Major aerospace & defense firms are seeking to expand beyond traditional NATO markets to shore up their bottom lines in the coming years. This past summer, Avascent and FleishmanHillard conducted a survey of more than 350 A&D executives who commented on internal strategies, global markets, international competition, and their expectations of support from Washington.
By adding transparency and further streamlining the FMS and exportability processes, government can help industry increase its responsiveness and flexibility. This will enable industry to achieve the nimbleness required to address new competitive threats.”
Although some firms have reorganized their international business development and sales support teams, only about 25% of survey respondents perform consistent evaluation of international markets. This should be a key strategy point; traditional markets such as the UK, Canada, and the MENA region are responding to lower cost substitutes from suppliers outside the US. China, Israel, South Korea, Brazil, Turkey, and Russia all have competitive products on the global defense market, and some can offer tech transfers, or more sophisticated systems than the US can currently export. Meanwhile, emerging markets, such as India, Brazil, South Korea and Poland, have unique and often frustrating acquisitions processes by which US firms might convert defense requirements into sales. Support from Washington is key, and government officials are currently trying to improve Foreign Military Sales (FMS) procedures and export control burdens, but executives are skeptical about major changes in the near term.
Click here to read: “Concern Grows About International Aerospace, Defense Competitiveness.”