Aerospace industry forecasts growth.

After two years of falling profits in the Canadian aerospace industry, and despite highly-publicized concerns in the industry, profit levels are expected to increase from less than $1 billion in 2004 to $1.3 billion in 2005, according to The Conference Board's Canadian Industrial Outlook: Canada's

"A combination of increasing revenues and stringent cost cutting by major Canadian companies will send profits on an upward trend beginning in 2005, and higher profitability will continue into the medium term," said Louis Theriault, associate director of Canadian Industrial Outlook Service.

Much of the uncertainty in the Canadian aerospace industry stems from the ongoing restructuring of the worldwide airline industry. The outlook assumes that the current turmoil will eventually lead to more stable and profitable carriers, especially in the U.S.

Although the regional jet market remains uncertain, a more stable airline industry is expected to translate into firm orders for parts and propulsion systems. As a result, the aerospace industry can expect revenue growth of 12.5% in 2005, and profits to increase by $300 million in 2005.

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