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Deloitte Global: Commercial aerospace industry slowing down, but record backlogs continue

Press release

Subsector production grew 6.1 percent in 2014 but expected to slow to 3 percent growth in 2015.

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NEW YORK, 9 June 2015—Global aerospace and defense companies added US$12.7 billion in revenues in 2014 according to a Deloitte Touche Tohmatsu Limited Global Manufacturing Industry group (Deloitte Global) study of the top 100 global aerospace and defense companies. Although revenues in the commercial aerospace subsector increased by US$23.7 billion in 2014, the strong growth was partly offset by revenue declines in the defense subsector, which experienced a US$8.2 billion decrease in revenue from 2013 to 2014.

The analysis entitled 2015 Global aerospace and defense sector financial performance study, found that the commercial aerospace subsector in 2014 set new records for sales totaling 2,888 orders; a 6.1 percent increase in deliveries to 1,352; a 14.4 percent growth increase in backlogs reaching a record high of 12,175 aircraft; and revenues reaching US$314.9 billion. The primary drivers of new commercial aircraft sales include increased travel demand, especially in the Middle East, India, and China, as well as replacement of obsolete aircraft with new fuel-efficient models.

The story is not so bright, however, for the defense subsector with a 2.2 percent revenue decline in 2014. “Led by the largest country defense industry, the U.S. has lost close to 168,000 defense jobs since 2010 and revenues of approximately US$11.5 billion in the same period”, said Tom Captain, Deloitte Global Aerospace and Defense Sector Leader.

From a regional viewpoint, the study found that aerospace and defense companies headquartered in the United States accounted for US$408.5 billion of the global aerospace and defense sector revenue, while European companies accounted for US$222.8 billion in 2014. “Europe is also a critical geographic region representing nearly 33 percent of total global aerospace and defense revenues,” said Captain.

In terms of the outlook for 2015, Captain expects global aerospace and defense industry revenues to grow by 1.5 percent, a slowdown from 1.9 percent global industry growth in 2014.  

Press contact

Carolyn Vadino
Public Relations
Deloitte Touche Tohmatsu Limited (Deloitte Global)
+1 212 436 6970
cvadino@deloitte.com

Notes to Editor

Methodology

Deloitte Global analyzed the 2014 financial performance of 100 major global and US aerospace and defense companies. Key financial indicators analyzed include sales revenue, operating earnings, and operating margins, obtained through public company filings and press releases.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

DTTL Global Manufacturing Industry group

The DTTL Global Manufacturing Industry group is comprised of around 2,000 member firm partners and over 13,000 member firm industry professionals in over 45 countries. The group’s deep industry knowledge, service line experience, and thought leadership allow them to solve complex business issues with clients in every corner of the globe. Deloitte member firms attract, develop, and retain the very best professionals and instill a set of shared values centered on integrity, value to clients, and commitment to each other and strength from diversity. Deloitte member firms provide professional services to 75 percent of the manufacturing industry companies on the Fortune Global 500®. For more information about the Global Manufacturing Industry group, please visit www.deloitte.com/manufacturing

Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence.  

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