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 
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.
The Space Race was one of the most defining moments of the 20th century. Over the past few years, countries from all over the world have ramped up their space programs. In August 2023, India became the first nation to land near the Moon’s southern pole. Recently, NASA’s future moon mission has been moved back to 2025, leaving the lead for space exploration open to the many government-funded or private space programs.
Sources
- Hoovers (Date Accessed: 6/1/2017)