From Aerospace & Defense Manufacturing 2012…

“Aerospace and Defense companies are turning to internal process improvements to combat current market pressures.

Although this industry has traditionally enjoyed a resilience to economic volatility, a recent slowdown in DoD spending is forcing A&D manufacturers and contractors to reevaluate their long term growth strategies.”

My Thoughts…

In previous blogs, I have talked about very profitable companies not thinking that they need to be more efficient; and I have talked about poorly performing companies knowing they need to be more efficient but not being willing to spend the money.

Current economic conditions are putting pressure on all companies to become more efficient.

Aerospace and Defense companies can see the handwriting on the wall – less money will be spent on defense in the near future.  So, these companies need to reduce their dependency on new contracts and manage their profitability.

Some weapon contracts will not be renewed and it will be harder to bring new weapon ideas to market.  This leaves Aerospace and Defense companies looking to downsize with an eye on maintaining profitability.

These Aerospace and Defense companies have been early adopters of 6 sigma kinds of activities.  Now, they will be looking through ALL facets of their business to find ways to be more efficient.

This economy doesn’t look like it is going to recover quickly – making it a good time for all companies to look for ways to be more efficient.

Your Thoughts…

All companies are looking at ways to grow in spite of the economy – is becoming more efficient in your company’s plans?

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