Rapid changes in the industry are creating pressure for companies to revisit their day-to-day operations and innovate to reposition themselves for the future. BCG helps aerospace and defense companies adapt to these ever-evolving times.
The changes roiling the commercial aviation business will have ramifications for the global aerospace and defense industry for years to come. The commercial aerospace industry is grappling with a sharp decline in air travel, which is weighing heavily on aircraft production and the civilian aerospace workforce. The defense industry, in contrast, has seen steady demand and even some new opportunities. For companies that operate in both segments, the challenge is to grow their defense business, maintain operations, and strengthen their financial position to offset the declines in the commercial business.
The new reality makes it vital for aerospace and defense companies to:
- Make operations and supply chains as efficient and effective as possible.
- Embrace innovation, including next-generation manufacturing, energy-efficient products, and advanced analytics.
- Launch digital transformations to increase operating efficiency and deliver new value to their customers by utilizing AI and machine learning.
- Transform their organizations through restructuring support, M&A expertise, and post-merger integration services.
- Future-proof their workforce by advancing diversity and equipping people with new skills.
- Rationalize their portfolio, disposing of poorly performing businesses and acquiring positions in new growth areas.
BCG has the deep industry knowledge, global insights, and digital transformation expertise to help aerospace and defense companies weather the storm and come out stronger. Our global team works across the aerospace and defense value chain to deliver sustainable competitive advantage to clients, create value, improve operations, and adapt new technology.