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
Industry Forecast
Aircraft, Marine & Railroad Transportation Equipment Wholesalers Industry Growth
Source: Vertical IQ and Inforum

Recent Developments

Jun 17, 2024 - Prices Fall, Wages Up
  • Producer prices for machinery, equipment, and supplies merchant wholesalers fell for the second consecutive month in April 2024, according to data from the Bureau of Labor Statistics (BLS). Producer prices dropped 4.9% in April 2024 compared to a year ago, after falling 0.7% in March 2023 year over year. Labor costs and employment for the industry were up in April 2024. Employment by transportation equipment and supplies (except motor vehicle) merchant wholesalers rose 4.1% in April 2024 compared to a year ago, per BLS data. Average wages for nonsupervisory employees at machinery, equipment, and supplies merchant wholesalers were 4.3% higher in April year over year, reaching $33.29 an hour. Industry wages have increased significantly since the COVID-19 pandemic, rising 22.5% since 2019 in a competitive job market.
  • 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.
  • US freight-rail traffic grew 1.2% in April 2024 compared to the previous year, according to Association of American Railroads (AAR) data in Progressive Railroading. Intermodal volume grew 8.6% year over year to 1,018,569 containers and trailers in April 2024, while US railroads originated 848,882 carloads, a 6.5% decline from a year ago attributed in part to decreased coal shipments. Nine of the 20 carload commodity categories tracked by the AAR posted gains in April, including petroleum and petroleum products (13.8%), motor vehicles and parts (12.1%), and chemicals (2.9%). Commodity categories with decreases in April included coal (28%), metallic ores (16.9%), and crushed stone, sand, and gravel (4.4%). Looking at year-to-date figures, US railroads saw carloads down 4.8% (3,622,709 carloads) and intermodal units up 9% (4,287,216 units) compared to the previous year.
  • Aircraft delivery delays are expected to continue through 2026, according to the latest data from International Air Transport Association (IATA) officials in a report in Channel News Asia. Speaking at the IATA Annual General Meeting and World Air Transport Summit, director-general Willie Walsh said he expected the supply chain issues slowing aircraft deliveries to continue impacting the industry through 2025 and 2026. According to Walsh, "We're not getting the new aircraft that a lot of airlines have banked on. It has also forced some airlines to reintroduce aircraft that they had planned to retire." The IATA expects the number of commercial flights worldwide in 2024 to be 38.7 million in 2024, 1.4 million less than the projection from December 2023, which the association attributes to aircraft delivery delays, per Travel Weekly. In addition, the number of aircraft deliveries expected for 2024 has decreased by 11% compared to just a few months ago.
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