DUBAI: Defence spending is on the rise in several countries around the world,especially in the Middle East, India, China, Russia, South Korea, Brazil and Japan, according to a prominent consulting firm.
However, global defence spending is declining in general,resulting mainly from reduced armed conflict in Iraq and Afghanistan and affordability concerns in many traditionally active military governments, the new Deloitte forecast '2014 Global Aerospace and Defence Outlook' said.
Many of the countries with increased spending have produced the incremental wealth necessary to equip their militaries with modern defence platforms and technologies. Some of these countries have threats on their borders or in their geographies, all of which is contributing to an increased defence spending, the report said. On the other hand, the commercial aerospace sector is expected to set records again for production of aircraft, due to the accelerated replacement cycle of obsolete aircraft with next generation fuel-efficient aircraft and growing passenger travel demand, especially in the Middle East and the Asia-Pacific regions.
This demand for new commercial aircraft will pressure supplier networks to continuously improve their engineering design, manufacturing and supply chain management capabilities, all the while being able to cost-effectively meet tougher price concession requirements from customers, it said. "As we celebrate the 110th anniversary of the Wright Brothers' first powered flight, we are reminded that the industry is still young, yet it has contributed much, with technology innovation at the heart of advancements in the industry,"said Tom Captain, DTTL global aerospace and defence sector leader.
"2014 and the rest of the decade promises to deliver even more exciting technology innovations that will focus on the way consumers travel by commercial aircraft, communicate via satellites, shop over the internet, conduct armed conflict when necessary, and assist with humanitarian missions to far reaches of the globe," he said.