Aerospace Raw Materials Demand Hit by Recession

June 17, 2009 --[ASDWire]-- A recent update to the Aerospace Raw Material Forecast first published last year by AeroStrategy shows a significant decrease in aerospace raw materials demand directly as a result of the industry recession:

• Total aerospace raw material “buy weight” for all market sectors is 950 million pounds; 45% is aluminum; 23% steel alloys; 11% nickel alloys; 11% titanium; 6% other metals; 4% composites
• The air transport sector accounts for 68% of raw material demand; military fixed wing 13%, business & general aviation 13%; rotary wing 6%
• Underlying demand for several key metals will decline 10-13% compared to the recent production peak; this does not factor in the impact of inventory de-stocking throughout the supply chain, which could result in a significantly greater reduction in demand (30% or more) for some suppliers in the near term.
• Total raw material demand is projected to increase at a 4.5% CAGR through 2019; titanium and composites will grow the fastest

A summary of findings is available on the AeroStrategy website and can be downloaded at AeroStrategy’s website.

AeroStrategy is a premier management consulting firm specializing in strategy and market analysis for the aviation and aerospace industries. The firm has offices in Europe, Asia and North America.