Business analysts at Accenture Research are forecasting a return to a growth in demand in the commercial aviation industry next year following a slowdown in 2016. With air traffic not rising as fast as the previous years, demand for new aircraft has slowed down, but this has partially been offset by low fuel prices, which have encouraged operators to delay replacing their aging fleets. That, in turn, is potentially good news for the MRO companies, as demand for overhaul has grown commensurately.
During the latter part of this year, Accenture forecasts that demand for new aircraft will begin to grow again, leaving some manufacturers unable to meet demand. Increasing automation is a key to maximizing production capacity, as well as driving down costs. Many aerospace companies are moving from a single-task workforce to a force of multi-skilled employees that are more responsive to market-driven needs.
Looking at the world by region, Accenture expects the North American market to remain flat through 2016, returning to year-on-year improvements during 2017. However, its report notes that the aftermarket has been strong in 2016. The Asia-Pacific region has seen limited growth in 2016, but this is expected to increase in 2017. The rest of the world is expected to be flat for 2016, and with some growth in 2017, albeit less than that of North America and Asia-Pacific.