The Effect of Donald Trump’s Presidency on Aerospace Industry
As many know already, Donald Trump has been elected as the new president of the United states. Many people are excited for his presidency and many are scared as to what he might do to this great country. Beyond his racist slurps and his sexist mind, many say he is a smart man that will make “America great again” this is still in question if he will or not. He does plan to change a lot of things in our politics and economy. And there might be even change the aircraft industry. One financial analyst thinks that with Trump’s election, there could be more spending on defense, including military aircraft. J.P Morgan analyst Seth Seifman wrote “in the near term, it should support defense stocks, with a moderate negative impact for commercial aero that may be in line with the market as a whole” this is bad news from some especially on the commercial based companies.
At the same time, higher spending could be beneficial for the spirit Aerospace Systems and possibly Textron Aviation. Textron Aviation product Beechcraft Trainer and AT-6 light -attack aircraft. But unfortunately, the U.S military have not put in an order for these items. “even with the possibility of stronger defense spending, Trump has said the Defense Department could “buy smarter,” and that “could suggest a tougher attitude on contractor profitability.” Cowen and Co analyst mentioned this earlier this week and it makes total sense because this puts pressure on the aerospace community and is going to push them to work smarter, maybe lowering their prices for higher quality.
Also, his presidency could affect the relationship with people internationally and lessen the international relations, this mainly will affect the Boeing Aerospace and Airbus customers. Stallard wrote “We would expect any real impact from the Trump Administration to take some time to flow through to global airline results, and the demand for new aircraft” at least they know this so they can be prepared for the worst.
AFR is owned and operated by ASAP semiconductor, it serves as an alternative to transitional authorized franchise distributors.
Subscribe to our Newsletter and stay tuned.