| The term 'aerospace' is uses to refer to the Earth's | | | | scientific and technological breakthroughs. What this |
| atmosphere above our planet. In other words, this is | | | | means is that, countries need to upgrade their |
| the part of atmosphere through which commercial, | | | | facilities as new technology makes the old redundant. |
| personal and military vehicles fly. Aerospace is often | | | | In other words, if your political enemy has upgraded, |
| used to refer to the research, designing, | | | | your defense abilities may fall short and you must |
| manufacturing, operation and maintenance of vehicles | | | | also upgrade your resources. |
| that can fly. Defense, on the other hand, is a military | | | | This, of course, means that the aerospace and |
| action that is concerned with the protection of the | | | | defense industry can keep selling to the same |
| country against an attack. Therefore, the term | | | | customer over and over again. But not everything is |
| 'aerospace and defense' refers to the use of flying | | | | that good. In fact often, there are a great number |
| vehicles and aircrafts to protect the borders of a | | | | of challenges. The main threats are from uncertainties |
| country against an offense. | | | | concerning the supply of oil and the steep price hikes, |
| The Aerospace and Defense (A&D) industry is a | | | | political uncertainties and a worldwide credit crisis |
| critical business area that is more than just a | | | | because of which countries are worried whether |
| business. Of course, there are businesses that are | | | | they will be able to meet the high prices of the A&D |
| concerned about production, sales and profits, but | | | | companies or not. There have been, after all, |
| this is one area of operations where countries take | | | | instances of default. There have also been instances |
| active interest because of their need to protect | | | | where countries have had to take a loan to meet |
| themselves. | | | | their defense needs. |
| Recent Changes In The Aerospace And Defense | | | | The A&D Business And Industries Worldwide |
| Industries | | | | These are big businesses and contracts can run into |
| In recent times the A&D industry has gone through | | | | billions of dollars. Naturally there is a lot of competition |
| many changes, and some of them have been | | | | among companies. There are usually two kinds of |
| positive for the business and some not so positive. | | | | contract. Firstly, there is the contract of sale and |
| Firstly, in the last decade or so, the perception of | | | | second there is the maintenance contract wherein |
| threat has increased - international terrorism has | | | | engineers of the company maintain the facilities, train |
| made it worse. Nations of the world have had to | | | | government staff to maintain them, or do both. |
| strike against Iraq and Afghanistan. There have also | | | | Some of the biggest companies in the aerospace and |
| been instances of regional political tensions in China, | | | | defense industry are based in the European Union |
| India, Pakistan, and in other parts of the world. | | | | (BAE Systems, EADS, Dassault, Finmeccanica and |
| Countries are always trying to get the latest | | | | Thales), China (the manufacturing and research |
| machinery so that they can remain armed and can | | | | facilities are located in Nanchang, Shenyang, Shanghai, |
| face any contingencies. Because of this, the demand | | | | Chengdu, Xian and Beijing), India (HAL in Bangalore), |
| for A&D has only risen. | | | | Russia (United Aircraft Building Corporation and |
| It also needs to be remembered here that this is a | | | | Oboronprom), the UK (BAE Systems) and the US. |
| high technology industry that changes rapidly with | | | | |