Aerospace and Defense: Introduction
Segments
Aircraft, Spacecraft, & Parts
Companies in this particular segment manufacture aircraft engines and engine parts, which also include propellers and rotors, landing gear, etc.
Armed Vehicles
Companies in this segment utilize armed vehicles as well as security personnel to pick up and deliver valuables.
Arms, Ammunition, Parts, and Accessories
Firearms and accessories account for nearly 60% of all industry revenue while ammunition accounts for the remaining 40%.
The Aerospace and Defense industry is Highly Concentrated. The production in this industry is dominated by a small amount of large firms that are able to shape the industry’s direction and price levels.
Primary Demand Drivers
- Military budgets
- Overall economic climate, which affects airline traffic and demand for new commercial aircraft
Profitability Drivers
- Technical expertise
- Ability to accurately price long-term contracts
From the Blog
Last Wednesday, Chinese startup company Deep Blue Aerospace announced their plans to offer space tourism flights by 2027. The company is selling the first two suborbital tickets, which cost 1.5 million yuan or 211,000 USD, in a live streaming event featuring chairman Huo Liang today, Oct. 24.
Boeing is currently facing a plethora of potential business losses, with their CEO Dave Calhoun announcing he will step down at the end of 2024. This is following continued questions and concerns about the manufacturing process after a multitude of malfunctions with Boeing products have occurred in the past couple of months.
Sources
- Hoovers (Date Accessed: 6/1/2017)