Aircraft Marine and Railroad Transportation Equipment Wholesaling

The Aircraft Marine and Railroad Transportation Equipment Wholesaling industry has grown steadily over the last five years, only to be derailed by events in 2020.

Airlines, freight firms, and the military all purchase supplies from industry manufacturers to restore and upgrade components on their planes, trucks, and trains. The majority of industry revenue is generated by aircraft-related goods.

Economic prosperity has resulted in rising air traffic and freight volumes over the last five years. However, owing to the COVID-19 (coronavirus) pandemic and its negative effect on air traffic, these patterns will reverse in 2020.

For the five years to 2020, industry sales fell at an annualized rate of 0.8 percent to $48.5 billion, with a 10.6 percent drop in 2020 alone.

Over the majority of the five years leading up to 2020, the Aircraft Marine and Railroad Transportation Equipment Wholesaling industry has grown. Transportation machinery and materials are mainly distributed through industry wholesalers, which include aircraft parts and engines, ship and boat pieces, freight vehicles, and, to a lesser degree, aircraft and ships.

Economic prosperity has resulted in rising air traffic and freight volumes over the last five years. As a result, facing intensified competition, demand for aircraft and other aviation equipment, components, and logistics facilities has increased. Reduced corporate tax rates and a favorable interest rate climate enabled large acquisitions of new aircraft by commercial airlines during the latter half of the decade, boosting industry sales at unparalleled rates.

However, owing to the COVID-19 (coronavirus) pandemic, these patterns have shifted. As a result, Research predicts that market sales will fall 10.6 percent in 2020 alone. This dramatic drop is likely to cancel out previous growth during the time. Over the five years to 2020, market revenue has decreased by an annualized 0.8 percent to $48.5 billion.

The Aircraft Marine and Railroad Transportation Equipment Wholesaling industry is expected to expand at a slower pace over the next five years, to 2025. A downturn in freight shipping is one of the many external variables that are likely to dampen demand for industry services.

In addition to lower freight costs, an anticipated rise in interest rates would likely have a negative impact on the industry’s capital-intensive downstream markets, especially aircraft manufacturers, as the cost of borrowing rises.

In general, as interest costs rise, downstream markets such as airlines are less likely to invest in transportation equipment. Consumer demand for air travel, on the other hand, is projected to recover as jobs and per capita disposable income rise over the next five years.

Nonetheless, the implications of a protracted economic recession in the five years leading up to 2020 are projected to limit the industry’s growth prospects. As a result, Research predicts that market sales will increase by 6.4 percent per year to $66.1 billion by 2025.

This company sells transportation equipment and materials wholesale, such as aircraft and aircraft parts and components, vessels and marine equipment, and freight cars and train equipment.

It does not sell marine pleasure boat engines and components, motor vehicle transportation supplies, or electronic navigation equipment (e.g. sonar or radar).