Summary

“Global Aerospace Industry Outlook to 2010” is a new report published by Global Markets Direct in association with ICD Research that analyzes how aerospace companies products & services spend, procurement strategies & practices and business are being affected by the recession. In an uncertain economic climate this report gives you access to the category-level spending outlooks, buyer budgets, supplier selection criteria, business challenges and investment opportunities of leading purchase decision makers. The report also identifies buyers and suppliers future growth, M&A and investment expectations. The research is based on an extensive survey of senior and C-level industry executives from our market leading panels.

Scope

- The opinions and forward looking statements of over 450 industry executives have been captured in our in-depth survey, of which over 40% represent Director & C-level respondents and a further 33% represent senior engineers
- This report covers data and analysis on buyer spend, procurement and industry developments by aircraft manufacturers, aircraft operators, airlines, MRO and OEM companies and aerospace goods and service suppliers worldwide
- The report examines current practices and provides future expectations over the next 12-24 months
- The research is based on primary survey research conducted by Global Markets Direct in association with ICD Research accessing its B2B panels comprised of senior purchase decision makers and leading supplier organizations
- Key topics covered include buyer spend activity, procurement behaviors & strategies and how these have been affected by the recession, threats & opportunities for the aerospace industry, economic outlook and business confidence.
- In the report buyers identify what suppliers need to do to maintain their business and the key actions being taken by industry players to overcome the leading business threats
- The report provides qualitative analysis of the key industry threats and opportunities and contains full survey results
- The geographical scope of the research is global – drawing on the activity and expectations of leading industry players across the Americas, Europe, Asia-Pacific and Africa & Middle East

Highlights

- As many as 58% of aerospace manufacturers expect to increase their procurement spend over the next 12 months and a further 18% looking to maintain it at current levels, and with many claiming to be re-evaluating their supplier base the market open to competition is expected to increase over the coming year
- 38% of industry buyers are seeking to engage in partnerships to optimize working capital and reduce costs - closer cooperation between suppliers and buyers is being sought during this time of market uncertainty
- Less than one in five industry buyers do not regularly evaluate suppliers to ensure they meet high ethical and environmental standards

Reasons to buy

- Drive revenues by understanding future product investment areas and growth regions by leading industry players
- Formulate effective sales & marketing strategies by identifying how buyer budgets are changing and where spend will be directed to in the future
- Better promote your business by aligning your capabilities and business practices with your customer’s changing needs during these times of market uncertainty
- Secure stronger customer relationships by understanding the leading business concerns and changing strategies of buyers in the aerospace industry
- Effectively plan your business strategies
- Predict how the industry will grow, consolidate and where it will stagnate
- Uncover the business outlook, key challenges and opportunities identified by suppliers and buyers in the industry"
 

1.1 List Of Tables 4
1.2 List Of Figures 7
2 Introduction 10
2.1 What is This Report About? 10
2.2 Methodology 10
2.3 Profile of Survey Respondents 11
3 Executive Summary 15
4 Economic Outlook & Confidence 18
4.1 Global Economy Recovery Expectations 18
4.2 Revenue Growth Expectations 22
5 Aerospace Industry Investment Outlook 27
5.1 Fastest & Slowest Growing Markets 27
5.2 M&A Activity Predictions 37
5.3 Supplier’s Industry Outlook 40
6 Recession: Threats & Opportunities For The Aerospace Industry 45
6.1 Leading Business Concerns Due To Recession 45
6.2 Key Actions To Overcome Business Threats 49
6.3 Key Actions To Maintain & Win Buyer Business 54
6.4 Leading Recession-Related Business Opportunities 64
7 Aerospace Industry Buyer Spend Activity 70
7.1 Annual Procurement Budgets 70
7.2 Expected Change In Procurement Spend 76
7.3 Expected Change In Spend By Product & Service Category 81
8 Procurement Behaviors & Strategies & The Impact Of Recession 94
8.1 Critical Success Factors For Supplier Selection 95
8.2 Current Effects Of Recession On Procurement Objectives 100
8.3 Expected Future Effects Of Recession On Procurement Objectives 104
8.4 The Effects Of Recession On Procurement Strategy 110
9 Appendix 120
9.1 Full Survey Results – Closed Questions 120
9.2 Methodology 128
9.3 Contact Us 129
9.4 About Global Markets Direct 129
9.5 Disclaimer 129"
 List of Tables
Table 1: Count Of Global Aerospace Industry Survey Respondents By Company Type (Number Of Respondents), 2009 Industry Survey 11
Table 2: Buyer Respondents By Job Role (% Buyer Respondents), Global Aerospace Industry, 2009 11
Table 3: Buyer Respondents By Organization’s Global Turnover (% Buyer Respondents), Global Aerospace Industry, 2009 12
Table 4: Buyer Respondents By Organization’s Total Employee Size (% Buyer Respondents), Global Aerospace Industry, 2009 12
Table 5: Supplier Respondents By Job Role (% Supplier Respondents), Global Aerospace Industry, 2009 13
Table 6: Supplier Respondents By Organization’s Global Turnover (% Supplier Respondents), Global Aerospace Industry, 2009 13
Table 7: Supplier Respondents By Organization's Total Employee Size (% Supplier Respondents), Global Aerospace Industry, 2009 14
Table 8: Global Aerospace Industry Expectations Of Global Economy Recovery Timings By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 20
Table 9: Global Aerospace Industry Expectations Of Global Economy Recovery Timings By Company Type: Aircraft Manufacturers & OEM's, Airlines, Aircraft Operators, Aerospace Industry Suppliers (% All Respondents), 2009 22
Table 10: Company Revenue Growth Optimism By Global Aerospace Industry Company Type: Aircraft Manufacturers & OEM's, Airlines, Aircraft Operators, Aerospace Industry Suppliers (% All Respondents), 2009 24
Table 11: Company Revenue Growth Optimism In The Global Aerospace Industry By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 26
Table 12: Aircraft Manufacturer & OEM Industry: Market Predictions Of The Fastest And Slowest Growing Regions (% Aircraft Manufacturer & OEM Respondents), 2009 29
Table 13: Airline Industry: Market Predictions Of The Fastest And Slowest Growing Regions (% Airline Respondents), 2009 31
Table 14: Aircraft Operator Industry: Market Predictions Of The Fastest And Slowest Growing Regions (% Aircraft Operator Respondents), 2009 34
Table 15: Aerospace Industry Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Regions (% Aerospace Industry Supplier Respondents), 2009 36
Table 16: Key Growth Areas In The Global Aerospace Industry (Analysis Of Supplier Respondents), 2009 41
Table 17: Key Growth Areas In The Global Aerospace Industry (Analysis Of CEO/MD/Director/Vice President/Board Level Supplier Respondents), 2009 42
Table 18: Key Declining Areas In The Global Aerospace Industry (Analysis Of Supplier Respondents), 2009 43
Table 19: Key Declining Areas In The Global Aerospace Industry (Analysis Of CEO/MD/Director/Vice President/Board Level Supplier Respondents), 2009 44
Table 20: Aircraft Manufacturer & OEM Vs. Airline Vs. Aircraft Operator Vs. Aerospace Industry Supplier: Leading Business Concerns For The Period 2009-2010 Among Global Aerospace Industry Buyers And Suppliers (% All Respondents), 2009 48
Table 21: Leading Business Concerns For The Period 2009-2010 Among Global Aerospace Industry Buyers And Suppliers By Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 49
Table 22: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009-2010 In The Global Aerospace Industry (Analysis Of All Respondents), 2009 51
Table 23: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009-2010 In The Global Aerospace Industry – Senior Level Responses Only (Analysis Of CEO/MD/Director/Vice President/Board Level Respondents), 2009 52
Table 24: Most Important Actions Being Implemented By Aerospace Industry Suppliers To Overcome Leading Business Concerns In 2009-2010 (Analysis Of Aerospace Industry Supplier Respondents), 2009 53
Table 25: Most Important Actions Being Implemented By Aircraft Manufacturers and OEM’s, Airlines, Aircraft Operators To Overcome Leading Business Concerns In 2009-2010 In The Global Aerospace Industry (Analysis Of Aircraft manufacturers and OEM’s, Airlines, Aircraft Operators Respondents), 2009 54
Figure 18: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Aerospace Industry: Supplier Responses Versus All Buyer Responses (% All Respondents), 2009 56
Table 26: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Aerospace Industry: Supplier Responses Versus All Buyer Responses (% All Respondents), 2009 57
Table 27: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Aerospace Industry: Aircraft Manufacturer & OEM Versus Airline Versus Aircraft Operator (% Buyer Respondents), 2009 59
Table 28: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Aerospace Industry: Analysis Of Buyer Respondents By Company Turnover (% Buyer Respondents), 2009 60
Table 29: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Aerospace Industry: Analysis Of All Buyer Respondents By Procurement Budget (% Buyer Respondents), 2009 61
Table 29: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Aerospace Industry: Analysis Of All Buyer Respondents By Region (% Buyer Respondents), 2009 63
Table 30: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The Global Aerospace Industry: Analysis Of All Buyer Respondents By Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 64
Table 31: Leading Business Opportunities During The Recession In The Global Aerospace Industry (Analysis Of All Respondents), 2009 66
Table 32: Leading Business Opportunities During The Recession In The Global Aerospace Industry – Senior Level Responses Only (Analysis Of CEO/MD/Director/Vice President/Board Level Respondents),2009 67
Table 33: Leading Business Opportunities For Aerospace Suppliers During The Recession In The Global Aerospace Industry (Analysis Of Supplier Respondents), 2009 68
Table 34: Leading Business Opportunities For Aircraft Manufact