Deloitte predicts growth for the global aerospace and defence industry in 2010
Growth driven by opportunities in Asia and the Middle East and an acceleration of M&A activity; China and India identified as key markets.

Fuente:   Fecha:  25.02.2010

Deloitte predicts growth for the global aerospace and defence industry in 2010

Deloitte expects steady growth in 2010 for the global aerospace and defence (A&D) industry as order numbers rebound and significant growth opportunities emerge in the east and M&A activity accelerates.

According to a Deloitte report, Compass 2010 – Global Aerospace & Defence Sector Outlook, orders for new commercial aircraft are projected to grow to over 800 units this year, reversing the steep decline experienced in 2009 when orders totalled 413 units. Similarly, demand for business jets are showing signs of improvement. Defence companies should also see demand rise driven by new requirements for innovative technologies in cyber-security, intelligence, surveillance, reconnaissance, remotely piloted vehicles and data fusion.

Pauline Biddle, corporate finance partner and UK head of aerospace and defence at Deloitte, commented: “We are confident that 2010 will see an improvement in M&A activity in the A&D sector. Whilst we do not envisage a return to the high volumes of deal activity witnessed in the peak year of 2007, we are confident that both strategic and private equity buyers can gain access to capital to pursue acquisition opportunities in this resilient sector.

“We anticipate that large original equipment manufacturers will continue to acquire smaller companies to fill capability gaps. European sector firms, led as in prior years by UK headquartered businesses, are likely to acquire US companies. This will occur as companies look to ‘dollarise’ their cost structure and to establish or strengthen their position with the largest A&D market in the world, the US Department of Defence.

“Further, we predict a very definite move to the east as China, India and the Middle East increase their demand for industry products, as well as growing their manufacturing capability. China is expected to become a major provider of commercial aircraft over the next 20 years and India is boosting its defence offering, with their procurement budget expected to rise to US$45bn by 2012. US and European aerospace companies now recognise India as a critical market as well as a potential manufacturing partner.”

Commenting on the health of the UK defence industry, Allan Gasson, aerospace and defence partner at Deloitte, commented: “For the large equipment based prime contractors, UK and Europe are becoming less attractive as the available budget for large projects is diminishing. These primes are seeking new markets for their technology and capabilities. However, the service companies acknowledge that budget pressure will lead to structural changes in the configuration of the Ministry of Defence resulting in large scale outsourced support programs which they can benefit from.”