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Defense Industry Business Confidence Report - H2 2016

  • August 2016
  • 46 pages
  • Strategic Defence Intelligence (SDI)
Report ID: 3438133

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Summary
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
SDI's 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

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