UPI | Problems ahead for aerospace industries
June 13, 2011 § Leave a comment
Published: June 8, 2011 at 2:23 PM
NEW YORK, June 8 (UPI) — Analysts say worldwide aerospace and defense industries in the next few years will face unprecedented pressures.
In the civilian sector, these include an anticipated 25 percent increase in commercial-aircraft orders for deliveries by 2014, while the defense sector worldwide is facing declining budgets.
Global business-advisory firm AlixPartners highlighted the problems in a recently issued study.
AlixPartners Managing Director and co-leader of the firm’s Global Aerospace and Defense Practice David Fitzpatrick said: “While bruised, the aerospace and defense industry emerged from the economic downturn in better shape than most industries, due largely to increased demand in the defense sector, plus some petty vigilant cost-cutting overall.
“However, the industry now faces the ‘big squeeze’ — the contradictory challenge of quickly ramping up production for expected growth in the commercial sector coupled with the need to address expected cuts and therefore a sharpened focus on affordability in the defense sector. And those squeezed the most will be the supply chain.”