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Articles tagged with: Aluminum

26
March
2014

Aero growth set to buoy aluminum demand

Aero growth set to buoy aluminum demand

“It’s an impossibly high base year, with production having more than doubled in half a decade. The industry is running the risk of creating a bubble, and a balance needs to be struck,” said Richard Aboulafia, vice president of analysis at Teal Group Corp., Fairfax, Va. “The industry could be building for a colossal burp after watching costs and rates rise as new planes are produced.”  There also is increased competition from composites, particularly with Boeing’s 787 Dreamliner.  Aboulafia said the battle  of raw material suppliers is a back-and-forth process, with aggressive marketing from competing sectors.  “The Rolls Royce receivership in the 1970s was due to its use of composites in its engine. It became the watchword for overreach,” he said.  Composites have been used on business jets, but all except one failed, Aboulafia noted. The jury is still out on the latest release, which will be Montreal-based Bombardier Inc.’s  Learjet 85.  “Companies are naturally drawn to the innovation story, but it is easy to oversell technology. This is the oversold nature of the composite revolution,” Aboulafia said.

MEDIA OUTLET: American Metal Market TAGS: 787 Dreamliner | Aluminum | Bombardier | Business Aircraft | Composites | LearJet 85 | Rolls-Royce

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