By Rob Starr, Content Manager, Big4.com
The global defense industry’s revenue will likely continue to slide as a result of cuts in military spending, according to the 2013 Global Aerospace and Defense Outlook by Deloitte.
The combined revenues for the A&D industry will increase modestly in 2013 given large increases in global revenues for commercial aerospace, coupled with declines in defense spending. The balance of defense and commercial production activity should provide the diversification the A&D industry may need to continue to thrive and grow next year.
Tom Captain, vice chairman and U.S. and Global Aerospace and Defense (A&D) leader, Deloitte LLP comments:
“The global defense industry should expect to see more aggressive competition for fewer large defense programs. Renewed foreign military sales efforts into new geographic markets that face increasing national security threats should offset part of the decline,” he said.
He also said that in contrast to cuts in defense 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. In the commercial aircraft sector, expect to see 2013 continue with the trend of global production levels above 1,000 aircraft per year for the third year in a row.
Nidhi Goyal, Director, Deloitte Touche Tohmatsu India Private Limited added that The global defense industry can take advantage of the promising Indian A&D market owing to the increasing demand of A&D equipment by the armed forces.