The global aerospace and defense (A&D) industry is expected to return to growth in 2016 with total sector revenues estimated to grow at 3%, according to the Deloitte Global.
This positive signal follows years of declining revenue growth of 3.2% in 2013, 1.9% growth in 2014, and an expected decline of -0.5% in 2015.
Over the last three years, global A&D industry revenue was largely impacted by decreased revenues in the United States (US) defense subsector. The return to growth in 2016 is expected to be fueled by increases in the US defense budget, a resurgence of global security threats, and growth in defense budgets of key nations around the world.
In addition, relatively stable growth in global gross domestic product, lower crude oil and other commodity prices, and continued increases in passenger travel demand are contributing to expected growth in production rates for next-generation commercial aircraft.