As the US and European countries face the realization of spending cuts, companies in the Aerospace and Defense sector and probably watching nervously. Those who sell to them also need to be watching as target marketing efforts and sales quotas get set for the upcoming year, banking on big sales numbers from Aerospace and Defense may be chancy. Military budgets will likely be affected and, in turn, these companies will be vying for a small pool of funds.
But this is not new for this sector as the past few years have been slow as well. Looking at the companies in this segment, we have 42 firms in The Global 5000 that are classified as Aerospace and Defense. With a combined total of $520 billion of revenue, their growth curve for year over year revenue looks like this:
- 2007 … 13.3%
- 2008 … 6.7%
- 2009 … neg 0.2%
- 2010 … 0.8%
The past two years they have been running in place somewhat.
The largest firms in this segment are:
- United Technologies
- Lockheed Martin
- Northrop Grumman
- General Dynamics
- BAE Systems
- Honeywell International
- Aviation Industry of China
There are over 2,100,000 people employed by Global 5000 firms in this segment and a surprising 20% have a LinkedIn profile. This is a very active group. Social Media watchers will likely see a lot of activity here as this kind of (potentially) bumpy ride in an industry can cause some churn ion the workforce. The companies here spend nearly $170 million on training and education which will likely feel the chill as well
A lot to watch and consider over the coming months as countries struggle to get their houses in order.