The Aerospace and Defense (A&D) industry is a critical business area that is more than just a business. Of course, there are businesses that are concerned about production, sales and profits, but this is one area of operations where countries take active interest because of their need to protect themselves.
Recent Changes In The Aerospace And Defense Industries
In recent times the A&D industry has gone through many changes, and some of them have been positive for the business and some not so positive.
Firstly, in the last decade or so, the perception of threat has increased – international terrorism has made it worse. Nations of the world have had to strike against Iraq and Afghanistan. There have also been instances of regional political tensions in China, India, Pakistan, and in other parts of the world. Countries are always trying to get the latest machinery so that they can remain armed and can face any contingencies. Because of this, the demand for A&D has only risen.
It also needs to be remembered here that this is a high technology industry that changes rapidly with scientific and technological breakthroughs. What this means is that, countries need to upgrade their facilities as new technology makes the old redundant. In other words, if your political enemy has upgraded, your defense abilities may fall short and you must also upgrade your resources.
This, of course, means that the aerospace and defense industry can keep selling to the same customer over and over again. But not everything is that good. In fact often, there are a great number of challenges. The main threats are from uncertainties concerning the supply of oil and the steep price hikes, political uncertainties and a worldwide credit crisis because of which countries are worried whether they will be able to meet the high prices of the A&D companies or not. There have been, after all, instances of default. There have also been instances where countries have had to take a loan to meet their defense needs.
The A&D Business And Industries Worldwide
These are big businesses and contracts can run into billions of dollars. Naturally there is a lot of competition among companies. There are usually two kinds of contract. Firstly, there is the contract of sale and second there is the maintenance contract wherein engineers of the company maintain the facilities, train government staff to maintain them, or do both.
Some of the biggest companies in the aerospace and defense industry are based in the European Union (BAE Systems, EADS, Dassault, Finmeccanica and Thales), China (the manufacturing and research facilities are located in Nanchang, Shenyang, Shanghai, Chengdu, Xian and Beijing), India (HAL in Bangalore), Russia (United Aircraft Building Corporation and Oboronprom), the UK (BAE Systems) and the US.
Continue reading about Understanding the Aerospace and Defense Industry
Aerospace industry is program-driven, and it takes years to develop a new aircraft. Besides this, it is highly vulnerable to outside forces like budget approvals. So, a supplier has to prepare himself for high risks involved in the production.
How to Market to Aerospace Industry:
Maintenance, repairs and operations are the key areas where a great deal of opportunity exists for top as well as low level suppliers.
As a top-level supplier, you can work as system integrator while you have to look at the R & D aspects, repair and maintenance responsibilities and after sales services as a low-level supplier.
You can use the following marketing tactics to seek attention of aerospace manufacturers and aircraft programmers:
● For promoting new products and technologies, you can use print as well as online advertising. Special magazines and websites have found to be the best places to advertise your products and services.
● It is essential to generate leads and build relationships. Nothing can be more beneficial as referrals and goodwill.
● Sponsoring events like air shows and joining industry associations can help you make your presence known and have direct interaction with the prospective clients.
● A technical level meeting and presentation can let your clients feel that you understand their needs. If they ask for changes in the product, you can provide them customized ones.
● You should not act a product seller but as a risk sharer and relationship builder.
● Supply chain management is another area where you can explore.
● Do all the tasks from manufacturing, assembling to integrating components.
● For improvement in your performance, you should keep yourself involved with the developing aircraft programs.
Whatever marketing techniques you follow to reach the prospects, you should not forget that a good performance is essential for long run survival. Aerospace industry is considered very vital to the country’s security and growth and that’s why it deals with the people who are trustworthy and efficient and apt in performance. So, to sell your product and services to this industry, you have to be more disciplined in your approach.
You can seek out help of marketing advisers to prepare marketing program which is suitable for this industry type. Websites also provide useful tips to customize marketing efforts according to the industrial needs.