Aerospace & Defense

The Aerospace & Defense industry weathered the recent ups and downs of the world economy. In fact, most of the leading defense companies have enjoyed record growth and profitability over the past few years – prompted by the industry’s continued importance to our national interests and security. However, many governments are now looking to cut defense spending as they foresee continued budget deficits and mounting national debt.

At the same time, the changing nature of national security is having a transformative impact on the industry. Governments are deploying fewer arsenals of traditional weapons. Instead, they are moving toward highly evolved, integrated systems that promote rapid deployment and extreme precision.

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In response to this ramped up demand for innovative weaponry systems coupled with the growing pressure on costs, defense companies are being squeezed to do more with less. This tension is dramatically changing the way A&D companies serve their customers, collaborate with their partners, and take ideas and solutions to market.

Beyond the uncertainty of government spending over the next 10 years, several other challenges exist. These include continuous and frequent leadership changes, demographic shifts that are creating a potential for significant loss of knowledge and experience, the influx of new competition from European and other foreign markets, and rising raw material demand and costs resulting in reduced profit margins. At Peloton, we understand these challenges and are working to help our clients to address them through enhanced business processes and enabling technology.