b"international traffic has been hit thethis year compared with 1,243 in 2019and have taken various measures to hardest and longest, twin-aisle jet- and a record high of 1,606 in 2018. sideline capacity for the midterm, liners are the most damaged avia- The 2020 figure is down becausehe said, as well as remove capac-tion segment, followed by single- some airlines are generating onlyity for the longer term. They are de-aisle jetliners, business jets and ro- 30% of their pre-pandemic reve- laying deliveries. They are declining tary-wing aircraft, he said. nue per passenger kilometer ordeliveries of aircraft that are ready. On the positive side, Abou- mile, said Robin Lineberger, U.S.They are delaying aircraft that they lafia said, defense is completelyand global aerospace and defensemay have ordered for the future unaffected. leader for Deloitte Consulting. and are not replenishing orders at He said pure-play contractors,The airlines have overcapacitythis point. The primary effect is new such as Lockheed Martin Corp. and Northrop Grumman Corp., and sup-pliers with the most defense busi-ness are in the best shape.Ways that COVID-19 has affected manufacturersSales are down 44%Cost of materials and components have increased 41%Our production lead times have lengthened 41%Product launches have been delayed or canceled 41%Weve had to lay off good employees 36% Mike Estes OD GrinderIts been more difficult to secure financing 29%R&D and innovation budgets have been cut 27%We've been unable to fill customer orders 24%COVID-19 has not negatively impacted our business 11%0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%Fictiv Ifanything,Aboulafiasaid, defense is getting a bit of a boostWHEN The AMAMCO Tool Double Margin Drill as people throw cash at the indus- makes the holes to install aircraft try in that direction. Of course, thatLIVESdoesnt make up for the terribleengines, landing gear, and door downturn on the commercial side. DEPEN D \x1fxtures. Everyone at AMAMCO Tool Commercial aircraft deliveries areunderstands the need to get it right. expected to experience a year-over- ON IT.year decline of 46% in 2020, accord- Every time.6ing to analysis by New York City- Let us develop a tool for yourbased consultancy Deloitte Con- critical drilling application.sulting LLP, the International Air Transport Association and commer-cial aircraft manufacturers. As a re-sult, the industry is anticipated to de- 800.833.2239 www.amamcotool.comliver about 670 commercial aircraft ctemag.com/cteguide.com19Outlook.indd 19 11/13/20 11:41 AM"