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2019 Global Aerospace and Defense Industry Outlook
Aerospace and defense industry trends
The aerospace and defense (A&D) industry is positioned for strong, global growth. What is in store for large original equipment manufacturers (OEMs) as well as small- to mid-sized A&D companies in 2019? What changes will sustained, robust M&A activity trigger in the industry? Read about the factors driving growth in both the commercial aerospace and defense sectors in Deloitte’s 2019 Global Aerospace and Defense Outlook, a take from Robin Lineberger, Global and US Aerospace and Defense leader, Deloitte Consulting LLP.
My take: Robin Lineberger
In 2018, the global aerospace and defense (A&D) industry recuperated and experienced a solid year as passenger travel demand strengthened and global military expenditure continued to rise.1 The industry is expected to continue its growth trajectory in 2019, led by growing commercial aircraft production and strong defense spending. In the commercial aerospace sector, aircraft order backlog remains at an all-time high2 as demand for next-generation, fuel-efficient aircraft continues to surge with the rise in oil prices. With the aircraft backlog at its peak, manufacturers are expected to ramp up production rates, hence, driving growth in the sector. However, manufacturers could experience supply chain interruptions as some suppliers may struggle to increase production to keep up with the growing backlog. In the defense sector, heightened global tensions and geopolitical risks, recovery in the US defense budget, and higher defense spending by other major regional powers such as China, India, and Japan are expected to drive global defense sector growth in 2019 and beyond.3
Energy and industrials trends in 2019
To help think about what is important in the energy and industrials landscape, Deloitte’s Energy, Resources & Industrials industry leaders give their unique and individual perspectives on what to watch out for in 2019, for all segments of the Oil, Gas & Chemicals; Power & Utilities; and Industrial Products & Construction sectors. The annual release of these outlooks is timed to give food for thought as we go into a new year.
In today’s rapidly evolving marketplace environment, key business issues are converging with impacts felt across multiple industry sectors. What are the key trends, challenges, and opportunities that may affect your business and influence your strategy? Look for more perspectives and insights from some of Deloitte’s forward thinkers.
Commercial aerospace sector performance decelerates, while defense sector continues to expand
From vision to reality