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
Feb 6, 2025 - Aircraft Capital Spending Down
- Amidst an increase in overall US capital expenditure spending towards the end of 2024, transportation equipment orders fell 7.5% in November, according to the US Department of Commerce. Most of the fall can be attributed to a 45% drop in commercial airliner orders resulting from another chaotic year at Boeing. The company’s aircraft deliveries fell almost a third in 2024 to 348 planes delivered, less than half of what rival Airbus delivered (most of a plane’s purchase price is paid on delivery). It is the fifth straight year of Airbus sales dominance over Boeing, which continues to be hobbled by the fallout from several crises over the past six years: two plane crashes, an in-flight door malfunction, labor strikes and government-mandated production caps conditioned on safety improvements. While Boeing reported 142 aircraft orders in December, it is still lagging behind in deliveries of its current orders.
- As aircraft supply chain problems persist, the average global aircraft fleet age has worsened from 13.6 years in 2023 to 14.8 years in 2024, according to International Air Transport Association (IATA) data reported by Simple Flying. Aging aircraft create a range of problems for airlines including higher maintenance costs and higher fuel costs than newer aircraft. According to IATA Director General Willie Walsh, airlines are getting hit on revenues, costs, and environmental performance. IATA data showed that aircraft deliveries have fallen 30% from 1,813 aircraft in 2018 to an estimated 1,254 in 2024 and 1,802 in 2025. The cumulative backlog has reached a record high of 17,000 aircraft. Companies are looking to lease aircraft to continue to grow and meet passenger demand, causing higher lease rates as competition for capacity expands.
- Economic activity in the services sector expanded for the sixth consecutive month in December 2024, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including Finance & Insurance; Arts, Entertainment & Recreation; Retail Trade; Health Care & Social Assistance; Transportation & Warehousing; Public Administration; Accommodation & Food Services; Wholesale Trade; and Utilities. Wholesale Trade was one of the industries that reported increases in business activity, employment, new export orders, and prices for the month. The report also noted that the Wholesale Trade was among industries reporting slower deliveries and decreases in the backlog of orders and inventories in December.
- 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.
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