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“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%.