 while capacity levels declined 63 percent. In fact, despite an effective COVID-19 vaccine, passenger traffic isn’t expected to rebound before 2024. As a result, commercial aircraft order backlogs are down as well as rotorcrafts. New orders will likely lag, but according to Deloitte, the changing climate could boost higher demand for narrow-body aircraft.
In its’ 2019 Global Aerospace and Defense Industry Outlook Deloitte reported that the aircraft order backlog for the commercial aerospace sector remains at an all-time high due to “demand for next-generation, fuel-efficient aircraft in response to surging oil prices.”
High demand means that manufacturers must ramp up production rates yet Deloitte states that companies will likely “experience supply chain interruptions as some fabricators struggle to keep up.
In spite of supply chain challenges, Airbus, Boeing, and Embraer closed out 2018 with confirmed orders for more than 400 jetliners. Airbus and Boeing delivered record numbers of aircraft and each has racked up seven or more years of production to satisfy a 13,450 airplane backlog.
In terms of the aerospace market, 2019 is proving to be the year of artificial intelligence (AI), augmented and virtual reality (AR/VR), data analytics, advanced sensors and IoT. Data analytics continues to take on a bigger role. Forecasters report that the “amount of data being created by the industry is overwhelming.”
If you're a regular reader, you know we've recently explored the automobile, airplane and medical device markets and the way these manufacturers use CMMs. We've summarized some of those key points as well as some additional information into a new ebook, which we'd like to introduce with this blog. Let's start with the airline industry!
In the market for capital equipment? You’ll want to look at three things before taking the plunge: budget, cash flow and the parts you need to make. It’s equally important to know the markets you support and where they're heading in terms of growth, technology and changes that could impact the way you do business. Let's look at the aerospace industry as an example and the role coordinate measuring machines (CMMs) face in the constant push for faster, streamlined production.