Taiwan Aerospace Industry's Output Value Hits Record High of NT$83.218 Bn. in 2013
2014/05/08 | By Steve ChuangFollowing years of brisk development, Taiwan's aerospace industry saw its overall output value (excluding military aircraft production and maintenance services) hit a new high of NT$83.218 billion (US$2.776 billion) in 2013, up 6.16% from 2012, according to statistics compiled by Ministry of Economic Affairs.
The achievement was partly due to strong global demand for commercial aircrafts. According to a forecast by Airbus, more than 29,226 new aircrafts will be needed from 2013 through 2032, worth about US$4.4 trillion. Of those, Airbus estimates, 1,711 will be jumbo jets, 7,273 wide-body models and 20,242 narrow-body models.
Airbus forecasts that an estimated 10,941 new aircrafts will be needed in the Asia Pacific, 5,952 in Europe, 5,847 in North America, 2,307 in Latin America, 1,116 in Russia and 988 in Africa during the period.
Amid the optimistic market climate for Taiwanese aerospace companies, however, is the growing rivalry from competitors in emerging countries, which have been gradually gearing up for global aircraft and engine production over the past years with American and European aircraft firms increasingly shifting production of lower-end components and parts there for cost considerations. This transition, insiders say, causes Taiwanese manufacturers to be gradually replaced by emerging rivals on the world's major aircraft makers' Tier 4 contract supplier lists.
To fend off competition, Aerospace Industrial Development Corporation (AIDC), Taiwan's leading firm of military and commercial aircrafts, engines and related maintenance and engineering services, advises Taiwanese peers to step up moving upward to Tier 2 and Tier 3 supply chains, and vie for orders for aircraft fuselage construction and engine assemblies that generate higher margins than individual components and raw materials. (SC)
| Overall Output Value of Taiwan's Aerospace Industry | |||||
| Year
| 2009
| 2010
| 2011
| 2012
| 2013
|
| Output Value
| NT$58.68 Bn.
| NT$62.68 Bn.
| NT$70.79 Bn.
| NT$78.38 Bn.
| NT$83.21 Bn.
|