The U.S. aerospace and defense industry is a leading producer of high-tech products and services and is characterized by a net export surplus.
The industry is of strategic importance to the U.S. government due to its direct bearing on national security and its sustained leadership in the global market.
The industry in turn depends to a large extent on the U.S. government for the bulk of its revenue. While the U.S. aerospace and defense industry was significantly affected by the events of September 11, the market is finally on its way to recovery. While the commercial aircraft sector is still stabilizing at a slower rate, the defense and space sectors have recently seen a significant upturn in demand as a result of the global war on terrorism.
This report provides a profit analysis on the Aerospace and Defense Industry in the United States.
Topics covered:
I. Industry Definition
II. Industry Size
III. Industry Segments
IV. Future Outlook
V. Industry Structure
VI. Porter's Five Forces Analysis
a. Bargaining Power of Buyer
i. Government Influence
ii. Avenues for the Growth of Suppliers
iii. Strict Criteria for Selection of Suppliers
iv. Influence of Pentagon
v. Emerging New Markets
b. Bargaining Power of Supplier
i. Buyer's Influence in Manufacturing Processes
ii. Concentration of Suppliers in California
iii. High Bargaining Power of Government
iv. Competition from Foreign Suppliers
c. Competitive Rivalry within Industry
i. Niche Market for U.S. Companies
ii. European Firms in Non-U.S. Market
iii. EU's Competitive Edge
iv. European Competitors
d. Threat of New Entrants
i. Dominance of Large Players
ii. Dual Use of Commercial Products
iii. Strategic Partnerships & New Opportunities
e. Threat of Substitutes
VII. Conclusion
List of Figures and Tables
Figure 1: Structure of U.S. Aerospace and Defense Industry
Figure 2: Porter's Five Forces Analysis
Table 1: SIC Codes
Table 2: NAISC Code
