Defense Industry Business Confidence Report – H2 2015

Date: 2015-12

The overall business confidence index for H2 2015 (August 2015-January 2016) has not changed compared to H1 2015 (January 2015-June 2015) as the existing economic environment is stable for the defense industry and customer confidence will remain more or less the same for the next six months. However, companies are optimistic about growth prospects during the next six months owing to expectations of higher expenditure on new product development and renewed focus on improving operational efficiency and customer retention. Sales will be higher in North America during H2 2015 compared to H1 2015, whereas spend will increase slightly on mergers and acquisitions during H2 2015 compared to H1 2015.

Key Findings
– In total, 44% of industry executives indicate favorable or very favorable economic conditions in Asia and the Middle East

– Over one-third of industry executives anticipate no change in customer confidence in the next six months

– On average, defense industry executives forecast an increase of 2.9% in supplier prices for technology

– New product development is the key area where respondents expect to spend more in the next six months

– The performance of the Eurozone is the most pressing concern for the majority of executives with business operations in Europe and Asia-Pacific during H2 2015

– Focus on expansion into markets has gained prominence among executives with business operations in North America in H2 2015

compared to H1 2015

Strategic Defence Intelligence’s defense Industry Business Confidence Report H2 2015 presents executives’ opinion on the business environment over August 2015-January 2016. Organizations can understand the market by analyzing existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities. Additionally, organizations will have access to information categorized by region along with comparisons with H1 2015 (January 2015-June 2015) wherever applicable.

What else does this report offer?

– Current state of the global economy: examine prevailing economic conditions globally and across various regions

– Company and industry growth outlook: know industry executives’ expectations towards their company’s growth prospects and that of the industry over the next six months

– Change in customer confidence: analyze defense industry executives’ opinion about the change in customer confidence during H2 2015

– Supplier prices projection: determine expected changes in supplier prices across various categories and their impact on business confidence

– Change in staff headcount and sales performance: track expected changes in staff headcount and sales for H2 2015 among industry executives globally

– Significant investment activities: know about various areas in which industry executives intend to invest over the next six months

– Business concerns: access information about potential business concerns indicated by survey respondents for H2 2015

– Key priorities: examine top priorities of industry executives operating in various regions

– Organizations can make effective business strategy decisions by knowing the prevailing business conditions and sentiment within the defense industry

– Organizations will be supported in business expansion decisions by providing information about projected changes in sales performance and supplier prices

– Helps to improve operational efficiency of the organization by knowing about key priorities and the main concerns of defense industry executives

– Helps to alter investment allocation by understanding key focus areas highlighted by survey respondents during H2 2015”

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