Summary: European aerospace group EADS is planning to cut jobs and costs in its defence division following continued reductions in worldwide defence spending.
Defence industry spending
Highlighting lost contracts in Germany after the government cut back on defence spending as a major reason for the cuts, EADS said that the reductions were inevitable. So is the defence industry becoming more difficult to navigate and is competition increasing? And if so, what can defence contractors do to stay competitive?
It has been a difficult year for EADS, following the much-publicised collapse of the firm’s planned merger with BAE Systems last year. EADS announced in July that it was planning to combine its defence and space subsidiaries and rename the group after its Airbus aircraft making brand. The restructuring is due to be completed by July 2014.
Between 2001 and 2010, the EU reduced its military spending from €251bn to €194bn, according to the European Commission. While there are still defence contracting opportunities available for businesses, what more could your organisation be doing to grow in the coming months and years?
Think beyond defence procurement
In times like these, it is important to be aware of all the opportunities available to your organisation in all available sectors.
Many public bodies outside of the defence and security sector have requirements that your business could fulfil. Defence Contracts International not only gives you unrivalled access to defence opportunities worldwide, but also includes civil contracts, humanitarian aid organisations, the emergency services in the UK and internationally, and the aviation and aerospace sectors − a further opportunity to grow your business.