Aerospace Defense Industry

Topics: Boeing, Federal government of the United States, Lockheed Martin Pages: 11 (3581 words) Published: December 18, 2012
Question 1
The Aerospace defense industry is huge industry that spans the entire world. Aerospace defense technology has been known to be a key innovator in today’s technologies for example the space race was a huge factor in computer technology that NASA developed and solar energy Even though it is commonly referred to as the Defense industry it obviously produces more offensive weapons. The major countries in the world that are involved in the Aerospace defense industry would be the USA with companies such as Lockheed Martin and Northrop Grumman Russia’s biggest Aerospace defense companies are, Almaz-Antey and United Aircraft Corporation.

These two countries have a great majority share on sales of worldwide Aerospace or just Defense related weaponry greatly outpacing the rest of the globe. See table for more information on countries with top Aerospace/Defense exports in millions US$ globally

The current outlook for the Aerospace industry in the USA could be described as bleak, with major budget cutbacks and the war in Afghanistan winding down there is currently little need for more increased spending. It has been estimated that if the USA is to make another trillion dollar in defense cuts that one million jobs would be lost, that being said there are huge opportunity abroad for the A&D also known as aerospace and defense. However not all is doom and gloom in emerging economies such as Brazil that have doubled their air force budget are key consumers for the A&D industry China is also increasing its defense capitalization, expanding its submarine fleet and developing its first aircraft carrier, purchased from Russia.

Global defense spending is expected to be flat to declining in 2012, mostly made up of reductions in the U.S., United Kingdom (UK), and the rest of Europe, offset with Increases, principally in China, India, Kingdom of Saudi Arabia, the United Arab Emirates (UAE), Japan, and Brazil. In 2010, global defense spending, inclusive of armed forces personnel, was estimated to be US$1.6 trillion, with the U.S. the leader by order of magnitude, ahead of second place China, followed by the UK, France, and Russia

The key players in the A&D industry are American, In the top ten A&D companies based on sales and size seven companies are American, one is Italian, one is British and one is a consortium of multiple European companies that merged. So it is fair to say that the A&D industry is primarily American so the top American companies are competing amongst them amongst them self’s for National or International contracts. However there is one Major Company by the name of EADS short for European Aeronautic Defence and Space Company, they rank in number two of the top ten largest A&D companies however they are not as profitable as the American companies.

Globaly the top three competitors in revenues are discussed below. 1. The Boeing Company:
Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems, founded in 1916 in the Puget Sound region of Washington State. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries, with total revenue of $68.7 billion in 2011. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. With corporate offices in Chicago, Boeing employs more than 170,000 people across the United States and in 70 countries. Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. Approximately 60% of Boeing's sales originate in the Americas and the US government accounts for about 80% of the company's space and security revenues. 2. European Aeronautic Defence and Space Company (EADS):

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