Defense Industry Business Confidence Report - H2 2016

Defense Industry Business Confidence Report - H2 2016

Code: SDI-DF6160PR | Published: Aug-2016 | Pages: 46 | Strategic Defence Intelligence
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The existing economic environment is stable for the defense industry, even though the highest percentage of executives foresee no change in customer confidence levels in H2 2016 (August 2016-January 2017). Companies are optimistic about growth prospects in North America and the Asia-Pacific due to anticipation of surge in defense budgets in the US, focus on new product development, and strong government expenditure plans for defense infrastructure in India. The defense industry is expected to record higher expenditure towards marketing and advertising and IT infrastructure in H2 2016 as compared to H1 2016. Moreover, executives with business operations in the Asia-Pacific and Europe expect increase in power and energy, and equipment and component prices, respectively, in H2 2016 as compared to H1 2016.

Key Findings
- Over one-third of respondents highlight a stable economic environment during H2 2016

- The majority of respondents are optimistic about company growth prospects in the next six months

- The majority of executives who operate in Asia-Pacific anticipate a positive change in customer confidence during H2 2016

- On an average, executives anticipate an increase of 3.5% in supplier prices for power and energy during the next six months

- New product development is the key area where respondents expect to spend more in H2 2016

- Improving operational efficiency is the top priorities for executives who operate in Asia-Pacific and the Rest of the World

Synopsis
SDIs defense Industry Business Confidence Survey H2 2016 examines executives opinion on the business environment over August 2016-January 2017. It also highlights existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities. Additionally, the report provides information categorized by region and presents comparison with H1 2016 wherever applicable.

What else does this report offer?

- Current state of the global economy: examines prevailing economic conditions globally and across various regions

- Company and industry growth outlook: provides industry executives expectations towards the growth prospects of their company and the industry over the next six months

- Change in customer confidence: analyzes defense industry executives opinion about the change in customer confidence during H2 2016

- Supplier prices projection: determines expected change in supplier prices across various categories and their impact on business confidence

- Change in staff headcount and sales performance: tracks expected change in staff headcount and sales for H2 2016 among industry executives globally

- Significant investment activities: highlights various areas in which industry executives intend to invest over the next six months

- Business concerns: provides information about potential business concerns indicated by survey respondents for H2 2016

- Key priorities: identifies the top priorities of industry executives operating in various regions

Reasons To Buy
- Helps organizations to 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 change 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 H2 2016

Table of Contents

Introduction
- Definitions
- Methodology and sample size
- Respondent profile
- Confidence indexes

Economic state, growth prospects and customer confidence
- Existing economic environment
- Industry and company growth outlook
- Expected change in customer confidence

Supplier prices, staff headcount and sales performance
- Supplier prices expectations
- Anticipated change in staff head count and sales projections
- Anticipated change in spend on key activities

Business concerns and organizational priorities
- Level of concerns and expected impact
- Significance of potential business priorities

Appendix

List of Figures


Figure 1: Confidence Index- H1 2016-H2 2016
Figure 2: Current economic condition - Overall (H2 2016) comparison (H1 2016-H2 2016)
Figure 3: Current economic condition - Region
Figure 4: Current economic condition - Region - H1 2016-H2 2016
Figure 5: Current economic condition - Those who operate and do not operate in a region
Figure 6: Industry and company growth prospects - Overall
Figure 7: Industry and company growth prospects - Overall - In detail - comparison (H1 2016-H2 2016)
Figure 8: Industry and company growth prospects - Region
Figure 9: Industry and company growth prospects - Region - H1 2016-H2 2016
Figure 10: Anticipated variation in customer confidence - Overall (H2 2016) comparison (H1 2016-H2 2016)
Figure 11: Anticipated variation in customer confidence - Region
Figure 12: Anticipated variation in consumer confidence - Region - H1 2016-H2 2016
Figure 13: Projected change in supplier prices - Technology - Overall and regional
Figure 14: Projected change in supplier prices - Technology - Regional - H1 2016-H2 2016
Figure 15: Projected change in supplier prices - Power and Energy - Overall and regional
Figure 16: Projected change in supplier prices - Power and Energy - Regional - H1 2016-H2 2016
Figure 17: Projected change in supplier prices - Equipment and Components - Overall and regional
Figure 18: Projected change in supplier prices - Equipment and Components - Regional - H1 2016-H2 2016
Figure 19: Staff headcount and sales outlook - Regional - H1 2016-H2 2016
Figure 20: Expenditure projection on key activities - Overall
Figure 21: Expenditure projection on key activities - Overall - H1 2016-H2 2016
Figure 22: Top five business concerns - Region
Figure 23: Business concerns - Overall and regional - A
Figure 24: Business concerns - Overall and regional - B
Figure 25: Top five organizational priorities - Region
Figure 26: Organizational priorities - Overall and region
Figure 27: Organizational priorities - Overall and region - Change compared to H1 2016
Lockheed Martin
Harris Corporation
The Raytheon Company
LightPath Technologies Inc.
ISP Optics Corporation
Northrop Grumman

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