Learjet Inc. - Competitors

Learjet Inc. Competition

Now Viewing Learjet Inc.'s competition in: Aerospace Products and Parts Manufacture (primary)

Recent Developments

Outsourcing Disagreement Curtails Boeing Production - A strike in September and October 2008 by the union representing machinists halted production of Boeing's 787 Dreamliner jet. At issue was how much Boeing would rely on third parties to handle key manufacturing- and assembly-related functions within its plants. Looking beyond the Boeing strike, industry observers point to a trend: manufacturers continue to outsource to control costs and compete in global markets; unions fear loss of jobs.

Credit Concerns Slow Demand for Business Jets - Leading business jet manufacturers report reduced orders and slowing sales during third quarter 2008. Cessna says that orders for Citation jets were lower than expected, and Gulfstream says that it may have to cut production of midsize jets, according to Aviation Week. The slump was blamed on the reduced availability of credit for potential buyers.

Prices for Aircraft, Parts Take Off - Producer prices for US makers of aerospace products and parts rose 4.4 percent in September 2008 compared to September 2007. Aircraft prices increased 4.6 percent, but rose a more modest 3.8 percent for aircraft engines and engine parts. Rising costs for materials, including aluminum and rubber and plastic products, helped drive the price increases.

Competitive Landscape

Demand is driven by the US military budget and the overall economic climate, which affects airline traffic and demand for new commercial aircraft. The profitability of individual companies depends on technical expertise and the ability to accurately price long-term contracts. Large companies enjoy economies of scale in design, manufacturing, and purchasing. Small companies can compete effectively by concentrating on selected components and parts manufacturing for particular prime contractors. Increasingly, small companies are developing system integration capabilities as large firms outsource more aspects of contracts. Production of aircraft and major aircraft components is highly automated: average revenue per employee is over $300,000.

Full Industry Overview For Aerospace Products and Parts Manufacture

Aerospace Products and Parts Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US aerospace products is forecast to grow at an annual compounded rate of 6.8 percent between 2008 and 2013.

Aerospace Manufacturing Growth Fairly Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.