PWC - Aerospace Defense Industry Performance Outlook 2023

The 2023 edition of PwC's Global Aerospace and Defense: Annual Industry Performance and Outlook report provides a comprehensive overview of the global aerospace and defense industry. The report covers various topics, including the impact of the COVID-19 pandemic on the industry, the commercial aviation and aerospace sector, the defense industry, and the challenges and opportunities faced by aerospace and defense companies. One of the key takeaways from the report is the robust late-pandemic rebound in demand for passenger travel, which has been accompanied by ongoing challenges with a supply of available seats that remains restricted, mainly because of workforce shortages. The report also notes that the long-term prospects for air cargo growth remain very strong, despite a slight decline in volumes and revenues in 2022 due mainly to reduced consumer online shopping and a post-lockdown shift in demand from goods to services. The report also highlights the significant effects of the ongoing war in Ukraine on the global military and civil aviation industries. The consequences for defense manufacturing and procurement are likely to prove transformational, with significant effects that may persist for decades. The report also notes that the US civilian and military A&D manufacturing industry faces significant workforce transition challenges, with pandemic-exacerbated labor shortages colliding with the prospect of workforce reduction. Up to 3.5 million vacancies are expected in the sector by 2026, 60% of which could remain unfilled. Overall, the report provides valuable insights into the current state and future outlook of the global aerospace and defense industry, highlighting both the challenges and opportunities faced by companies in this sector.