PwC's annual review and analysis of how aerospace and defense companies performed in 2013, and a look at the challenges and opportunities they will face in the years ahead.
To help provide insight on how aerospace & defense companies performed today and the challenges and opportunities they will face tomorrow, PwC is pleased to share our latest industry report, Aerospace & Defense 2013 year in review and 2014 forecast.
The A&D industry reported its best year ever in 2013, in terms of revenue and operating profit. The uptick was driven by a continuing surge in the commercial aviation market that more than offset a weakening defense performance. The top 100 A&D companies set records in 2013, reporting $719 billion in revenue and $66 billion in operating profit. However, the largest companies accounted for the bulk of the profit gains.
Prospects continue to be bright for commercial aerospace. The sector continues to enjoy its longest and most profitable growth cycle in history — and there are no signs of a slowdown. The defense sector continues to face significant challenges, with more than $40 billion cut from defense spending in fiscal year 2013.
The industry reported another modest decline in revenue in 2013. However, good news for the sector arrived at the end of the year, when the US Congress passed the Bipartisan Budget Act of 2013, leading defense industry leaders to be more optimistic that another compromise could be reached in the future.