Companies continue to face challenges and opportunities which will evolve with the increasing change in A&D industry structure and dynamics. Companies that adequately prepare for these challenges, take advantage of new opportunities presented and adapt to dynamic trends in the industry will be able to grow, prosper and generate attractive shareholder returns.
According to the surveyed A&D executives, M&A will be the primary driver of growth in the industry. Armed with significant amounts of cash, the industry has already begun to make investments, and this should continue in the near future. This consolidation should help companies develop new products and services and improve their competitive position. Increased deal-making should also enable A&D companies to better deal with the shrinking defense budget and help to increase their international presence.