Energy: Competition Between Boeing and Airbus Heats Up
Industry Focus
The Motley Fool
4.6 • 854 Ratings
🗓️ 8 February 2018
⏱️ 22 minutes
🧾️ Download transcript
Summary
2017 was a record setting delivery year for both planemakers. With upwards of 8-year backlogs investors are paying close attention to on-time delivery numbers and, by this metric, one of the two takes the win.
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Transcript
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| 0:00.0 | Thanks to Audible for supporting Industry Focus. For a free audiobook with a 30 day free trial go to audible.com forward slash fall or tax fall to 500, 500. |
| 0:09.0 | Welcome to Industry Focus, the show that dives into a different sector of the stock market every day. |
| 0:15.6 | Today we're talking energy and industrials. It is Thursday the 8th of February. |
| 0:19.8 | And today we're going to be talking about plane makers, specifically Airbus and Boeing. |
| 0:23.6 | I'm your host Sarah Priestley and joining me on Skype all the way from sunny California |
| 0:28.4 | is senior Motley Fool contributor Adam Levine Weinberg. |
| 0:30.9 | Adam thank you for joining me. How you doing? |
| 0:33.0 | Very good. |
| 0:34.0 | Thanks for having me on this show. |
| 0:35.0 | No, your expertise are needed in this industry. |
| 0:39.0 | So today we're going to be talking about the big two plane makers, Boeing and Airbus. |
| 0:43.0 | Together these two make up the majority of the 140 billion dollar industry, which is just |
| 0:48.0 | huge and the market is pretty fascinating right now thanks to a few factors. |
| 0:52.2 | Growing demand from the Asia-Pacific region, low interest |
| 0:54.9 | rates, and as such is enjoying really high demand, and this is creating all kinds of pressure |
| 1:00.7 | on the manufacturers and their supply chains. |
| 1:03.0 | So by the end of the decade, Airbus and Boeing |
| 1:05.3 | have to build 13 more planes annually |
| 1:07.3 | to meet existing orders. |
| 1:08.4 | And this is the industry's steepest production increase |
| 1:11.2 | since World War II, which is incredible. How did they |
| 1:14.2 | hold up in 2017, Adam? So last year we did see another record year of output for |
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