Increase in suppliers’ need for capital to meet soaring demand for planes and parts
Picture: 123RF/LANGSTRUP
“While the overall economy may see slower growth or enter into a recession, aerospace suppliers need capital now to support the significant increased demand,” said Charlie Compton, partner at Boca Raton, Florida-based AE Industrial Partners, a private equity firm specialising in investments in aerospace and other sectors.
Anne Balcer, a senior executive at Independent Community Bankers of America , which represents small US banks, said she did not expect a slowdown in credit availability, but not all agreed. TNT, which counts Safran and Triumph Group as customers, got a tepid response from banks due to a weaker balance sheet last year. Theisen questioned whether Silicon Valley Bank’s collapse “will further exacerbate the issues with stingy capital markets.”
Demand for aftermarket parts and repairs to keep planes flying is also up. Jefferies analysts expect a 16% rise in 2023 commercial aftermarket revenue, while Melius Research estimates commercial aftermarket core growth above 20%.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GROUNDUP: Immigration activists launch detention hotline as calls for help increaseLawyers for Human Rights say they deal with at least 35 calls a day.
Read more »
Immigration activists launch detention hotline as calls for help increase | News24Lawyers for Human Rights has been inundated with calls for help from mostly immigrants who have been detained and cannot afford legal representation. | GroundUp_News
Read more »
Inflation of 7% may spell interest rate increaseIncrease implies Reserve Bank may keep raising interest rates for longer than expected
Read more »
'Very little doubt' Sarb will increase repo rate in April, say economistsThis follows Wednesday's inflation increase to 7%, which has sparked fears that the central bank's Monetary Policy Committee (MPC) will continue its hiking cycle when it meets next month.
Read more »
JSE firmer, with global indices mixed, as investors digest Fed’s rate increaseUS central bank chair Jerome Powell hints at a further 25bps increase, but says no interest rate cuts are on the radar for the rest of the year
Read more »
Ships carrying fuel from sanctioned countries on the increase, research findsOpaque parallel trade has grown in the past few years as a result of rising Iranian oil exports as well as restrictions imposed on Russian energy sales due to the war in Ukraine
Read more »