Aerospace and defense firms can expect modest growth in 2014 due to continuing budget cuts in the U.S. and Europe, according to a report by Deloitte Touche Tohmatsu Ltd.
DTTL’s annual Global Aerospace and Defense Outlook report forecasts the sector will grow five percent this year which is similar to growth levels recorded in the past two years, DTTL said.
Government cutbacks may push the industry to boost revenue through new commercial ventures, synergistic acquisitions or investments in reconnaissance, intelligence and cybersecurity technology, the report states.
Tom Captain, DTTL head of the global aerospace and defense sector, predicts vendors will build more technologies for commercial aircraft, satellite communications, electronic commerce and battlefield missions and humanitarian programs over the next decade.
Aerospace firms could hit a production record this year due to an increased demand for fuel-efficient commercial aircraft and global demand for air travel, DTTL says.