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 http://www.aerostrategy.com/.

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.Jennife Zapp
Research Associate
AeroStrategy
101 N. Main, Suite 400
Ann Arbor, MI 48104
(734) 213-1579 direct
jzapp@aerostrategy.com
www.aerostrategy.com

Source : Aerostrategy