Despite Bombardier’s decision to delay the development of the Learjet 85 last week there are reasons to be optimistic about smaller jets. Entrepreneurial US companies, which drive small business jet demand, are becoming more confident.
In December, the NFIB Small Business Optimism Index hit 98.1. This is its highest level since February 2007 and above the 98 index average from 1974 to 2014. While it typically takes a few months of confidence above this level for orders to return, this is extremely positive news.
Another encouraging sign is the pick-up in US new pickup sales. In December, US full-size pickup sales returned to 2007 levels for the first time.
Sales of new pickups are arguably an even better guide to small business confidence; obviously most buyers of a $50,000 pickup truck cannot afford their own aircraft, but small aircraft are a similar workhorse investment for small and medium-sized businesses. These are the aircraft that NBAA’s No Plane No Gain campaign is really talking about.
So rather than being angry when a shiny pickup cuts into your lane, be grateful that you are witnessing the rise of small business confidence.
This is an extract from Corporate Jet Investor’s One Minute Week. You can sign up to receive it here