Aerospace & defense cross-border joint ventures
Managing high complexity, driving remarkable growth
While the shrinking defence budgets in the US and Europe coupled with the robust backlog in commercial aerospace are front and centre in the Aerospace & Defence (A&D) industry today, vibrant growth in the form of cross-border joint ventures across new centres of excellence is quietly laying the framework for the long term direction of the A&D sector. Business planning for these joint ventures will potentially demand executives understand a level of complexity that is relatively rare in other industries. Some considerations include:
- Nation-state geopolitical alliances
- Technology transfer and protection
- The value of joint venture partner contributions
- Dispute remediation
This paper highlights emerging trends in the global A&D industry for capital formation broadly, and as they apply to cross-border joint ventures in particular. Capital formation trends are examined based on the level of debt and equity capital raising in global capital markets by the A&D industry. These trends indicate the shifts in A&D industry dynamics. The key factors examined in this paper will be critical for creating long term value for the A&D cross-border joint ventures.
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