Dynamic market forces such as globalization, technology advancements, declining defense budgets, economic power shift towards growth markets, mergers, acquisitions, and divestitures in the industry are forcing transformation upon both large and small A&D companies. This transformation is being driven by three industry-wide imperatives: manage development complexity to improve engineering efficiency, grow the top line through differentiated aftermarket services and build and optimize dynamic value chains. Extreme engineering continues to drive new designs, materials, suppler relationships and supply chain structures.
As with many industries, the aerospace and defense industry continues to increase the amount of work outsourced to suppliers, from manufacturing of components to the building of modules and sub-assemblies. This trend has resulted in a very complex supply chain, making customers increasingly dependent upon their supplier’s ability to manage their sub-tiers.