NEW YORK, Jan. 9, 2013 /PRNewswire/ -- According to the 2013 Global aerospace and defense outlook launched today by Deloitte, the global defense industry's revenue will likely continue to slide as a result of cuts in military spending, while the commercial aircraft industry will likely have record revenues in the coming year.
"The global defense industry should expect to see more aggressive competition for fewer large defense programs. Renewed foreign military sales efforts into new geographic markets that face increasing national security threats should offset part of the decline," said Tom Captain, vice chairman and U.S. and Global Aerospace and Defense (A&D) leader, Deloitte LLP.
However, in contrast to cuts in defense spending, the commercial aerospace sector is expected to reach record levels of revenue in 2013 as a result of increased production rates and the introduction of next generation aircraft. "In the commercial aircraft sector, expect to see 2013 continue with the trend of global production levels above 1,000 aircraft per year for the third year in a row," continued Captain.
The overall combined revenues for the A&D industry are expected to increase modestly in 2013 given large increases in global revenues for commercial aerospace, coupled with declines in defense spending. The balance of defense and commercial production activity should provide the diversification the A&D industry may need to continue to thrive and grow next year.
"Continued innovations that are the hallmark of this industry should power the next generation of technology development that can contribute to safer, more fuel efficient aircraft, as well as more capable weapons to help keep our war fighters out of harm's way," said Captain.
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