LEE’S SUMMIT, Mo. — Total avionics sales topped $1.7 billion in the first nine months of 2015, according to figures just released by the Aircraft Electronics Association, representing a 7.5% drop from last year’s sales.
For the three months of the third quarter — July, August and September — total worldwide business and general aviation avionics sales amounted to more than $581 million.
That’s a 5.3% decrease in sales compared to the third-quarter 2014 amount of more than $614 million a year ago, according to AEA officials.
In the first nine months of the year, total worldwide business and general aviation avionics sales dropped 7.5% compared to the first nine months of 2014, which was more than $1.9 billion.
“Unfortunately, the report shows some softness in sales this quarter and in the current year,” said AEA President Paula Derks. “With a year-over-year sales decline of 7.5%, clearly our industry continues to face some economic challenges that may be primarily related to the strength of the U.S. dollar. In addition, while the FAA reports that the ADS-B equipage pace has grown in the past year, it has not resulted in a similar increase in total avionics sales.”
The dollar amount reported (using net sales price, not manufacturer’s suggested retail price) includes: all business and general aviation aircraft electronic sales, including all component and accessories in cockpit/cabin/software upgrades/portables/certified and noncertified aircraft electronics; all hardware (tip to tail); batteries; and chargeable product upgrades from the participating manufacturers. The amount does not include repairs and overhauls, extended warranty or subscription services.
Of the more than $1.7 billion in sales during the first nine months of 2015, 51.4% came from forward-fit (avionics equipment installed by airframe manufacturers during original production) sales, or more than $911 million. The retrofit (avionics equipment installed after original production) market amounted to 48.6% of sales during the first nine months of the current year, or more than $862 million.
7.5% decline in year-over-year sales due to decline in the U.S. dollar ?? What is Paula smoking? The decline is ultimately and directly related to people dropping out of aviation or never entering it in the first place. And the primary reason for that … directly proportional to what I call the “BS Factor” … the amount of BS one has to put up with in order to start flying or continue to fly. At some point, the mythical ‘they’ (in the FAA) DO wear ya down and then … the end comes. Wake up AEA.
A 30% decline (and rapidly increasing) in the number of active US pilots is a direct reflection of and the primary reason for the problem. The $75K LSA airplane never really materialized. The value of used aircraft is dropping because there’s not enough people to buy ’em — at any price. The recent YouTube video of a RV-8 being shredded by it’s owner (supposedly to shield him from subsequent liability) is actually both a statement — by him — and a reflection of what’s going on. Fewer pilots = less AEA business … pure and simple.
Unless and until someone takes command of the FAA and passes medical reform, certification reform and starts thinking outside of the proverbial box, Paula will be humming this tune from now on.
All they’d have to do to work around the medical issue is to raise the MGTOW of LSA airplanes to that of a Primary aircraft … 2750 pounds. The “old guys” who own airplanes and don’t want to get rid of them or spend $150K+ for a new LSA would be able to keep them and then would start spending money on ADS-B equipment, et al. I know this because I am one of them.
The recent certification of the Sandia Aerospace electronic horizon is an example of a product people would spend money on IF they weren’t incessantly worried about their medical status as they age. The Garmin GTR200 radio is allowed in an LSA but not in a C172 … give us all a break, FAA !! If it works, use it! So I have to spend more money on a certificated GTR225 which has less capability. Wonderful !
With so few minor changes to FAA rules, Paula would be reporting positive numbers for her industry.