Aerospace firms increasingly need to go global in terms of operations and supply chains to gain ground in rapid growth markets such as Asia and the Middle East, according to a PricewaterhouseCoopers (PwC) report.
According to the report, aerospace remains less global than some other technology and knowledge-based industries measured in terms of total industry import and export, offshore production, and globalisation of technology and research.
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PwC UK valuation and strategy partner Neil Hampson said that strong economic growth in Asia and the Middle East would lead to a sharp growth in air travel in these regions and a rise in defence spending by their governments.
Aerospace firms would need to prepare to be a part of the new markets.
“Governments and private sector companies in emerging markets seek to participate much more directly in the aerospace and defence industry,” he said.
As a result, aerospace firms looking to access new markets and new sources of supply are faced with the risk of creating future competitors in the process of knowledge sharing and having to deal with intellectual property issues.
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By GlobalDataThe PwC report is based on interviews addressing globalisation concerns held with CEOs and senior executives in the A&D industry.
