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May 12, 2020   (0 Comments)
Posted by: Natasha Gagnon
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AIAC survey finds aerospace sector anticipates 40% decrease in revenue due to COVID-19

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https://www.skiesmag.com/news/aiac-survey-aerospace-revenue-covid-19/

Canadian aerospace companies are anticipating a 40 per cent decrease in revenue this year as a result of the coronavirus pandemic. The startling projection is among the preliminary finds of a membership survey recently conducted by the Aerospace Industries Association of Canada (AIAC).

 

AIAC says more than 50 per cent of members responding to a recent aerospace industry survey have laid off employees. On May 5, landing gear manufacturer Héroux-Devtek confirmed a 10 per cent reduction of its workforce, including 125 employees in Quebec. Héroux-Devtek Photo
AIAC says more than half of members responding to a recent aerospace industry survey have laid off employees. On May 5, landing gear manufacturer Héroux-Devtek confirmed a 10 per cent reduction of its workforce, including 125 employees in Quebec. Héroux-Devtek Photo

 

The aerospace sector was in good health before the virus spread, and most companies had a sizeable backorder, said Moira Harvey, executive director of the Ontario Aerospace Council (OAC), which represents over 200 small- and medium-sized enterprises (SMEs) and several Tier 1 manufacturers.

“Production numbers are way down from what we were enjoying prior to COVID,” she said, noting that even with the trials of the Boeing 737 Max, monthly single aisle production was strong.

“If we are fortunate, we’re looking at half those numbers moving forward, and that’s not going to be immediate. It’s going to work its way back up to that. Obviously, that has a domino effect within the supply chain,” she said. “[We] are looking at reduced production requirements and therefore having to adjust capacity.”