Economic forecasts can always be risky, especially with a new Presidential administration taking office next month. Worldwide events, such as the COVID-19 pandemic in 2020, can dramatically re-shape predictions. Experts cannot account for unforeseen circumstances that transform the world stage.
Heading into 2025, however, the outlook appears strong for aerospace and defense spending. In addition, the helicopter and eVTOL (electric vertical takeoff and landing) markets are also expected to expand significantly. Alpha Metalcraft Group manufactures important components for each of these industries.
Deloitte said in a report in November that the defense industry “is expected to see continued and growing focus in several key areas, including rocket technology, unmanned systems and space capabilities.”
In the same report, Deloitte said the airline industry experienced strong demand in 2024, with passenger revenues up 15.2% from 2023, and air travel could reach a record high of 4.96 billion travelers in 2025. “This strong demand for travel has led aircraft manufacturers to plan for increasing monthly production, largely for narrow-body aircraft,’’ the report said.
One of the most promising developments is the anticipated growth of the eVTOL market. A report from Markets and Markets said the eVTOL market is expected to grow from $1.2 billion in 2023 to $23.4 billion by 2030. The aircraft “have the potential to revolutionize air mobility, offering convenient air taxi services and serving as efficient platforms for transportation, emergency response and aerial logistics,” the report said. “Their electric propulsion systems contribute to reduced noise pollution and lower carbon emissions, aligning with increasing focus on sustainable transportation solutions.”
The helicopter industry is also anticipated to grow, with worldwide turbine-powered fleets growing at 1.4% CAGR and reaching 24,265 units in 2034.
The growth is welcome news for AMG, which produces aircraft components through electroforming and deep drawing processes. Among the most critical components for eVTOL aircraft are leading edge guards, which are also called abrasion strips. The guards protect aircraft from erosion caused by water droplets and solid particles.
Abrasion strips, which last between 1,000 to 2,500 flight hours, are manufactured through AMG’s electroforming process. The process provides more precision, minimizes waste and can produce large, heavy and oversized components.
For the defense industry, AMG produces missile outer skins, nose cones, internal components and heat and cold shields for some of the world’s most sophisticated weaponry.
While there are challenges with employee recruitment, supply chains, and uncertainty what will happen with the Presidential transition, most observers believe the forecast is bright for aerospace and defense.
“Growth across the industry is likely to continue with technology underlying each step,’’ the Deloitte report said. “The myriad technologies applied throughout the industry offer a plethora of opportunities for companies – ones that can help drive both margins and innovation for the future and seize the opportunities that lie ahead.”