Offshore focus may represent opportunity for Canadian market
TORONTO—While mature aerospace and defence markets continue to stagnate, companies are under pressure to deliver strong returns to investors and shareholders – and Canada may be an attractive option for growth, according to a KPMG International survey.
“Aerospace and defence organizations are not willing to grow at any cost. Competition is strong and prices are under increasing pressure,” Grant McDonald, national sector leader of aerospace and defence at KPMG, said. “As a result, companies around the world are looking for strategic opportunities to reduce costs and Canada presents itself as a strong contender, offering growth potential for international players.”
Over the next two years, keeping their business models competitive will be the biggest challenge for A&D organizations. Historically, the US and the UK have turned to China and India when looking to remain competitive through international expansion. But, from acquisition prospects to supply chain development to significant federal funding programs, Canada may now be looking like a more promising player, according to the report.
“In today’s fast-changing A&D environment, new threats and competitors are emerging every day. Yet, the challenge for individual organizations has less to do with spotting new threats and more to do with how those companies react and respond to them,”McDonald added.
Other key findings from the survey results include: