KPMG’s 2013 Global Aerospace and Defense Outlook report explores the challenges and opportunities present in today’s A&D market and offers some practical and forward-looking insight for players around the world.
Continued emphasis on managing costs
A&D executives around the world are heavily focused on reducing their cost base, with almost 80 percent of large OEM respondents saying that growth over the next two years will likely top out at two percent, it seems clear that any additional bottom line growth will need to be realized off the back of further cost reductions.
Renewed focus on the supply chain
The A&D sector will need to place a much higher focus on improving supply chain integration. Delivery delays in the aerospace sector, demand volatility in the defense sector and increasing incidences of supply chain disruptions across the board have shown that greater visibility and cooperation will be needed.
Achieving growth in new market
While cost cutting may be front and center for the A&D sector, growth also remains a key priority. Of those A&D respondents who are experiencing a resurgence in innovation, most are expecting to do this by enhancing existing product lines and services rather than focusing on breakthrough ‘disruptive’ innovation.