PwC Commentary: Where A&D Companies Should Focus

By Scott Thompson , Michael Finley
Source: Aviation Week & Space Technology

•Supply Chain—While the A&D supply chain may be the most complex of any industry, companies should no longer accept long lead times and marginal performance. Improved performance and just-in-time delivery are essential.

•Globalization—The Asia-Pacific region is expected to see more aircraft deliveries over the next 20 years than North America and Europe combined. Companies should evaluate the best ways to gain a competitive advantage in these markets in both commercial and defense segments.

•Cybersecurity—Companies should prepare for the increased focus and regulation that are heading toward this field.

•Regulation—A&D companies are facing myriad new regulations and increased enforcement. Companies may wish to seek regulation reform, but at the same time should develop more efficient and effective means of compliance.

Defense companies that embrace the affordability challenge and commercial aerospace companies that can most effectively manage high growth rates, likely will be the top-performing companies of the future.

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