5% revenue rise seen for aerospace, defence sector

[SINGAPORE] The global aerospace and defence industry is expected to post revenue growth of 5 per cent this year, a pace similar to the last two years, on the back of the commercial aerospace sector.

However, the defence sector continues to face declining revenues - estimated at 2.5 per cent lower in 2013 - as US and European governments scale back defence budgets. This follows decreases of 1.3 per cent in 2012 and 1.9 per cent in 2011. These insights come from Deloitte Touche Tohmatsu Limited's (DTTL) latest industry outlook.

The United States is far and away the biggest contributor to total global spend on defence, at nearly 40 per cent, and the top 20 US defence firms have felt the impact of sequestration with revenues dipping 3.3 per cent in 2012.