Business

January 5, 2014

Deloitte report: Projects five percent growth in aerospace, defense industry, technology innovations to dominate in 2014

The continued decline of defense spending  into 2014 will likely force new revenue streams for the aerospace and defense industry that may include innovations in intelligence, precision strike technologies, and cyber security.

This is according to the Deloitte Touche Tohmatsu Limited 2014 Global Aerospace and Defense Outlook , which also projects the industry to repeat a modest growth of 5 percent, mirroring the growth rate of the past two years.

“It is anticipated that global revenues for the defense sector will track to similar levels as in the past two years, particularly in the U.S. and Europe,” said Tom Captain, DTTL Global Aerospace and Defense sector leader.

The commercial aerospace sector is expected to again set records for production of aircraft, due to the accelerated replacement cycle of obsolete aircraft with next generation fuel-efficient aircraft, and growing passenger travel demand, especially in the Middle East and the Asia Pacific regions.

The decline in defense spending will challenge the industry to find new sources of revenue.  These may include innovations in next generation intelligence surveillance, reconnaissance and precision strike technologies, cyber-security, opportunities in adjacent markets, potential new commercial ventures, and also acquisitions of synergistic businesses. On the other hand, the significant demand for new commercial aircraft will pressure supplier networks to continuously improve its engineering design, manufacturing and supply chain management capabilities, all the while being able to cost effectively meet tougher price concession requirements from customers.

“As we celebrate the 110th anniversary of the Wright Brothers’ first powered flight, we are reminded that the industry is still young, yet it has contributed much, with technology innovation at the heart of advancements in the industry,” adds Captain. “2014 and the rest of the decade promises to deliver even more exciting technology innovations that will focus on the way consumers travel by commercial aircraft, communicate via satellites, shop over the internet, conduct armed conflict when necessary, and assist with humanitarian missions to far reaches of the globe.”

View the report at www.deloitte.com/us/2014ADoutlook.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines September 19, 2014

News: McKeon on broader military authorization: Anything can ‘fail or pass’ - Rep. Howard “Buck” McKeon, R-Calif., chairman of the House Armed Services Committee, said if Congress returns after the midterm elections to weigh a broader military authorization for the battle against Islamic State, it might not pass. Defense contractor gets 7 years for giving secrets...
 
 

News Briefs September 19, 2014

U.S. military deaths in Afghanistan at 2,203 As of Sept. 16, 2014, at least 2,203 members of the U.S. military had died in Afghanistan as a result of the U.S.-led invasion of Afghanistan in late 2001, according to an Associated Press count. At least 1,823 military service members have died in Afghanistan as a result...
 
 

Pratt & Whitney, U.S. Air Force complete qualification for F135 engine testing

Pratt & Whitney, a United Technologies Corp. , together with its U.S. Air Force partner at the F135 Heavy Maintenance Center at Tinker Air Force Base, Okla., celebrated another significant milestone qualification for F135 engine testing at the Oklahoma City Air Logistics Complex. OC-ALC which in addition to engine testing is also qualified to perform...
 

 
Navy photograph

Triton has first cross-country flight from Palmdale

Northrop Grumman photograph The MQ-4C Triton Unmanned Aircraft System takes off from Northrop Grummanís Palmdale, Calif., facility Sept. 17 for its first cross-country flight to Naval Air Station Patuxent, River, Md. PALMDALE,...
 
 
Air Force photograph by Michael J. Pausic

Future of NATO: Adapting to a new security environment

Air Force photograph by Michael J. Pausic Gen. Phillip Breedlove informs the assembled crowd about the results of the recent NATO Summit and the areas of instability that affect Europe that have regional implications. Seated in...
 
 
Air Force photograph by Scott M. Ash

AFRL commander describes Air Force’s technology vision

Air Force photograph by Scott M. Ash Maj. Gen. Thomas Masiello takes a question from an audience member after discussing Air Force Research Laboratory breakthrough technologies during the 2014 Air Force Association’s Air ...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>