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Aerospace & Defense
Delivering industry insights
Bringing deep cross-sector experience to your most complicated challenges, Deloitte's Aerospace & Defense (A&D) industry professionals have demonstrated insight extending to aerospace, commercial aircraft, business and general aviation, and defense.
- About Deloitte’s Aerospace & Defense practice
- Key issues affecting Aerospace & Defense companies
- Join the conversation
- Related topics
About Deloitte’s Aerospace & Defense practice
Deloitte is a leading presence in the A&D industry, providing services to greater than 95 percent of the Fortune 500 A&D companies through more than 1500 professionals.1
Many of our practitioners have worked in the A&D industry and/or the military prior to joining our organization and have deep industry experience across many sectors. The level of experience and connectivity of these practitioners allows us to provide insights and observations regarding the latest in commercial concepts, technology, and operating procedures in order to address client issues.
1Source: Analysis of 2019 Fortune 1000 data
Key issues affecting Aerospace & Defense companies
Economic slowdown: Similar to other industries, A&D is facing significant impact from the widespread economic downturn resulting from COVID-19. Striking the right balance between short- and long-term strategies by investing comprehensively in the future while selectively reducing costs to survive the recession could be a critical consideration for A&D companies.
Product design: Designing new products and business models remains a significant challenge for most A&D companies. It is important that companies across the industry understand and harness the power of new technologies to benefit from the opportunities of Industry 4.0 transformation. Being able to completely leverage innovative, game-changing technologies could be a matter of survival in the increasingly “disrupt or be disrupted” A&D industry.
The rise of MRO Services: Demand for commercial and military aircraft is expected to remain robust over the long-term, leading to solid growth opportunity in maintenance, repair, and overhaul (MRO) services. Leveraging advanced technologies and digital services could be critical components of driving revenues in the future within the A&D MRO evolving landscape.
Regulatory compliance: As accounting standards and business needs continue to evolve, A&D organizations face increasing complexity in meeting their financial reporting requirements from both a US and global perspective. In addition, there are key accounting, tax, and government contracting considerations related to conditions that may result from the COVID-19 pandemic as well as the CARES Act.
Program management and execution: Program delays, technical difficulties, supply chain problems, and changing requirements can lead to cost overruns and schedule delays, potentially affecting profitability. Program management and execution in the A&D industry is becoming a concern, with high stakes for all.
Talent management: Despite layoffs to reduce costs, most A&D organizations are still in need of science, technology, machinist, and engineering talent to continue to support future growth. Attracting and retaining critical talent is increasingly viewed as a top strategic issue by C-suite executives, boards of directors, and senior human resources executives.