This report examines how aerospace and defense organizations are focusing on improving their visibility into their profitability and costs, building new partnerships and focusing on new opportunities to leverage their existing products and services.
As A&D organizations come under increasing top-line and bottom-line pressure, many are now focused on improving their visibility into their profitability and costs. However, almost half of all A&D respondents admit that they are only ‘somewhat effective’ at determining their profitability and just 12 percent categorized themselves as being ‘very effective’.
With pressure mounting on A&D organizations to reduce costs and improve top-line revenues, many A&D respondents now suggest that they are building new partnerships and investing more of their revenue into R&D in order to drive bottom-line growth and enhance innovation. Investment expectations are high with three-quarters of A&D respondents saying that they would spend between 2 to 3 percent of revenues on R&D over the next two years and 16 percent saying they would spend between 4 to 5 percent.
Seeking new opportunities for growth, many A&D organizations are now focused on entering new markets and taking advantage of suitable opportunities to leverage their existing services and products into adjacent markets. Not surprisingly, this year’s survey shows that A&D organizations are struggling to adapt their supply chains to serve these potential new markets