Aviation Week's Check 6 Podcast Check 6 With Accenture: Why The Commercial Aerospace Outlook Isn’t As Bad As You Think
Oct 9, 2024
John Schmidt, leader of Accenture's Global Aerospace and Defense Practice, shares insights into the commercial aerospace industry's surprising growth. Despite delivery downturns, industry revenues are expected to rise. The Asia-Pacific market has rebounded dramatically, fueled by customer traffic and investment. MRO services are pivotal in enhancing resilience and operational longevity. Challenges like supply chain disruptions and labor unrest are addressed, but optimism prevails due to advancements in digital transformation that promise to overcome these hurdles.
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Revenue Growth
- The commercial aerospace industry's revenue will surpass 2019 levels for the first time since COVID.
- Aftermarket strength, especially in the US and Europe, is driving revenue growth despite fewer deliveries.
Asia-Pacific Growth
- The Asia-Pacific aerospace market has grown significantly compared to North America (54% vs. 3%).
- This is due to the slower post-COVID recovery in Asia and recent developments like Comac's deliveries.
MRO's Importance
- MRO (maintenance, repair, and overhaul) is vital for industry growth this year.
- It compensates for lower aircraft deliveries from Boeing and Airbus, driven by supply chain issues.