Press Release

Bleak Economic Outlook for U.S. Aviation Affecting Global Aerospace Industry if Congress Proceeds with Rampant Sequestration in 141 Days


August 16th, 2012

Budget cuts could have devastating economic effects on US Aerospace and reduce air transportation altogether, but bright side is decreased emissions output

The US and European countries are the dominant markets in the aerospace industry, and act as catalyst for overall growth. In fact, the US represents the biggest aerospace market in the world, followed by France, UK, Germany and Canada. In a recent report released by the Aerospace Industries Association (AIA), nationwide sequestration - set to be triggered in less than 5 months - could result in astronomical budget cuts to the US Federal Aviation Administration operations roughly amounting to annual losses of $80 billion from the national GDP. Moreover, the automatic spending cuts are estimated to drop passenger enplanements by more than 50% and reduce transported air freight by one billion pounds. The report Global Industry Aerospace Industry Outlook to 2015, now available from Global Information Inc., finds that upward trends of air traffic is paramount to maintaining strong growth in the this industry.

Theoretically, reducing air activity through sequestration could reduce total tons of emissions, which achieves a major aim of the Next Generation Air Traffic Control System (NextGen) to be implemented in 2025 if budget cuts are carried through. If Congress does decide to proceed with sequestration, players in the US aerospace industry may need to turn to private equity firms for financing. “Analysis of Private Equity and Venture Capital Investment Trends in the North American Aerospace and Defense Industry, ” now available from Global Information Inc., covers key opportunities in aerospace and defense that financial and strategic investors are likely to capitalize on.

Global Aerospace Industry Outlook 2015

The US represents the biggest aerospace market in the world, followed by France, UK, Germany and Canada. In the near future, developing nations, like China, India, Mexico, and Brazil are expected to emerge as potential marketplaces for aerospace products.

The study finds that growing air traffic and increasing merger & acquisition activities are adding growth to this strong industry. The report provides an extensive research and objective analysis of the global aerospace market, and its various segments, including civil and military aerospace. In addition, the report entails a detailed analysis of the industry in terms of developed and emerging markets. The research contains information on key players such as Business Description and Recent Developments which will help clients assess opportunities existing in the global aerospace market, and formulate appropriate strategies.

An Executive Summary of this analysis, full table of contents, and a free sample of the full report are available at http://www.giiresearch.com/report/rnc243952-global-aerospace-industry-outlook.html

Analysis of Private Equity and Venture Capital Investment Trends in the North American Aerospace and Defense Industry

Illiquid investments and long gestation periods among other financing challenges for Aerospace and Defense industry

This research service covers the private equity and venture capital investment trends in the Aerospace & Defense (A&D) industry. The objective of the study is to provide both financial and strategic investors information pertaining to investment opportunities. The output of the study will help in addressing the following points:

  • Factors driving the private equity/venture capital investments in A&D in North America
  • Risks involved with investing in this capital-intensive industry
  • Countries that have the most congenial environment for investments
  • Preferred sectors/segments/sub segments for investments
  • Investor expectations from targets before investing
  • Effects of the current Eurozone crisis on investment activity
  • Exit strategies followed by investors

An Executive Summary of this analysis, full table of contents, and a free sample of the full report are available at http://www.giiresearch.com/report/fs248209-analysis-private-equity-venture-capital-investment.html

About Global Information, Inc.

Global Information (GII) (http://www.giiresearch.com) is an information service company partnering with over 400 research companies around the world. Global Information has been in the business of distributing technical and market research for more than 25 years. Expanded from its original headquarters in Japan, Global Information now has offices in Korea, Taiwan, Singapore, Europe and the United States.