Three Tips for Aerospace and Defense Leaders on How to Stay Ahead in 2021

As with every industry, the COVID-19 pandemic and related shutdowns forced Aerospace & Defense companies to quickly adjust and adapt. In a survey I conducted of more than 30 A&D company executives in the weeks following the outbreak of the pandemic, the three largest pain points were reassessing supply chains (65%), rebalancing capital (68%) and accelerating digital initiatives (60%). And while executives are indeed reeling from 2020’s turmoil, for most, the year ended in a much stronger position than expected.

There will certainly be permanent changes to the way the world does business and the way the government handles defense. Dozens of leaders I spoke with are mindful of restructuring as consolidations and layoffs continue, and largely plan to remain risk-averse in the first quarter. The A&D industry is bifurcated in terms of the impact of COVID-19 to the industry, with the defense segment faring much better than the commercial side. While there was a precipitous drop in the demand that feeds commercial OEMs and suppliers, strong defense budgets continued to prop up the defense segment. It’s no surprise then, that companies with a diversified customer base across both defense and commercial segments have enjoyed more stability and room to adjust than their solely commercial aerospace counterparts.

As we kick off 2021, keep an eye out for the following trends from successful organizations and incisive leaders.

This article was originally published on Raines International's website. To read the complete article, click here.