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(Transportation-News.com, May 31, 2016 ) Amid growing market uncertainty, decreasing defense expenditure, and rising competition, organizations within the defense industry are planning to increase focus on new products and services, expansion in the current market, and improving operational efficiency. Mergers and acquisitions are expected to increase within the defense industry with emerging markets such as India, Saudi Arabia, and China offering prominent growth opportunities. As organizations intend to increase use of technology, and locate lower cost sources of supply in H1 2016, procurement activities will increase on IT services and MRO activities. Consequently, procurement expenditure for defense organizations is projected to increase by an average of 7% over the next six months. Additionally, 46% of defense industry executives expect supplier prices to increase in the next six months and over one-third of defense industry executives highlighted limited or generalized deployment of e-procurement within their organizations.
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Key Findings
The majority of defense organizations will focus on launching new products and services and expansion in the current market over the next six months
The US, Germany, and the UK will present significant growth opportunities during H1 2016
One-third of executives project an increase in mergers and acquisitions in the coming six months
Medium-sized companies foresee more capital expenditure on research and development in H1 2016, compared to small companies
Overall, 29% of executives expect the global procurement budget to remain lower than US$250,000 over the next six months
In total, 22% of respondents with business operations in Asia-Pacific communicated their intention of implementing e-procurement in their organizations
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Table of Contents
Introduction
Definitions
Methodology and sample size
Respondent profile
Global Business Outlook in H1 2016
Strategic business priorities
Emerging markets with significant growth potential
Growth potential for developed markets
Mergers and acquisition
Leading business concerns
Capital expenditure projections
Procurement Behaviors and Strategies
Potential changes in procurement resources and objectives
Procurement activity outlook in key areas
Global procurement budget projections
Planned change in procurement expenditure
Supplier prices outlook
Organizations’ viewpoints on E-procurement
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