Aircraft, Marine & Railroad Transportation Equipment Wholesalers


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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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Sep 4, 2024 - Passenger Flight Hours Rise in 2024
                                • 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.
                                • Employment at transportation equipment and supplies (except motor vehicle) merchant wholesalers grew modestly year to date through June 2024, according to the US Bureau of Labor Statistics (BLS). Industry wages for nonsupervisory employees remained fairly consistent during the year through June 2024, when wages per hour reached $33.14. Average wages in June 2024 were 3% higher than a year ago. Producer inflation for machinery, equipment, and supplies merchant wholesalers, including airplane, marine, and railroad transportation equipment wholesalers, rose over the first seven months of the year, according to producer price data released by the BLS.
                                • The US outboard engine retail market grew in 2023, as the appetite grew for higher-performance engines, according to the latest US Recreational Boating Statistical Abstract from the National Marine Manufacturing Association (NMMA). The 300hp and greater categories showed a nearly 18% sales increase, and the 250-299.9hp segment also posted an uptick. According to the report, the South Atlantic, Great Lakes, and Gulf Coast continued their market stronghold regionally, even with slight variations in unit sales.
                                • The global air cargo market is projected to have double-digit growth in 2024, according to the latest report by Xeneta in Fibre2Fashion. The improved 2024 forecast comes after a robust 12% year-over-year increase in demand in May. The new projection is better news for the industry and marks an upward revision from the low single-digit growth projected for 2024 at the end of 2023. In the second half of 2024, the global air cargo market will be strengthened by higher container shipping spot rates, driven by port congestion and disruptions in the Red Sea, according to Xeneta. The rate increase may cause some shippers to consider shifting to air cargo.
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