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
The number of firearms produced and sold in the United States has continued to rise, and according to the Firearms Commerce in the US report produced by the Justice Department, the amount of firearms that are manufactured in the country have tripled since 1968. This may be alarming considering the fact that in the time it took the number of manufactured guns to triple, the US population has only grown by 35%. In 2015 alone, there were about 9,360,000 firearms manufactured in the US. Out of the 9,360,000 firearms that were manufactured in the US, only about 343,000 firearms were exported from the US in 2015, which is less than 4% of the total.
The Stockholm International Peace Research Institute (SIPRI) is an independent organization that conducts research on global security. More specifically SIPRI collects data on military expenditures and the international arms trade. SIPRI released their latest data for 2016, this Monday, February 21st.
The headline of their latest data release is that global arms trade volume has reached its highest point since the end of the Cold War in 1990. While the overall global uptick is intriguing in its own right, there are also several interesting trends at both the region and country level.
- Hoovers (Date Accessed: 6/1/2017)