Decreasing Defense Expenditure: Key Trends and Future Outlook

Pages: 38 Published: May 31, 2017 Report Code: GD-DF6600PR

Increasing national debt, reducing the deficit, and emphasize on indigenous manufacturing, are major factors influencing defense budget cuts during 2017-2021. Moreover, the impact procurement of advanced technologies will remain a key challenge for defense industry manufacturers/suppliers in the aftermath of defense budget cuts. Furthermore, the industry is expected to lose jobs, particularly defense contractors, due to a decrease in the purchase of equipment, supplies, and services in the aftermath of defense budget cuts. Brazil and South Africa are expected to exhibit the highest defense budget cuts during 2017-2021, due to economic crisis, political uncertainty, and sharp fall in oil prices. Several defense organizations have increased their expenses towards renewable energy such as wind and solar power, to combat rising oil prices, budget cuts, and climate change policies

Synopsis

Decreasing Defense Expenditure: Key Trends and Future Outlook examines executives’ opinion on factors influencing the budget cuts during 2017-2021. It also highlights key operational areas experiencing budget cuts, major challenges, and its impact on the revenue generated by defense industry suppliers. Additionally, it provides information categorized by region and company type.
What else does this report offer?
– Key operational areas experiencing budget cuts: examines decrease in defense expenditure in various segment over the next four years
– Major Challenges: identifies major challenges that are likely to impact defense companies, aftermath of defense budget cuts
– Impact on suppliers revenue: tracks the expected change in revenue generated by suppliers as a result of defense budget cuts
– Budget allocation: examining budget expectations for defense organizations during 2017-2021, in comparison to 2012-2016
– Demand for new technology: provides information about the demand for new technology equipment, aftermath of defense budget cut

Scope

– Over one quarter of executives from medium sized companies plan to reduce their defense expenditure in the areas of air and naval forces

– The highest percentage of respondents highlight new facility acquisition division to witness increased defense budget cuts over the next four years

– During 2017-2021, rising national debt is highlighted as one of the key factors influencing defense budget cuts in Asia-Pacific and the Rest of the World

– Overall, 65% of executives noted that the procurement of advanced technologies will be impacted in Europe, in the aftermath of defense budget cuts

– 35% of industry executives from the Rest of the World state no change in budget cuts in 2017-2021, due to the implementation of clean technology

– One-fourth of executives from large companies expect a 10-25% increase in the demand for new technology equipment over the next five years

Reasons to Buy

– Helps organizations to take steps to cut down impact (loss) due to defense budget cuts

– Helps to manage cost by providing information about the challenges faced by suppliers aftermath of defense budget cuts

– Provides information about change in demand for new technologies aftermath of defense budget cuts

– Helps to understand the defense divisions that are likely to expect major reduction in budget during 2017-2021

Key Players

Hindustan Aeronautics Limited
Saab and Lockheed Martin

Table of Contents

Table of Contents

Introduction

Definitions

Methodology and sample size

Respondent profile

Decreasing Defense Expenditure: Impact of budget cut and factors influencing defense budget cut

Change in global defense expenditure 2017-2021

Key defense areas likely to witness decrease in defense expenditure

Defense divisions expected to witness major change in budget

Key factors likely to influence the defense budget cuts in 2017-2021

Decreasing Defense Expenditure: key challenges and countries likely to witness highest defense budget reduction

Key challenges to be faced by manufacturer/supplier aftermath of defense budget cuts

Region wise change in defense budgets in 2017-2021

Countries projected to witness highest defense budget cuts in 2017-2021

Comparison of defense budget cuts from 2012-2016 to 2017-2021

Decreasing Defense Expenditure: Critical impact on suppliers revenue and projected change in demand for new technology

Critical impact on suppliers’ revenue

Introduction of clean technology during budget cuts

Change in demand for new technology equipment

Measures taken by organizations to combat defense budget cuts

Appendix

List of Figures

List of Figures

Figure 1: Change in global defense expenditure during 2017-2021- Overall & Region

Figure 2: Change in global defense expenditure during 2017-2021- By Company Types

Figure 3: Key defense areas likely to witness decrease in defense expenditure- Overall

Figure 4: Key defense areas likely to witness decrease in defense expenditure- By Region

Figure 5: Key defense areas likely to witness decrease in defense expenditure- By Company Types

Figure 6: Defense divisions expected to witness major change in budget- Overall

Figure 7: Defense divisions expected to witness major change in budget- By Region

Figure 8: Defense divisions expected to witness major change in budget- By Company Types

Figure 9: Key factors likely to influence the defense budget cuts in 2017-2021- Overall

Figure 10: Key factors likely to influence the defense budget cuts in 2017-2021- By Region

Figure 11: Key factors likely to influence the defense budget cuts in 2017-2021- By Company Types

Figure 12: Key challenges to be faced by manufacturer aftermath of defense budget cuts- Overall

Figure 13: Key challenges to be faced by manufacturer aftermath of defense budget cuts- By Region

Figure 14: Key challenges to be faced by manufacturer aftermath of defense budget cuts- By Company Types

Figure 15: Region wise change in defense budgets in 2017-2021- By Region

Figure 16: Region wise change in defense budgets in 2017-2021- By Company Types

Figure 17: Countries projected to witness highest defense budget cuts in 2017-2021- Overall

Figure 18: Countries projected to witness highest defense budget cuts in 2017-2021- By Region

Figure 19: Countries projected to witness highest defense budget cuts in 2017-2021- By Company Types

Figure 20: Comparison of defense budget cuts from 2012-2016 to 2017-2021- Overall and Region

Figure 21: Comparison of defense budget cuts from 2012-2016 to 2017-2021- By Company Types

Figure 22: Critical impact on suppliers’ revenue- Overall & Region

Figure 23: Critical impact on suppliers’ revenue- By Company Types

Figure 24: Impact of clean technology during budget cuts in 2017-2021- Overall

Figure 25: Impact of clean technology during budget cuts in 2017-2021- By Region

Figure 26: Change in demand for new technology equipment over next five years- Overall & Region

Figure 27: Change in demand for new technology equipment over next five years- By Company Types

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