Flying at the speed of disruption

No time to rest.

The Aerospace & Defense industry is facing relentless uncertainty, pushing its key players to form a comprehensive view of the challenges and prioritize solutions. Geopolitical conflict is spreading; talent availability is tightening; supply chains remained constrained by bottlenecks and quality lapses; capacity is increasingly strained as customers’ demands prove difficult to predict; and the pressure to decarbonize is mounting. In this environment, executives are tempted to spend all their time simply fighting fires. Every trend points to higher stakes, a faster pace, fresh technology, and a tug-of-war between the big primes and new incumbents battling over their piece of a multi-trillion-dollar pie.

Leaders, however, don’t need to search far for silver linings. Despite myriad macro concerns, fundamentals are strong. Valuations are strengthening amid robust profit performance; global air travel has more than bounced back; narrowbody aircraft demand has gained momentum with widebody demand also showing signs of resurgence; the space economy is booming; and deal activity has picked up steam.

The AlixPartners Aerospace & Defense Outlook offers a comprehensive view of this complex industry in an era influenced by deglobalization, increased regulation, high borrowing costs, steep investment demand, and cutthroat competition. This insightful outlook summarizes the state of play across several sectors and delivers insights necessary to navigate the journey ahead. Companies – no matter their size – cannot escape disruption, but they can better control how they respond. 

Meet the experts behind this year's study and learn more about what's in store for the Aerospace & Defense industry.