Not to overstate the subject of COVID-19, but the impact it’s played on the aerospace and defense landscape can’t be ignored.
Like most industries, the commercial aerospace industry has been altered and hampered by the pandemic. Whereas interestingly, the defense industry has continued with its steady growth, despite current challenges.
A recent report from Deloitte examines the A&D industry landscape while predicting where things could end up in the future.
Read below for some key takeaways from this report:
The Defense Industry Is Steadily on the Rise
Currently, there are rising global security concerns. This outlook has catalyzed a worldwide focus on military modernization. Therefore, the demand for defense equipment is steadily increasing all over the world.
Due to the uncertainty and sustained complexity of international security, expect global defense spending to continue elevating over the next half-decade. In fact, there’s a 3% compound annual growth rate expected to occur from 2019 to 2023—amounting to $2.1 trillion at the end of this period.
Joining the US administration in bolstering their military via defense spending in 2020 are other superpowers. Namely, expect China, Russia, and India to mirror the US in defense equipment spending.
A continued spike in global defense spending is conducive to a thriving job market throughout the sector. For instance, defense contractors and supply chains will be teeming with available opportunities.
Even Before COVID-19, Aerospace Was on the Decline
Even back in 2019, the commercial aerospace sector saw a sizable decline in deliveries.
Primarily, production-related issues in specific aircraft models spearheaded this downturn. Beyond that, compared to peak levels in 2018, where approximately 14,700 aircrafts were built, the only 14,000 aircrafts filling this space by August 2019 was underwhelming.
Order cancellations and decreases in new orders are at the heart of this growing problem.
Before the pandemic, commercial aerospace sector growth was predicted to recuperate from its fall from grace in 2020. And it was expected that this success would sustain itself over the long-term. Mostly since – at the time – commercial aircraft demand was plentiful, with approximately 40,000 units estimated to be produced over the next twenty years.
Unfortunately, these projections have come to a screeching halt. Still, we should expect things to recover in this sector once commercial travel becomes less murky.
Technological Innovations in the Aerospace and Defense Industry
Expect the following technological innovations to occur throughout the A&D industry:
Electric Propulsion Aircraft
Technology is evolving to the point that multiple companies across the world are developing electric propulsion systems. This trend will only continue to increase as more businesses look for profitable ways to reduce carbon emissions, make flights quieter, and boost efficiencies.
Urban Air Mobility
Streamlining the development of this technology necessitates the following:
- Regulations for pilotless vehicles
- Airworthiness certifications
- The use of airspace
- Other technological challenges must be addressed to successfully implement efficient energy management systems, onboard sensors, collision detection systems, etc.
Automatic Flight Deck
The commercial aerospace sector intends to move toward 100% automated flight decks.
Pandemic or Not – Top Talent will Drive Productivity
Regardless of COVID-19-related challenges, there are still vast production requirements in the A&D industry.
After all, the defense industry is still thriving, and aerospace won’t be slowed down forever. Yes, A&D companies must adopt new and advanced manufacturing technologies. This is the only way to meet rising customer demands with delivery schedules and customization.
However, most crucial is hiring the top talent capable of leveraging the new-fangled, increasingly complex technology throughout the A&D industry.
On that note, the perfect place to start your search for top performers in this sphere is at US Tech Solutions.