The aerospace and defence (‘A&D’) sector is currently facing a number of fundamental challenges. Within the aerospace industry, established players are experiencing increased global competition as demand shifts away from the traditional markets in the US and Europe towards the Middle East and Asia.
Meanwhile the defence industry is having to respond to an increase in global operational commitments and the rapidly changing modes of combat and nature of threats to homeland security. This has driven demand for innovative new products at the same time as defence companies are experiencing intense pressure on costs driven by real and projected cuts to defence budgets across Europe and the US.
To meet these challenges many A&D businesses are seeking to refine their operational and financial structures to ensure they are sufficiently flexible to meet the rapidly and ever changing needs of the industry, whilst still meeting the needs of the current market. Key themes include;
- Optimisation of cost structures.
- Efficiency and security of the supply chain.
- Methods of financing increased levels of R&D to drive innovation and enhance competitiveness.
- Achieving / preparing for ‘sustainable’ procurement directives.
- Expansion into emerging markets such as China, India and the UAE.
- Reviewing product offerings to either ‘fill capability gaps’ or to re-focus on core capabilities.
At Mazars we have an in depth knowledge of the sector and significant experience of advising clients who range from prime contractors to owner managed businesses further down the supply chain. Our range of services and approach is designed to challenge thought and deliver tailored, fit-for-purpose solutions to assist your business to meet the challenges the industry faces.