Aerospace and Defense: Introduction
Aircraft, Spacecraft, & Parts
Companies in this particular segment manufacture aircraft engines and engine parts, which also include propellers and rotors, landing gear, etc.
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
- Technical expertise
- Ability to accurately price long-term contracts
From the Blog
During the Coronavirus pandemic, few industries have been hit as hard as transportation. With the reduction in travel due to shutdowns, the airline industry has served far fewer customers. Last year, the TSA noted over two million travelers almost every single day. During March of this year, the number of travelers had been reduced to under 100,000 on some days. That is less than 5% of the same day one year prior. While there has been a slow increase over the last few months, there has not been a day with more than a million travelers since March 16th. In June, the International Air Transport Association even predicted the air transport industry to lose 84.3 billion dollars during this year alone. They state that the amount being saved in reduced costs is nowhere near the massive losses in revenue.
Commercial Space Travel has been a dream for years. Most science fiction media would tell you that it’s all aliens and fantasy—but it has become the dream of many humans to walk on the moon. The National Aeronautics and Space Administration (NASA), while usually in the spotlight when talking about space travel, is not the top organization researching private flight.
- Hoovers (Date Accessed: 6/1/2017)