Deloitte 2013 Aerospace and Defense Outlook
New Delhi, 10 January 2013: According to the 2013 Global Aerospace and Defense Outlook launched today by Deloitte, the global defense 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 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,” said Tom Captain, vice chairman and U.S. and Global Aerospace and Defense (A&D) leader, Deloitte LLP.
Tom Captain continued, “However, 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, “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. She said, “Due to the huge offset requirement and the Indian Government’s objective of building up an indigenous manufacturing base, the global industry has an opportunity to integrate with the Indian industry to set up their manufacturing lines in India. This could be achieved either through joint ventures or collaborations.”
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 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.
“Continued innovations that are the hallmark of this industry should power the next generation of technology development that can contribute to safer, more fuel efficient aircraft, as well as more capable weapons to help keep our war fighters out of harm’s way,” added Captain.
Notes to the editor
This press release has been given by Deloitte Touche Tohmastu India Private Limited
© 2013 Deloitte Touche Tohmatsu India Private Limited
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