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(Transportation-News.com, February 04, 2016 ) The existing economic environment is stable for the defense industry, and customer confidence will change positively in H1 2016 (January 2016- June 2016). Companies are optimistic about growth prospects during the next six months, due to expectations of higher expenditure on new product development, research and analysis, and a renewed focus on improving operational efficiency and customer retention. Sales will be higher in North America during H1 2016, and spend will increase slightly on mergers and acquisitions over the next six months.
Key Findings
In total, 43% and 34% of industry executives indicate favorable or very favorable economic conditions in North America and Asia
One-third of industry executives anticipate no change in customer confidence in the next six months
On average, defense industry executives forecast an increase of 3.0% in supplier prices for technology in H1 2016
New product development is the key area where respondents expect to spend more in the next six months
Executives who operate in North America highlight cyber crime as the biggest concern for H1 2016
Improving operational efficiency and customer retention are the two main priorities for global defense industry over the next six months
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Synopsis
Strategic Defence Intelligence’s defense Industry Business Confidence Report H1 2016 presents executives’ opinion on the business environment over January 2016–June 2016. Organizations can understand the market by analyzing existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities. Additionally, organizations will have access to information categorized by region wherever applicable.
What else does this report offer?
Current state of the global economy: examine prevailing economic conditions globally and across various regions
Company and industry growth outlook: know industry executives’ expectations towards their company’s growth prospects and that of the industry over the next six months
Change in customer confidence: analyze defense industry executives’ opinion about the change in customer confidence during H1 2016
Supplier prices projection: determine expected changes in supplier prices across various categories and their impact on business confidence
Change in staff headcount and sales performance: track expected changes in staff headcount and sales for H1 2016 among industry executives globally
Significant investment activities: know about various areas in which industry executives intend to invest over the next six months
Business concerns: access information about potential business concerns indicated by survey respondents for H1 2016
Key priorities: examine top priorities of industry executives operating in various regions
Reasons To Buy
Organizations can make effective business strategy decisions by knowing the prevailing business conditions and sentiment within the defense industry
Organizations will be supported in business expansion decisions by providing information about projected changes in sales performance and supplier prices
Helps to improve operational efficiency of the organization by knowing about key priorities and the main concerns of defense industry executives
Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H1 2016
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Table of Contents
1 Introduction
1.1. Definitions and abbreviations
1.2. Methodology and sample size
1.3. Respondent profile
2 Economic state, growth prospects and customer confidence
2.1. Existing economic environment
2.1.1. Over one-third of respondents highlight the current global economic conditions as stable
2.1.2. In total, 43% of industry executives indicate favorable or very favorable economic condition in North America
2.1.3. Respondents who operate in North America and Asia-Pacific have more favorable opinion about their region
2.2. Industry and company growth outlook
2.2.1. The majority of respondents expect an optimistic outlook for company and industry growth prospects in H1 2016
2.2.2. Overall, 29% of industry executives are neither optimistic nor pessimistic over growth prospects for the industry in H1 2016
2.2.3. Positive outlook towards company growth is highest among respondents with business operations in Asia-Pacific
2.3. Expected change in customer confidence
2.3.1. In total, 54% of executives project positive or very positive change in customer confidence over the next six months
2.3.2. The majority of respondents with business operations in Asia-Pacific and Europe anticipate a significant increase in customer confidence in H1 2016
3 Supplier prices, staff headcount and sales performance
3.1. Supplier prices expectations
3.1.1. Overall, power and energy is anticipated to record the highest increase in supplier prices in the next six months
3.1.2. On an average, defense industry respondents project an increase of 3.0% in supplier prices for technology during H1 2016
3.1.3. Over one-third of defense industry executives foresee an increase of 0.1% to 3.99% in supplier prices for power and energy during the next six months
3.1.4. The majority of respondents anticipate an increase of 0.1% to 5.99% in supplier prices for equipment and components in H1 2016
3.1.5. Defense industry executives with business operations in North America project highest growth in sales during the next six months
3.1.6. Expenditure will increase on new product development and, mergers and acquisitions in H1 2016
4 Business concerns and organizational priorities
4.1. Level of concerns and expected impact
4.1.1. Economic, industrial, and societal issues can adversely impact business prospects, limit profitability and force changes in existing business strategy
4.1.2. Executives who operate in North America highlight cyber crime as the biggest concern for H1 2016
4.1.3. Respondents operating in the Rest of the World are most concerned about social unrest in countries of operation during the next six months
4.1.4. The levels of defense buyers' confidence and the performance of North American economies are the key concerns for defense executives
4.1.5. The majority of defense industry survey respondents are concerned over cyber crime and social unrest in country/countries of operation in H1 2016
4.2. Significance of potential business priorities
4.2.1. Globally, operational efficiency and customer retention are the most preferred priorities for defense executives
4.2.2. Executives operating in Europe and Asia-Pacific are least focused on corporate and social responsibility initiatives in H1 2016
4.2.3. Improving operational efficiency and customer retention are the two most preferred priorities for global defense industry over the next six months
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