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Logistics and Supply Chain Management Challenges for Aerospace
Hollingsworth Hollingsworth
A 2020 study by Deloitte reveals a complicated picture of the aerospace and defense (A&D) industry: While the defense sector continued to grow in 2019, commercial aerospace took a temporary hit.
Intensifying security threats ensured the growth of the defense sector in 2019, as governments around the world were forced to increase defense spending. This trend is expected to continue in 2020, with defense expenditures increasing by 3 to 4% (primarily in the U.S., China, and India) and reaching an estimated total of $1.9 trillion.
Production-related issues were a primary reason for commercial aerospace’s decline in deliveries in 2019. While order backlog decreased from its peak of 14,700 aircraft in 2018 to 14,000 in August 2019, aircraft manufacturers will likely continue to struggle to meet demand in 2020.
In fact, commercial ai
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