By Rob Starr, Content Manager, Big4.com
According to the 2013 Global aerospace and defence outlook launched by Deloitte recently , the global defence industry’s revenue will likely continue to slide as a result of cuts in military spending, while the commercial aircraft industry will likely have record revenues in the coming year.
The overall combined revenues for the A&D industry are expected to increase modestly in 2013 given large increases in global revenues for commercial aerospace, coupled with declines in defence spending. The balance of defence and commercial production activity should provide the diversification the A&D industry may need to continue to thrive and grow next year.
However, in contrast to cuts in defence spending, the commercial aerospace sector is expected to reach record levels of revenue in 2013 as a result of increased production rates and the introduction of next generation aircraft.
“The global defence industry should expect to see more aggressive competition for fewer large defence programs. Renewed foreign military sales efforts into new geographic markets that face increasing national security threats should offset part of the decline,” said Tom Captain, vice chairman and U.S. and Global Aerospace and Defence (A&D) leader, Deloitte LLP.