Aircraft, Marine & Railroad Transportation Equipment Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,100 aircraft, marine, and railroad transportation equipment wholesalers act as middlemen between original equipment manufacturers (OEM) and customers, which include carriers, manufacturers, repair and maintenance facilities, the U.S. military, government organizations, dealers, and retailers. Wholesalers are integral to transportation equipment supply chains, which can involve the movement of millions of parts and components.
Dependence on Government Support
Government contracts can account for a significant percentage of sales for some aircraft and marine equipment wholesale companies.
Legacy Aircraft Create Aftermarket Opportunities
As customers extend the life of aircraft that may have otherwise been retired, MRO operators are increasingly turning to aftermarket parts.
Industry size & Structure
The average aircraft, marine, and railroad equipment wholesaler employs about 17 workers and generates $24 million annually.
- The aircraft, marine, and railroad equipment wholesale industry consists of about 2,100 firms that employ 37,300 workers and generate $51 billion annually.
- The industry is concentrated with the top 50 companies accounting for more than 70% of industry revenue.
- Large companies with aircraft, marine, and railroad equipment wholesaling operations include First Aviation Services, Dynatech International (ISO Group), Proponent, West Marine Pro, Land ‘n Sea (Brunswick), Progress Rail (Caterpillar), Railserve (Marmon Holdings), and Bridgewell Resources.
- Large companies often have international operations.
Industry Forecast
Aircraft, Marine & Railroad Transportation Equipment Wholesalers Industry Growth
Recent Developments
Oct 27, 2024 - Shipments Up, New Orders Down
- Shipments of transportation equipment rose 2.5% in August 2024 compared to a year ago and were up 16.9% from the previous month, according to US Census Bureau data. New orders of transportation equipment fell 0.5% in August 2024 year over year and were up 13.4% month over month. Year to date through August 2024, shipments of transportation equipment were up 3.1% and new orders were down 6.1% compared to a year ago. Employment at transportation equipment and supplies (except motor vehicle) merchant wholesalers rose 6.2% in July 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Average industry wages for nonsupervisory employees were flat in July 2024 year over year, reaching $32.75 per hour. Producer inflation for machinery, equipment, and supplies merchant wholesalers, including airplane, marine, and railroad transportation equipment wholesalers, fell 0.6% in July 2024 compared to a year ago, according to producer price data released by the BLS.
- The US aircraft, marine, and railroad transportation equipment wholesale industry is projected to grow at a CAGR of 2.4% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The report noted that retail and wholesale trade sectors are driven by consumer spending along with business and government expenditures. Consumer confidence is expected to improve in the forecast period, which bodes well for the retail and wholesale industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. On a positive note, inflation is subsiding, which supports a moderate increase of real disposable income by about 1.9% in 2024 and 2.4% in 2025. Production and distribution systems have improved with many imbalances diminishing, according to the forecast.
- US manufacturing activity contracted in September 2024 for the sixth consecutive month after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.2% in September 2024, unchanged from the previous month. A reading above 50% indicates manufacturing expansion. Prior to the uptick in March, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. September’s New Orders Index was in the contraction zone at 46.1%. The September Production Index was 49.8%, an increase from August’s 44.8%. Five manufacturing industries tracked by the ISM reported growth in September: Petroleum & Coal Products; Food, Beverage & Tobacco Products; Textile Mills; Furniture & Related Products; and Miscellaneous Manufacturing. The 13 industries reporting contraction in September were Printing & Related Support Activities; Plastics & Rubber Products; Wood Products; Apparel, Leather & Allied Products; Primary Metals; Transportation Equipment; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Paper Products; Machinery; Chemical Products; Fabricated Metal Products; and Computer & Electronic Products.
- According to a report in Aviation Week, monthly passenger flight hours from January to July 2024 have surpassed hours from the same period in 2019 following several uneven years. Flight hours reached 6 million in January 2024 and grew to 7.2 million in July 2024 compared to 6 million flight hours in January 2019 and 6.8 million in July 2019. In 2020, passenger hours fell to half of 2019’s levels as travel was curtailed during the COVID-19 pandemic and then increased to two-thirds of 2019’s levels in 2021. The recovery continued, and passenger flight hours approached close to 10% of 2019 levels in 2023. While 2024’s flight hours are improving, the industry is struggling with workforce and supply chain issues related to the COVID “hangover,” per the report.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.