The aerospace industry will begin experiencing a recovery this year after suffering the impact of the global pandemic in 2020, offering hope to an entire sub-sector of businesses that offer products to the area, such as aerovac composites, engines, and hydraulics. These small businesses are the ones that help companies serve the industry that provides passenger aircraft for travelers and military aircraft to secure nations across the world.
COVID-19 took a major toll on the commercial aerospace industry, mostly as passenger traffic and air travel all but stopped for much of 2020 in response to the deadly virus. While the defense sector of the aerospace industry remained stable during the pandemic to meet ongoing global security needs, the prospect of some cost increases and delivery delays are real as operations ramp up for businesses hurt by the economic impact of the virus, according to the news site Business Facilities.
The result will be an uneven recovery for the aerospace industry as commercial airlines slowly continue increasing the number and frequency of flights this year and global interests turn to evaluate international security needs for national defense budgets. While not all positive, it’s welcome news to a broad spectrum of businesses that continue to serve the struggling aerospace industry, including everything from travel agencies that serve consumers to suppliers who serve aircraft manufacturers.
As the impact of COVID-19 continues to subside, the aerospace industry’s recovery will be closely watched as one that suffered some of the greatest economic hardships. A recovery in some particularly hard-hit sectors, like chemical and materials and aircraft components, will bring much-needed relief. For example, the aerospace industry relies on surface milling operations in the manufacturing process. In the aerospace industry, chemical milling uses a strong acid or base solution to dissolve unwanted aluminum, titanium, steel, and other materials during the manufacture of aircraft parts. This process is important because it reduces the weight of parts and improves the efficiency of the aircraft. As industry activity increases, these businesses will ramp back up to meet demand after COVID-19 disrupted supply chain operations and facility shutdowns, according to an economic analysis published by Research and Markets.
An analysis completed by Deloitte concludes that the aerospace industry will benefit from a gradual increase in travel demand and ongoing needs of the defense sector, albeit at a likely higher cost and longer schedule, Business Facilities reports. However, Deloitte warns that passenger traffic may not return to pre-pandemic levels before 2024, so any recovery is expected to be slow.
There will be other challenges facing the industry. Market growth likely will be affected by high capital investment and price fluctuations in raw materials, according to Data Bridge Market Research. The possibility of declining military expenditures and strict aviation regulations may also challenge the aerospace parts manufacturing market into 2028.