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 
It has been over a year since Vladimir Putin authorized Russia's “special military operations” in Ukraine, eventually leading to what we now know as the 2022 Russian Invasion of Ukraine. The human cost of the conflict is undeniable. It is difficult to estimate the number of casualties related to this invasion; however, the most extreme estimates by U.S. general Mark Milley suggest that over 100,000 Ukrainian and over 100,000 Russian soldiers have been killed or injured. Milley’s estimates indicate that nearly 40,000 Ukrainian civilians have been killed in the conflict, while UN estimates put that number at closer to 7,000. As a result of this horrific conflict, there has been an overwhelming international response by both governmental and corporate institutions.
During the past two years, the airline industry has seen a drastic fall in revenue and air traffic due to the Covid-19 pandemic. Many hoped 2022 would bring a rise of good fortune as it predicted the spread of the virus would slow down and will lift specific covid-19 regulations. However, 2022 has brought the opposite of good luck, causing the airline industry to meltdown.
Sources
- Hoovers (Date Accessed: 6/1/2017)