Regulatory influences and government policy changes. The aerospace & defense industry remains a profitable yet challenging business. Global cuts in government spending, especially in the United States, will put significant financial pressure on companies, forcing them to realign their strategies and diversify their business models. The ongoing decrease of military operations in Iraq and Afghanistan coupled with reduced military budgets globally continue to affect revenues throughout the defense sector. The biggest challenge for defense contractors is growing profitably in a decreasing market.
Increasing globalization and emerging new markets. According to a 2012 report from Chicago-based Boeing