The aerospace and defense industries are undergoing a significant transition, which is changing not only companies’ business models but the structure of the industry across Europe, particularly in France.
On the one hand, the aerospace industry is growing rapidly, driven by robust demand for more fuel-efficient aircraft as emerging countries expand their airlines. Manufacturers and their subcontractors must address the growing pressure on their supply chain while simultaneously ensuring the development of new-generation aircraft. The defense industry, on the other hand, is facing a slow-down, spurred mainly by the drive to cut public spending in Europe. This is threatening the large defense programs that stimulate innovation and enable European manufacturers to sustain their global leadership position.
Meanwhile, the center of gravity for these two markets is shifting, as European firms face mounting competitive pressures: supply chains are becoming global and new players are entering the market. Further, the ability to produce locally is becoming a major advantage in responding to customers’ expectations, as they demand high levels of cooperation and substantial transfer of skills.
Our Aerospace & Defense Practice is ideally positioned to assist companies in responding to their most critical challenges. These include optimizing portfolio strategy, driving growth, improving operational performance, and increasing supply chain agility. Further, because aerospace and defense companies must constantly innovate to maintain their leadership in a fiercely competitive international market, we concentrate on R&D centers. We help to increase efficiency in development processes and reduce project time so that innovations reach the market faster.
Our Aerospace & Defense Practice comprises more than 500 experienced consultants worldwide and over 100 specialists who worked in the industry prior to joining McKinsey. We advise more than 75 percent of the 25 largest global aerospace and defense groups.
We also work with a number of defense agencies, both in developed and emerging countries, helping them to better adapt to new security challenges. Our experience includes optimizing equipment acquisition, transforming defense logistics, improving supply chain performance, and conducting defense budget audits.