Global Defense Industry Suppliers: CEO Business Outlook Survey 2012-2013

Jul 30, 2012, 08:00 ET from Reportlinker

NEW YORK, July 30, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Global Defense Industry Suppliers: CEO Business Outlook Survey 2012-2013

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Product Synopsis

"Global Defense Suppliers CXO Business Outlook Survey 2012-2013: Industry Dynamics, Market Trends and Opportunities, Expenditure and Procurement Strategies" is a new report by ICD Research and Strategic Defence Intelligence that analyzes how defense supplier companies' media spending, marketing, sales strategies, practices, and business planning are set to change in 2012-2013. This report provides the current size of the marketing and advertising budgets of global defense suppliers and how spending by suppliers will change, providing insight into global marketing behavior. In addition, the report identifies future growth of buyers and suppliers, and M&A activity. Furthermore, this report not only grants access to the opinions and strategies of C-level decision makers and competitors, but also examines their actions surrounding business priorities."

Introduction and Landscape

Why was the report written?

This report is the result of an extensive survey drawn from ICD Research and Strategic Defence Intelligence's exclusive panel of 68leading global defense industry C-level executives. The report provides data and analysis on global defenseindustry suppliers' media spending, marketing, sales strategies, practices, and business planning, within the global defenseindustry. This report includes key topics such as media channel spending outlooks, media budgets, marketing agency selection criteria, business challenges, and sales tactics of leading suppliers within the global defense industry. The report also identifies suppliers' future growth, M&A, and investment expectations.Most secondary research reports are based on general industry drivers and do not understand the industry executives' attitude and changing behaviours, creating a gap in presenting the business outlook of the industry. In an effort to bridge this gap, ICD Research and Strategic Defence Intelligence created this primaryresearch-based report by gathering the opinions of C-level respondents in the value-chain of the global defenseindustry.

What is the current market landscape and what is changing?

Of C-level respondents across the global defense supplier industry, 44% are 'more optimistic' about revenue growth for their company over the next 12 months.

What are the key drivers behind recent market changes?

The expected declining growth in the global defense market in 2012 is mainly due to anticipated decreases in military spending, principally in the US and Europe. Although the level of optimism is comparatively less in 2012, the defense industry expects an increase in demand for national security priorities such as cyber security, satellites, missile defense,and nuclear defenseacross the world. Additionally, the top priorities for the global defenseindustry in 2012 are'new products and services', 'expand in current market and abroad', and 'expand into new territories'.

What makes this report unique and essential to read?

"Global Defense Suppliers CXO Business Outlook Survey 2012-2013: Industry Dynamics, Market Trends and Opportunities, Expenditure and Procurement Strategies" is a new report by ICD Research and Strategic Defence Intelligence that analyzes how defenseindustry companies' media spending, marketing, sales strategies, practices, and business planning, are set to change in 2012-2013. This report provides the current size of the marketing and advertising budgets of global defense industry suppliers and how spending by global defenseindustry suppliers will change, providing insight into global marketing behaviour. In addition, the report also identifies future growth of suppliers and M&A activity. This report not only grants access to the opinions and strategies of C-level decision makers and competitors, but also examines their actions surrounding business priorities."

Key Features and Benefits

Project industry trends and revenue growth expectations in 2012 and understand business confidence to take informed business decisions.

Drive revenues by understanding future product investment areas and key growth regions.

Uncover key challenges and opportunities and identify the key actions required to win and maintain buyer business.

Formulate effective sales and marketing strategies by identifying how suppliers' marketing budgets are changing and the direction of spending in the future. Better promote your business by aligning your capabilities and business practices with your customer's changing needs.

Secure stronger customer relationships by understanding the behaviour and changing strategies of industry suppliers.

Key Market Issues

Overall, throughout the global defense supplier industry, 44% of C-level respondents are 'more optimistic' about revenue growth for their company over the next 12 months relative to the previous 12 months. A further 31% of C-level respondents are 'neutral' about revenue growth, as compared with 22% who are 'less optimistic' about their company's revenue prospects.

C-level executives from the global defense supplier industry expect increased levels of consolidation over the next 12 months. Of all C-level respondents, 57% project either a 'significant increase' or an 'increase' in M&A. However, 32% of C-level respondents expect no change in consolidation activities in 2012. The expected levels of consolidation in the industry could be due to new cost or demand pressures, repayment of debt, the potential need to meet new compliance procedures, quick access to new markets, business expansion, and an increase in market share. Additionally, suppliers reveal that they will increase capital expenditure towards'new product development' and 'machinery and equipment purchase'over the next 12 months.

Global defenseindustry respondents identify the Middle East to be the most important region for growth among emerging markets, followed by India, China, and Brazil. Defense expenditure across the Middle East is expected to grow by 14% in 2011-2016, with Saudi Arabia and the UAE emerging as the key spenders. The majority of the region's military expenditure is aimed to upgrade existing equipment and augmentingdefense capabilities, and these measures have primarily been adopted to counter the increasing threat from nuclear capable countries, homeland security concerns, and to protect critical infrastructure. On the other hand, according to 44% of C-level respondents, South Korea is expected to project the greatest demand for defense products and services in 2012-2013. Additionally, 40% of C-level respondents chose Singapore, Taiwan and Hong Kong, and 31% chose USA, as their preferred investment destinations.

According to the survey, 53% of supplier companies rated 'political interference' as an important business concern during 2012-2013, and a further 50% rate 'market uncertainty' as important.Overall, respondents consider ''innovate product', 'improve customer service', and 'work harder to reduce costs'to be the leading actions for suppliers to secure buyers' business.

ICD Research and Strategic Defence Intelligence's industry survey 2012 reveals that the marketing budgets of global defense industry supplier C-level respondents are expected to rise by an average of 8.8% over the next 12 months. Noticeably, 33% of C-level respondents expect an increase in marketing expenditure of between 1% to 10% in 2012, while only 5% of C-level respondents expect a decrease of between 1% and 10%.

Key Highlights

'Email and newsletters', 'conferences and events', and 'corporate and brand websites'are expected to register the highest increase in investment, as noted by 41%, 38%, and 37%of respective C-level respondents. By contrast, traditional media channels such as ''radio', 'telemarketing', 'television and video', and 'newspaper', are expected to attract the least investment.

'Customer retention', 'customer acquisition', and 'brand building or awareness' are considered the key marketing aims for supplier selection in the global defense supplier industry over the next 12 months. The most significant strategy that suppliers plan to employ in 2012 is to 'focus sales efforts on generating new business', to 'focus sales efforts on existing markets', and to 'trial new and innovative products in the market' as identified by 59%, 54%, and 46% of respondents respectively.

According to 25% of C-level respondents, headcounts in their organizations in 2012 are expected to increase by more than 2%. The introduction of new defense program and strategic focus shifting towards advanced warfare technologies, such as cyber warfare, intelligence, and counter improvised explosive device (IED) systems, surveillance, border-control missions, and situational awareness systems, may force the suppliers to recruit specialized personnel to accelerate the recruitment drive.

'Email promotions' and 'white paper downloads for lead generation' are identified as the most popular media channels by 34% and 33% of respective C-level respondents from global defense supplier companies.

Political instability in the Middle East and North Africa (MENA) region, specifically in countries such as Tunisia, Egypt, Baharin, Libya, and Syria, has motivated the respective countries in the region to strengthen their defense capabilities in order to counter any insurgencies from their neighbors, which in turn increases the sales expectation and the optimism in revenue growth for 2012.

Table of Contents

1 Introduction

1.1 What is This Report About?

1.2 Definitions

1.3 Methodology

1) Online Survey

2) Secondary Research

3) Data Analysis and Report Writing

4) Quality Control

1.4 Profile of Global Defense Industry C-level Survey Respondents

2 Executive Summary

3 Global Defense Industry Supplier Dynamics: C-level Respondents

3.1 Revenue Growth Expectations in the Global Defense Industry Supplier

3.1.1 Revenue growth expectations by region

3.2 Future Developments in Business Structure in the Global Defense Supplier's Industry: C-level Respondents

3.2.1 Future developments in the global defense industry

3.3 M&A Activity Expectations in the Global Defense Supplier's Industry

3.3.1 M&A activity expectations in the global defense industry

3.3.2 M&A activity expectations by region

3.3.3 Global defense supplier's industry: expansion abroad vs. M&A activity projections

3.4 Capital Expenditure Forecasting the Global Defense Industry Supplier

3.4.1 Forecast of capital expenditure in the global defense industry

3.4.2 Forecast of capital expenditure by region

3.5 Planned Change in Staff Recruitment in the Global Defense Supplier's Industry

3.5.1 Planned change in staff recruitment the global defense industry

3.5.2 Planned change in staff recruitment by region

4 Global Defense Industry Suppliers' Market Growth Outlook: C-level Respondents

4.1 Global Defense Suppliers' Industry: Demand in Emerging Markets

4.1.1 Demand in emerging markets

4.1.2 Demand in emerging markets by region

4.2 Global Defense Suppliers' Industry: Growth Expectations in Developed Markets

4.2.1 Growth expectations in developed markets

4.2.2 Growth expectations in developed countries by region

5 Threats and Opportunities for the Defense Industry Supplier: C-level Respondents

5.1 Global Defense Industry Suppliers: Leading Business Concerns in2012-2013

5.1.1 Leading business concerns by region

5.2 Global Defense Suppliers' Industry: Key Supplier Actions to Maintain and Win Buyer Business

5.2.1 Actions to maintain and secure buyer business by region

6 Global Defense Industry Suppliers' Spend Activity: C-level Respondents

6.1 Planned Change in Marketing Expenditure Levels: Global Defense Industry Suppliers

6.1.1 Planned change in marketing expenditure by region

6.2 Future Investment by Media Channel: Global Defense Suppliers' Industry

6.2.1 Future investment by media channel by region

6.3 Global Defense Supplier's Industry: Future Investment in Marketing and Sales

6.3.1 Future investment in marketing and sales by region

7 Global Defense Industry Supplier: Marketing Behaviors and Strategies: C-level Respondents

7.1 Global Defense Industry: Critical Success Factors for Supplier Selection

7.2 Key Marketing Aims for 2012-2013: Global Defense Suppliers' Industry

7.2.1 Key marketing aims by region

7.3 Global Defense Industry Supplier: Essential Amendments to Marketing Activities

7.3.1 Amendments to marketing activities by region

7.4 Use of New Media for Business Prospects: Global Defense Suppliers' Industry

7.4.1 Use of new media by region

7.5 Global Defense Suppliers: Critical Success Factors in Choosing a Marketing Agency

7.5.1 Critical success factors for choosing a marketing agency by region

8 Appendix

8.1 Methodology

8.2 Contact us

8.3 About SDI

8.4 Disclaimer

List of Tables

Table 1: Global Defense Supplier Industry C-level Respondents by Company Type, 2012

Table 2: Global Defense Supplier Industry C-level Respondents by Company Turnover (%), 2012

Table 3: Global Defense Supplier Industry C-level Respondents by Region (%), 2012

Table 4: Global Defense Suppliers' Industry: Revenue Growth Optimism (%), 2012

Table 5: Global Defense Suppliers' Industry: Revenue Growth Expectations by Region (%), 2012

Table 6: Key Expected Changes in Business Structure of Global Defense Suppliers' Industry (%), 2012

Table 7: Global Defense Suppliers' Industry: M&A Activity Expectations (%), 2012

Table 8: Global Defense Suppliers' Industry: M&A Activity Expectations by Region (%), 2012

Table 9: Global Defense Suppliers' Industry: Expand Abroad vs. M&A Activity Projections (%), 2012

Table 10: Capital Expenditure Forecast in the Global Defense Suppliers' Industry (%), 2012

Table 11: Global Defense Suppliers' Industry: Capital Expenditure by Region (%), 2012

Table 12: Global Defense Suppliers' Industry: Change in Staff Recruitment (%), 2012

Table 13: Global Defense Suppliers' Industry: Change in Staff Recruitment by Region (%), 2012

Table 14: Demand in Emerging Markets by Global Defense Suppliers' Industry(%), 2012

Table 15: Growth in Developed Countries: Global Defense Suppliers' Industry (%), 2012

Table 16: Global Defense Suppliers' Industry: Leading Business Concerns (%), 2012-2013

Table 17: Global Defense Industry Suppliers: Leading Business Concerns by Region (%), 2012-2013

Table 18: Global Defense Suppliers' Industry: Actions Secure Buyer Business(%), 2012

Table 19: Global Defense Suppliers' Industry: Actions to Secure Buyer Business by Region (%), 2012

Table 20: Global Defense Suppliers' Industry: Expected Change in Marketing Expenditure (%), 2012

Table 21: Global Defense Industry Supplier: Change in Marketing Expenditure by Region (%), 2012

Table 22: Global Defense Suppliers' Industry: Future Investment by Media Channels (%), 2012

Table 23: Global Defense Suppliers' Industry: Investment in Marketing and Sales (%) , 2012

Table 24: Global Defense Suppliers' Industry: Investment in Marketing and Sales by Region (%) , 2012

Table 25: Global Defense Industry: Critical Success Factors for Supplier Selection, 2012

Table 26: Global Defense Suppliers' Industry: Key Marketing Aims (%), 2012

Table 27: Global Defense Suppliers' Industry: Key Marketing Aims by Region (%), 2012

Table 28: Global Defense Suppliers' Industry: Amendments to Marketing Activities (%), 2012

Table 29: Global Defense Suppliers' Industry: Amendments to Marketing by Region (%), 2012

Table 30: Global Defense Suppliers' Industry: Use of New Media (%),2012

Table 31: Global Defense Suppliers' Industry: Use of New Media by Region (%),2012

Table 32: Global Defense Suppliers' Industry: Critical Success Factors (%),2012

Table 33: Global Defense Suppliers' Industry: Critical Success Factors by Region (%),2012

Table 34:: Global Defense Suppliers' Industry: Survey Results - Closed Questions

List of Figures

Figure 1: Global Defense Suppliers' Industry: Revenue Growth Optimism (%), 2012

Figure 2: Global Defense Suppliers' Industry: Revenue Growth Expectations by Region (%), 2012

Figure 3: Key Expected Changes in Business Structure of Global Defense Suppliers' Industry (%), 2012

Figure 4: Global Defense Suppliers' Industry: M&A Activity Expectations (%), 2012

Figure 5: Global Defense Suppliers' Industry: M&A Activity Expectations by Region (%), 2012

Figure 6: Global Defense Supplier's Industry: Expand Abroad vs. M&A Activity Projections (%), 2012

Figure 7: Capital Expenditure Forecast in the Global Defense Suppliers' Industry (%), 2012

Figure 8: Global Defense Suppliers' Industry: Capital Expenditure by Region (%), 2012

Figure 9: Global Defense Suppliers' Industry: Change in Staff Recruitment (%), 2012

Figure 10: Global Defense Suppliers' Industry: Change in Staff Recruitment by Region (%), 2012

Figure 11: Global Defense Suppliers' Industry: Top Ten Growth Regions, 2012

Figure 12: Global Defense Suppliers' Industry: Top Five Growth Regions, 2012

Figure 13: Demand in Emerging Markets by Global Defense Suppliers' Industry (%), 2012

Figure 14: Global Defense Suppliers' Industry: Demand in Emerging Markets by Region (%), 2012

Figure 15: Global Defense Suppliers' Industry: Top Five Growth Markets, 2012

Figure 16: Growth in Developed Countries: Global Defense Suppliers' Industry (%), 2012

Figure 17: Global Defense Suppliers' Industry: Growth in Developed Countries by Region (%), 2012

Figure 18: Global Defense Industry Supplier: Leading Business Concerns, 2012

Figure 19: Global Defense Suppliers' Industry: Leading Business Concerns (%), 2012-2013

Figure 20: Global Defense Industry Suppliers: Leading Business Concerns by Region (%), 2012-2013

Figure 21: Global Defense Suppliers' Industry: Actions Secure Buyer Business (%), 2012

Figure 22: Global Defense Suppliers' Industry: Actions to Secure Buyer Business by Region (%), 2012

Figure 23: Global Defense Suppliers' Industry: Expected Change in Marketing Expenditure (%), 2012

Figure 24: Global Defense Industry Supplier: Change in Marketing Expenditure by Region (%), 2012

Figure 25: Global Defense Suppliers' Industry: Future Investment by Media Channels (%), 2012

Figure 26: Global Defense Suppliers' Industry: Future Investment by Media Channels by Region (%), 2012

Figure 27: Global Defense Suppliers' Industry: Investment in Marketing and Sales (%) , 2012

Figure 28: Global Defense Suppliers' Industry: Investment in Marketing and Sales by Region (%) , 2012

Figure 29: Global Defense Industry: Critical Success Factors for Supplier Selection, 2012

Figure 30: Global Defense Suppliers' Industry: Key Marketing Aims (%), 2012

Figure 31: Global Defense Suppliers' Industry: Key Marketing Aims by Region (%), 2012

Figure 32: Global Defense Suppliers' Industry: Amendments to Marketing Activities (%), 2012

Figure 33: Global Defense Suppliers' Industry: Use of New Media (%),2012

Figure 34: Global Defense Suppliers' Industry: Use of New Media by Region (%),2012

Figure 35: Global Defense Suppliers' Industry: Critical Success Factors (%),2012

Figure 36: Global Defense Suppliers' Industry: Critical Success Factors by Region (%),2012

Companies Mentioned

ASSOCHAM, Tactical Communications Group, NATO, Pentagon, SIPRI, Sukhoi, TORC, DARPA, Systematic, Department of Homeland Security (DHS), National Defense University, Enterprise Control Systems, Mercury , Aitech, Henggeler Computer Consultants, ManTech, Procerus Technologies, ITT Corporation, MICA, DSEi, ITT Exelis, Vangent, Raytheon, Lockheed Martin, US Department of Defense, General Dynamics, Northrop Grumman, Pikewerks, Boeing, Thales, BAE systems,L-3 communications, Rajant, Technical and Analytical (SETA), Hindustan Aeronautics Limited (HAL),Sapura Thales Electronics (STE), Eurofighter, Dassault Rafale.

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