Aerospace

The Aerospace Industries Association, which represents the nation's major aerospace manufacturers including the five largest military contractors, projects a 4.8% increase in U.S. aerospace sales in 2009. According to the Association, 2009 orders are locked in with financing mostly in place, alleviating concerns that the tight credit market will hurt revenues during the year. In addition, sales of military aircraft including fighters, transports and helicopters, should rise in 2009 by approximately $2.3 billion or 4.2% to $57 billion. Civil aircraft sales are also projected to increase by 7.4% to $86.6 billion.

Global Industries Analysts, Inc. states that the U.S. is by far the world's largest aerospace and defense market, with revenues projected to be worth $298 billion by 2015. Together, the U.S. and Europe account for more than 80% of the world's aerospace and defense revenues. Aircraft products and services represent the largest product segment and are projected to exceed $350 by 2014.

Energy

Over the past seven years, venture capital investments have increased from less than 1% to nearly 10% and that trend is likely to continue throughout 2009 and into the next decade. In the U.S. alone, venture capital investments have reached $2.4 billion over the past year.

Within the next few months, President-elect Obama is expected to introduce an economic stimulus package estimated to be in the $500 billion range. Within that package, an estimated $15 billion would be targeted toward green energy initiatives.

Clean Edge Research predicts that global markets for biofuels will grow from $20.6 billion in 2006 to $80.9 billion by 2016. Furthermore, wind power is projected to expand from $17.9 billion in 2006 to $60.8 billion in 2016. Solar photovoltaics (including modules, system components and installation) will grow from a $15.6 billion industry in 2006 to $69.3 billion by 2016. And the fuel cell and distributed hydrogen market will grow from a $1.4 billion industry to $15.6 billion over the next decade.

The American Wind Energy Association (AWEA) indicates a need to ramp up capacity installations to 16,000 megawatts annually by 2018 and continue at that rate through 2030. To reach this level of production, more than 75,000 new turbines must be installed in the coming decades. This is more than triple the amount of wind energy added to the grid in 2007. This will require expansion of the wind power supply chain, which draws on a wide variety of domestic industries such as:

• Component Manufacturing - Electrical, Mechanical, Fabrication, Other Sub-components
• Commodities - Fasteners, Connectors, Other Electrical and Mechanical
• Base Industry Components - Castings, Forgings, Rolled Steel, Resins, Woven Glass
• Turbine Manufacturing Components - Composites, General Assembly, Tower Manufacturing
• Transportation & Construction - Cranes, Specialized Transport
• Operation & Maintenance - Operations & Monitoring, Maintenance and Repair, Asset Management

The AWEA further reports that there are 8,000 components in a modern wind turbine, ranging from steel towers and high-tech composites for blades to gearboxes, gears, bearings, electrical wiring, power electronics and more. To date, the share of domestically-manufactured wind turbine components is approximately 50%, up from 30% in 2005.

Medical

The U.S. medical device manufacturing sector will achieve a 9% growth rate in 2008 and by all indications, will remain a robust manufacturing industry throughout 2009 and beyond. In fact, over the past decade, medical device manufacturers in the U.S. have posted a constant growth rate of 8% at profit levels that surpass all other OEM sectors. In particular, the orthopedic and cardiovascular sectors have achieved double-digit growth over the past five years.

According to the Centers for Disease Control and Prevention (CDC), the proportion of the U.S. population over 65 years old is projected to increase from 12.4% in 2000 to 19.6% by 2030. Add that factor to the increased prevalence of unhealthy lifestyle choices such as poor eating habits and sedentary daily routines, more and more Americans are going to require medical devices over time. On a global basis, the over-65 population is expected to grow from 6.9% to 12.0%. Because older people are more at risk for a variety of medical conditions (osteoporosis, heart disease, various cancers, gastrointestinal ailments, and others) the global medical technology market will continue to expand. This is of particular interest because 50% of all medical devices used worldwide are produced in the U.S.

Global Industry Analysts Inc. projects that by 2015, the global market for orthopedic instrumentation will reach $54.5 billion. With an increase in life expectancy rates, the number of joint replacement procedures has reported significant growth. Sports-related injuries in the younger generation, coupled with the growing popularity of minimal invasive surgery are fueling the demand for joint replacement surgeries. Medical device companies are now focusing on advanced materials and technologies in the field of orthopedic implants to address the emerging requirements of an aging population and active youth.

Another area within the medical device market targeted for huge growth throughout 2009 and beyond is the home healthcare equipment market. Healthcare equipment like Continuous Positive Airway Pressure (CPAP) Devices, nebulizers, drug delivery devices, digital signal processing hearing aids, glucose monitoring systems and self-test (IVD) devices are projecting high single-digit to double-digit growth within the next five years. The global market for home healthcare devices is projected to grow by more than 9% from 2007 to 2012 with the market exceeding $70 billion in 2012.

Consideration should also be given to the global dental market. According to a new technical market research report, The Dental Market Techniques, Equipment & Materials (HLC028C) from BCC Research, the global dental market is expected to reach $7.9 billion in 2008. This should increase to nearly $10.0 billion by 2013, a compound annual growth rate of 4.7%. The dental equipment and supplies segment is expected to grow at a 5.8% compounded annual growth rate to reach $4.2 billion in 2013.