Asia-Pacific Aerospace Manufacturers to See Weak 2010

Aerospace parts and equipment manufacturers in the Asia-Pacific region will continue to be adversely hit by the effects of recession in 2010 although original equipment manufacturers (OEM) will not be affected as much, according to Frost & Sullivan.

Frost & Sullivan's Asia-Pacific aerospace and defence practice consultant Soumyajyoti Basu said that there had been a huge inventory build up with the airlines and the MROs due to deferred maintenance activities.

"This would mean there would be less demand of small parts and equipments in the year 2010," he said.

In the long term, however, growth would be higher with the commercial aviation manufacturing sector at the rate of 5.5% compared to military aviation manufacturing at about 5.2% for the next ten years.

Frost & Sullivan observes that engine manufacturing will continue to be the main thrust sector in the future.

The consulting firm also notes that aerospace manufacturing will see more technology improvements requiring investment, which will be facilitated by consolidation of a large number of existing small-scale manufacturers.