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Region to benefit from global aerospace and defence upturn

Suppliers to the global aerospace and defence industries are set to benefit from cost efficiencies and consolidation in this sector, a report has forecast.

According to a Deloitte report entitled ‘2011 mid-year outlook for the global aerospace and defence sector’, these industries are showing significant promise.

Increases in security requirements and demands for more sophisticated weapons systems from overseas could present further significant opportunities for North East defence suppliers.

Paul Williamson, manufacturing partner for Deloitte in the North East said: “Despite increased cost cutting pressures, we have seen a significant amount of consolidation in the global aerospace and defence industry, as the industry attempts to gain concentration, sales economies and cost efficiencies to the end customer.”

“Given the significance of overseas revenues, UK companies should be looking to leverage many of the global opportunities highlighted in the report, whilst also at the same time being aware of, and managing the impact of the challenges that lie ahead in many of the western markets.”

The defence industry employs around 8.000 people in the North East and is worth around £800m annually.

This was posted in Bdaily's Members' News section by Ruth Mitchell .