Aviation – a $10Bn business

Aviation – a $10Bn business

 
Exciting research on our sector out today confirms aviation contributes $10Bn to the New Zealand economy; has grown at 9% per annum over the last five years and employs well over 23,500 people.  The results are the first of three critical strategic projects the industry has underway at the present time.  Restructuring industry representation to maximise its potential will be considered at our forthcoming conference week in Palmerston North at the end of July and the third project the ATTTO lead aviation strategic training plan and map of provision to be concluded in October    
 
Headlines
 
1 The sector contributed $9.7b in revenue, including $3.8b in export activities, in 2009.  The sector’s turnover accounted for 6.9% of GDP. 
 
2. Aviations $3.8Bn exports we are a more significant contributor than ……Wine - $1.0b, seafood - $1.2b, horticulture - $2.0b;marine Industry Association reports exports of $0.5b.
 
3.Growth potential between 5-9% per annum…….The report forecasts conservative growth to $12.6b with exports of $5.1b in 2015, with a more optimistic forecast of growth to $14.7b and exports of $6.2b.  Even the conservative forecast suggests 5.3% annual growth (6.3% for exports).  The aviation industry, using the conservative forecasts, could grow by a total 29.7% over the 5 years (optimistic export growth totalling 35.6%).  There is significant ‘headroom to grow’.
 
4.High value add and rapidly improving productivity…..productivity grew from an average $366,700 per employee in 2005 to $456,861 in 2008 or by 25% (more recent calculations not provided).  During this time, the average salary per employee increased from $69,738 to $79,489 or by 14%.
 
5.Aviation enables improved performance in other sectors of the economy…..The aviation sector aids the diversity and economic performance or a number of sectors including tourism, agriculture, horticulture, forestry, surveillance, search and rescue.
 
6Diversity.of industry….the sector is made up of a variety of sub sectors which are of different sizes and with varying future potential.  There are over 1000 businesses in the sector
 
7.The aviation sector is innovative with considerable new potential….Jim McCoy, a multi-careerentrepreneur, venture investor and business development executive based in California commented after spending 21 to 25 June in New Zealand and visiting a number of aviation companies: ‘This represents, again, a higher level of aviation activity both in-total and per capita than many much larger nations.’
 
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