We have a good understanding of the issues facing the Aerospace and Defence Sector and we have worked with some of the industry’s major players such as AgustaWestland and Chemring Technology to develop their managers to inspire and engage their people to improve the business’ performance and drive competitive advantage.
The Aerospace and Defence market is in a state of flux offering both challenges and opportunities. On one hand, there are shrinking defence budgets, an increasingly aggressive competitor set, and riskier market conditions, yet on the other hand there are opportunities such as the increasing demand for air travel (and hence aircraft) in the emerging economies.
The UK aerospace industry is the biggest in Europe and second largest in the world, with the UK defence industry being the second biggest exporter of defence products and services outside of the US. It is estimated that the defence industry has a turnover of around £35bn and employs 300,000 people in the UK. In addition, the sector has a wider economic impact as studies show that the industry generates significant pull through of demand for key goods and services from other parts of the UK economy.
Drivers for change in the sector include:
Reduced defence budgets will force companies to dramatically change their business operating models and processes.
Shrinking budgets and new constraints in pricing may affect mid-tier suppliers that cannot survive the smaller margins and increased cost of business and the sector is likely to experience a wave of mergers and acquisitions.
Being able to execute “what’s good enough” while maintaining assurance will become more important than delivering ‘the best defence product/service’.
With domestic defence budgets shrinking and demand for commercial aircraft and defence products rising in developing countries, some companies may need to make more of a shift to commercial product lines.In both defence and commercial aircraft, the pressure is likely to be for more affordable products that perhaps have fewer features.
- Further environmental pressures and legislation will mean companies will need to continue to make changes to aircraft design to further reduce emissions and noise pollution.
We can train and develop your leaders to manage these strategic challenges. We have the necessary skills and experience to understand your business and its strategic direction to deliver training and development interventions that will deliver significant bsuiness benefits. To learn more about our work in this sector and the impact we have had read our AgustaWestland case study. Alternatively see how our other clients have benefited from our support by visiting What Our Clients Say.