Global aerospace and defense sector returns to growthStaff Writer | July 25, 2016
The global aerospace and defense (A&D) sector grew 3.8 percent in 2015, outperforming global domestic product growth of 2.4 percent.
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Companies analyzed added $24.8 billion in revenues to reach $674.4 billion. However, when adjusted for the strong US dollar exchange rate, global revenues declined 1.9 percent.
Further, due to increased military spending, the defense subsector showed a 1.7 percent growth in revenues, equating to $5.8 billion of revenue.
In the global commercial aerospace sector, original equipment manufacturers (OEMs) analyzed achieved record high aircraft deliveries and backlogs in 2015.
Deliveries rose 3.3 percent to 1,397, while aircraft backlog units reached an all-time high of 13,467 at the end of 2015, up 3.4 percent year on year.
The backlog is valued at a record high of $1.9 billion. Overall, the commercial aerospace subsector grew 6.3 percent to $325.5 billion in 2015.
At a regional level, the European A&D sector is eclipsing the US sector in revenue growth rates, according to Deloitte’s analysis of top global A&D company revenues.
Greater market competitiveness, increased defense spending, and continued growth in commercial aircraft production helped fuel an 8.2 percent revenue increase in Europe, compared with the U.S.’s 1.4 percent growth.
European growth consisted of 9.6 percent growth in commercial aerospace and 6.9 percent growth in defense. ■