2008 Global Aerospace & Defense Industry Performance Wrap-upStudy of the financial performance finds 2008 was a record-setting year |
Over the last few years, a number of factors have contributed to the robust financial performance of global aerospace and defense (A&D) industry. These include the resurgence of commercial aircraft and business jet sales, the global war on terror, continued productivity improvements in cost structure, substitution of technology for labor in product development and manufacturing, and the transformation of the supply chain from vertical integration to the super-supplier model. These factors, plus the retirement of debt and share buybacks that many A&D companies executed in this business cycle, indicates that they are well braced for the current economic downturn.
However, the industry is experiencing a significant challenge with aircraft order deferrals, the global credit crisis, potential cutbacks in large weapons programs and a likely transformation in the defense acquisition process.
The 2008 Global Aerospace & Defense Industry Performance Wrap-up analyzes the financial performance of the industry by assessing the key metrics of performance related to revenue growth, operating earnings and margin, asset effectiveness, cash generation and sales booking. The study revealed that 2008 was a record setting year, outpacing 2007 in industry profits and revenue. The report also predicts that the success of the A&D industry in 2009 will largely depend on:
- Successful continuance of current large scale programs under contract and backlog protection mitigation actions
- Successful business development efforts globally, in particular the Middle East and India
- Effective management of cost and schedule targets while achieving mission assurance for the customer
- Successful execution of strategic leverage in the acquisition space
- Nimbly identifying and capturing technology directions and funding for emerging defense and security priorities
Download the attached report to learn more about the study findings.
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2008 Global Aerospace &Defense Industry Performance Wrap-up
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