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Aerospace & Defense M&A Pulse – Q3 2019

December 10, 2019

The aerospace and defense (A&D) market remains solid and robust. Strong tailwinds, excellent demand drivers, and favorable macroeconomic factors continue to propel the industry for the foreseeable future. High commercial aircraft orders, modernization and required upgrades of systems and platforms, enhanced focus and investments within cabin interiors, and increased government defense spending are some of the factors driving growth across industry segments.

Governmental protectionist actions in aluminum and steel producing nations and restrictions on some technology transfers, along with production disruptions (e.g. Boeing 737 Max), highlight supply chain risks. Effective supplier and supply chain management is crucial. Collaboration, cross-planning, and shared objectives will drive the necessary process controls and improvements while keeping costs competitive.

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The ongoing COVID-19 crisis has left a profound and potentially permanent impact on the A&D market. While the defense sector remains strong with increased spending on weapons development, aerospace is adapting to a market where both the production and aftermarket sectors will have to adjust to the current environment. Reduced demand, weakened productivity, and increased…

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Three topics have been the focus of many discussions with our clients: The disruptive effects of advanced technologies and how companies can address this, developing and managing effective supply chain dynamics, and attracting and retaining talent in an ultra-competitive job market.

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