Critical Read

Commercial aerospace up, defense down

question mark made of dollar

What: Deloitte's 2014 Global Aerospace and Defense Outlook

Why: The annual report analyzes key trends and makes predictions in the aerospace and defense markets, including commercial airline and space travel, investment in aircraft and military equipment, the global supply chain and market competition.

In this year's report, Deloitte predicts revenue growth in the 5 percent range for 2014, similar to the previous two years. In all three years, the growth is attributed "to the rising fortunes of the commercial aerospace sector." Defense declines are attributed to the drawdown in Iraq and Afghanistan, as well as concerns about the affordability of the traditional military. Some growth will trickle from defense spending in other countries, including India, China, Russia, South Korea, Brazil and Japan, where governments are boosting military spending, but it likely won't be enough to reverse the overall decline.

Verbatim: "Over the next decade...commercial aircraft annual production levels are anticipated to increase significantly by an estimated 25 percent. With such growth expected, there are two significant trends and challenges to consider: the entrance of new global competitors to the existing duopoly,  and the impact on the supply chain."

"The government customers of global defense companies continue to be challenged with affordability and competing domestic priorities. ... The global defense industry in 2014 and beyond will be challenged in two major ways: how to grow profitability in a declining market and what actions are necessary to cut costs to maintain acceptable financial performance."

About the Author

Amber Corrin is a former staff writer for FCW and Defense Systems.

The Fed 100

Save the date for 28th annual Federal 100 Awards Gala.

Featured

  • computer network

    How Einstein changes the way government does business

    The Department of Commerce is revising its confidentiality agreement for statistical data survey respondents to reflect the fact that the Department of Homeland Security could see some of that data if it is captured by the Einstein system.

  • Defense Secretary Jim Mattis. Army photo by Monica King. Jan. 26, 2017.

    Mattis mulls consolidation in IT, cyber

    In a Feb. 17 memo, Defense Secretary Jim Mattis told senior leadership to establish teams to look for duplication across the armed services in business operations, including in IT and cybersecurity.

  • Image from Shutterstock.com

    DHS vague on rules for election aid, say states

    State election officials had more questions than answers after a Department of Homeland Security presentation on the designation of election systems as critical U.S. infrastructure.

  • Org Chart Stock Art - Shutterstock

    How the hiring freeze targets millennials

    The government desperately needs younger talent to replace an aging workforce, and experts say that a freeze on hiring doesn't help.

  • Shutterstock image: healthcare digital interface.

    VA moves ahead with homegrown scheduling IT

    The Department of Veterans Affairs will test an internally developed scheduling module at primary care sites nationwide to see if it's ready to service the entire agency.

  • Shutterstock images (honglouwawa & 0beron): Bitcoin image overlay replaced with a dollar sign on a hardware circuit.

    MGT Act poised for a comeback

    After missing in the last Congress, drafters of a bill to encourage cloud adoption are looking for a new plan.

Reader comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group