2016 global aerospace and defense sector poised to resume growth
This is according to the Deloitte Touche Tohmatsu Limited (Deloitte Global) Consumer & Industrial Products Industry group’s 2016 Global aerospace and defense sector outlook.
This positive signal follows years of declining revenue growth of 3.2 percent in 2013, 1.9 percent growth in 2014, and an expected decline of minus 0.5 percent in 2015 as found by Deloitte Global in its 2015 Global aerospace and defense sector financial performance study.
Over the last three years, global A&D industry revenue was largely impacted by decreased revenues in the United States (US) defense subsector.
The return to growth in 2016 is expected to be fueled by increases in the US defense budget, a resurgence of global security threats, and growth in defense budgets of key nations around the world.
In addition, relatively stable growth in global gross domestic product (GDP), lower crude oil and other commodity prices, and continued increases in passenger travel demand are contributing to expected growth in production rates for next-generation commercial aircraft. ■