Navigating volatility and achieving sustainable growth with future-proof strategies
The war in Ukraine, the Covid-19 pandemic and their impacts have led to a turning point in the aerospace and defense industry. The industry is now at the beginning of a decade of technology-driven transformation, with novel products reaching maturity, new business models challenging traditional value streams and new players entering the scene.
Civil aviation has experienced an unprecedented slump as a result of the pandemic. Even though the Covid crisis has largely been overcome, the industry continues to struggle with a number of challenges. On the one hand, the abrupt shutdown of aircraft production required a synchronization, ramp-up and stabilization of severely disrupted supply chains to withstand geopolitical tensions. On the other hand, awareness of sustainability continues to grow, meaning that the decarbonization of the aviation industry through new fuels and engines must be vigorously pursued.
The commercialization of space continues to advance. Non-industry players are entering the market and driving the development of new products and data-driven business models at high speed thanks to excellent capitalization. At the same time, costs are decreasing significantly due to intensifying competition and new technical possibilities. These are the challenges of representatives of the aerospace industry, who have traditionally generated a large part of their business with institutional clients.
The war in Ukraine has suddenly thrust the defense industry into the public spotlight and it now needs to ramp up its capacities within a very short time. The digitization of weapon systems and the battlefield (“system of systems”) requires new capabilities from the industry and ways of cooperation – also with companies from outside the sector. For defense companies, the focus is therefore on innovative contract models with industrial partners. Moreover, they need to scale production capacities within the shortest possible time and align their capabilities with accelerating trends and technologies.
To remain competitive in turbulent times and survive future crises as unscathed as possible, our global Strategy& aerospace and defense consulting team supports clients along the entire value chain. Our portfolio includes the realignment of corporate strategy, our "Fit for Growth" approach to sustainable cost reduction, support for complex M&A processes, risk assessment and further development of international supply chains, production networks and operations, as well as program management. In addition, consulting on the digitalization of products and services as well as internal company processes and various aspects of ESG and sustainability transformation are becoming increasingly important in our A&D projects.
We have many years of experience working with suppliers, tier-1 and subsystem manufacturers, OEMs and prime contractors, as well as MRO providers and operators.
Decarbonization and ESG strategy/ Net Zero
SAF procurement and supply incl. use case definition and implementation within the different stages of the product life cycle
Further development of supply chain resilience, supplier strategies, strategic collaboration models, and supplier task force programs
Expansion and reconstruction of production capacities
"Efficiency Hub": Strategic optimization of processes throughout the product lifecycle, incl. concepts such as performance-based logistics and lean management
Supply chain transparency and operations optimization to increase capacity, as well as production relocation and site optimization
Development of digital transformation strategies in production, including smart factory, digital twin and predictive maintenance
Acceleration of innovation cycles in product development
Commercialization, growth and go-to-market strategies for private space companies and their business models
Definition of space strategies as well as set-up and transformation of responsible organizations
Economic market studies along the space value chain and related risk analyses
Mediation between downstream service providers and client companies