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News Release
Contact:
Carolyn Vadino
Public Relations
DTTL Global Communications
+1 212 436 6970
cvadino@deloitte.com
Deloitte report: Projects 5 percent growth in aerospace and defense
industry, technology innovations to dominate in 2014
Report outlines declines in defense spending, recording setting commercial aerospace production
NEW YORK, 2 January 2014— The continued decline of defense spending into 2014 will likely
force new revenue streams for the aerospace and defense (A&D) industry that may include
innovations in intelligence, precision strike technologies, and cyber security. This is according to the
Deloitte Touche Tohmatsu Limited (DTTL) 2014 Global Aerospace and Defense Outlook, which also
projects the industry to repeat a modest growth of 5 percent, mirroring the growth rate of the past two
years.
“It is anticipated that global revenues for the defense sector will track to similar levels as in the past
two years, particularly in the U.S. and Europe,” said Tom Captain, DTTL Global Aerospace and
Defense Sector Leader.
The commercial aerospace sector is expected to again set records for production of aircraft, due to the
accelerated replacement cycle of obsolete aircraft with next generation fuel-efficient aircraft, and
growing passenger travel demand, especially in the Middle East and the Asia Pacific regions.
The decline in defense spending will challenge the industry to find new sources of revenue. These
may include innovations in next generation intelligence surveillance, reconnaissance and precision
strike technologies, cyber-security, opportunities in adjacent markets, potential new commercial
ventures, and also acquisitions of synergistic businesses. On the other hand, the significant demand for
new commercial aircraft will pressure supplier networks to continuously improve its engineering
design, manufacturing and supply chain management capabilities, all the while being able to cost
effectively meet tougher price concession requirements from customers.
“As we celebrate the 110th anniversary of the Wright Brothers’ first powered flight, we are reminded
that the industry is still young, yet it has contributed much, with technology innovation at the heart of
advancements in the industry,” adds Captain. “2014 and the rest of the decade promises to deliver
even more exciting technology innovations that will focus on the way consumers travel by commercial
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aircraft, communicate via satellites, shop over the internet, conduct armed conflict when necessary,
and assist with humanitarian missions to far reaches of the globe.”
View the report at: www.deloitte.com/us/2014ADoutlook
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