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On The Defense | BOXARR's value proposition across the economic cycle



The global aerospace and defense industry is expected to return to growth in 2016 with total sector revenues estimated to grow at 3.0 percent, according to the Deloitte Touche Tohmatsu Limited (Deloitte Global) Consumer & Industrial Products Industry group’s 2016 global aerospace and defense sector outlook. The return to growth in 2016 is expected to be fueled by increases in the US defense budget, a resurgence of global security threats, and growth in defense budgets of key nations around the world, such as the UK, France, Japan, India and several Middle Eastern countries. Global revenues in the defense sub-sector are expected to return to growth in 2016, as governments equip their armed forces with modern defense weapons platforms and next-generation technologies, including cyber, intelligence gathering, defense electronics, and precision strike capabilities. Likewise, relatively stable growth in global GDP, lower crude oil and other prices, and continued increases in passenger travel demand are contributing to expected growth in production rates for next-generation commercial aircraft.

This is certainly encouraging, however it's well known that the behemoth defense and aerospace industries have been in a long period of consolidation and are not swift to turn. OEMs and their associated supply-chain tiers are still dealing with the economic realities of today and in a 'program-budget oriented' industry, spend is still highly conservative. BOXARR's immense value to defense organisations in program delivery is evident in its adoption by some of the world's largest aerospace and defense OEMs and armed forces. Optimising integrated systems, supply-chain and production processes are immensely beneficial to system design and program delivery. However, what is also important to realise is that BOXARR provides organisations with tangible value across the economic cycle; in periods of both growth and consolidation.


In times of consolidation, organisations need to continue investing in solutions which contribute to both 'easing the pain' of downturn and helping to prepare a strong operational foundation upon which they can build in line with future upturn. BOXARR continues to deliver significant tangible value to organisations throughout a consolidation cycle by enabling executives to effectively model, simulate, visualise and analyse the impact of their consolidation and streamlining strategies - to a granular level across their organisational structure and operations.

By modelling and simulating their organisation and operations with BOXARR, A&D executives can make better informed decisions, which account for numerous layers of complexity and inter-dependency inherent in their sector. For example:

  • identify and analyse the 'hidden' risks of inter-dependency associated with consolidation

  • map and streamline lean supply-chains and design a structure for rapid and resilient increase in performance

  • streamline operations and processes to continue delivery against budgetary constraint

  • identify where and how to minimise overhead with minimal operational impact

  • visualise and identify areas of wastage and effectively plug the holes without opening new ones

  • simulate the pan-organisational impact of a strategic restructure, merger or acquisition

These principles are not solely related to defense, and can readily be mapped against other large industry, enterprise and government organisations. Investing in BOXARR applications delivers demonstrable eco-cyclic value - empowering organisations to maintain optimal performance despite the economic circumstances.

martin.hamilton@boxarr.com

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source: Deloitte 2016 Global Aerospace and Defense Sector Outlook

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