Defense Industry Business Outlook and Procurement Report H1 2016

Published: May 2016
No. of Pages: 45
    ReportsandReports

Summary

Amid growing market uncertainty, decreasing defense expenditure, and rising competition, organizations within the defense industry are planning to increase focus on new products and services, expansion in the current market, and improving operational efficiency. Mergers and acquisitions are expected to increase within the defense industry with emerging markets such as India, Saudi Arabia, and China offering prominent growth opportunities. As organizations intend to increase use of technology, and locate lower cost sources of supply in H1 2016, procurement activities will increase on IT services and MRO activities. Consequently, procurement expenditure for defense organizations is projected to increase by an average of 7% over the next six months. Additionally, 46% of defense industry executives expect supplier prices to increase in the next six months and over one-third of defense industry executives highlighted limited or generalized deployment of e-procurement within their organizations.

Key Findings

  • The majority of defense organizations will focus on launching new products and services and expansion in the current market over the next six months
  • The US, Germany, and the UK will present significant growth opportunities during H1 2016
  • One-third of executives project an increase in mergers and acquisitions in the coming six months
  • Medium-sized companies foresee more capital expenditure on research and development in H1 2016, compared to small companies
  • Overall, 29% of executives expect the global procurement budget to remain lower than US$250,000 over the next six months
  • In total, 22% of respondents with business operations in Asia-Pacific communicated their intention of implementing e-procurement in their organizations

Synopsis

Strategic Defence Intelligence's Defense Industry Business Outlook and Procurement Report H1 2016 examines executives' opinion on business outlook and procurement activities over April-September 2016. Organizations can know about key business priorities, supplier price variations, changes in procurement expenditure, and supplier prices with the implementation status of e-procurement of within the defense industry. Additionally, it provides information categorized by region and company type.

What else does this report offer?

  • Key business priorities: examines defense companies' important priorities for H1 (April-September) 2016
  • Emerging and developed markets: provides information about key emerging and developed markets, which will offer the most growth over H1 2016
  • Change in MandA activity: analyzes defense industry executives' opinion on changes in merger and acquisition activity globally
  • Business concerns: identifies major business concerns that are likely to impact defense companies
  • Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally across key areas
  • Budget allocation: examining procurement budget expectations for defense organizations over the next six months
  • Supplier price outlook: determine the expected change in supplier prices over April-September 2016
  • E-procurement: identify executives' perspective towards e-procurement within the defense industry

Reasons To Buy

  • Highlights key business priorities thus helping defense companies to realign business strategy
  • Develop or adjust business expansion plans by knowing about significant growth-offering emerging and developed markets
  • Make changes in procurement budget allocations by analyzing procurement expenditure projections anticipated by executives for April-September 2016
  • Helps to manage cost by providing information about supplier price expectations for the next six months

Published By: Strategic Defence Intelligence
Product Code: Strategic Defence Intelligence13741


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