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Are Defense Budgets Cratering?
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The aerospace and defense industry has been significantly affected by economic factors. The defense industry has traditionally been immune to economic downturns. However, the focus on reducing budgets due to economic conditions is now very directly impacting defense spending. This research looks at the opportunities for aerospace and defense contractors in this changed environment. There has been a record production of commercial aircraft, but business and general aviation are at a low ebb. In defense, large programs will be stretched out, resulting in each item being more expensive, but allowing continued procurement of other items. The military will also be more expeditionary with a need for “eyes and communications over the horizon”.
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