A&D orgs looking for ways to reduce costs sustainably: study

Aerospace and Defence (A&D) organisations are looking for any opportunity to sustainably reduce costs and create new platforms for growth through efficient research and development activities, responsive supply chains and targeted divestments and portfolio adjustments, a survey has said.
The survey findings, released in KPMG International's Global Aerospace and Defense Outlook (KPMG A&D Outlook) shows for the next 12 to 24 months, keeping the business model competitive is the biggest challenge for such organisation besides building strength and support growth agendas.
The Global Aerospace and Defense Outlook is based on a survey of 68 senior executives, conducted by Forbes on behalf of KPMG International, and was completed in early 2015, a release said.

Many were looking at foreign markets for their next round of growth, it said, adding that more than a quarter of respondents to the KPMG A&D Outlook say they will enter into new geographic markets.
"With growth remaining slow and prices under continued pressure, A&D organisations are looking ahead for untapped opportunities and are preparing the groundwork for a positive future," KPMG's Global Head for A&D Doug Gates said.
But with investors and shareholders becoming increasingly impatient for results, A&D organisations will need to move quickly to deliver on their promises, he said.

Exactly half of all respondents say they are focusing on adopting new manufacturing technologies and have breakthrough innovation as their primary strategy for advancement, it said.

The outlook suggests many of the respondents were tweaking and adjusting their supply chain models and processes.
"Those hoping to enter into new geographic markets or adapt existing products into adjacent markets should work closely with both traditional and new partners to take advantage of their local or functional expertise," Gates said.
However, new relationships often tend to turn supply chains into increasingly complex operations and can become a drag on agility and competitiveness, he added.
"With defense being one of the focus sectors for "Make in India" campaign and an assertive India building up its military muscle, India provides both the opportunity for boosting sales and realising frugal engineering for cost management for the global A&D organisations," Amber Dubey, Head of Aerospace and Defense, KPMG in India said.