Deloitte has released a new report that identifies opportunities for defense contractors operating in today’s shifting global marketplace.
The report “Defense – New Realities, Innovative Response” draws upon the expertise of three senior retired military general officers who now consult to Deloitte: Gen (USAF ret.) Chuck Wald, Lt. Gen. (USAF ret.) Harry D. Raduege and Lt. Gen. (USA ret.) Pete Cuviello.
“The security threats the world faces today are more complex and diverse than ever before,” said Tom Captain, vice chairman and Deloitte’s aerospace & defense sector leader. “There is a shift underway in how the U.S. military plans, organizes and equips for battle – along with an increasing pressure to make every defense dollar count. This environment will create opportunities for those contractors that can help the military find improvements that save money, increase flexibility and improve efficiency.”
According to the Deloitte report, inflexible, non-modifiable systems will be difficult to justify and unlikely to compete for the Department of Defense or international dollars. However, it identifies five key areas for significant growth in the A&D sector, including ISR, cybersecurity, government services and IT, business process improvement and globalization and international markets
“Bipartisan concerns over the federal deficit will likely have a significant adverse impact on the defense budget, but there are opportunities for contractors to help the military improve during these challenging budget times,” Wald said. “We believe there will be growth opportunities and that innovative and successful contractors will provide solutions that are affordable, flexible and interoperable in these areas.”
Other key findings from the report focusing specifically on the international arena include:
- International markets will often mirror U.S. DoD acquisition strategies, especially where nations are philosophically and doctrinally aligned with the United States
- The United States will encourage like-minded nations to acquire U.S. produced equipment and technology as part of the U.S. strategy to develop partner capacity and to fight in coalitions.
- A&D industry companies intending to expand their market share through international sales will require an in-depth knowledge of the unique regulatory, cultural and International Traffic in Arms Regulation licensing requirements in the global market.