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The Defence market is undergoing major change in a context that is affected by the debt crisis in Western countries and an uncertain strategic environment. From a global point of view, one can notice a decline in American and European national Defence budgets (1,3% of the GDP in Germany). At the same time this activity has experienced strong growth in the BRICS economies, the Middle East and other emerging nations. 

What does that mean for manufacturers? From Europe's and the United States' perspectives this would mean that, despite associated costs, new programmes aimed at modernising equipment  to prolong the life cycle of certain products, would have to be developed. As for the emerging nations, security and defence material are in high demand as this would allow these nations to play a more strategic role, secure their governance systems and develop defence industrial capabilities. To respond to these issues, it has been AUSY’s aim for several years to broaden its client portfolio, while gaining new clients that the Group can accompany in offset management and technology transfers.    

European industries, which form part of AUSY’s historical client base, react strongly to these changes by turning to new markets, thus facing new competition from emerging countries. This is therefore an opportunity for AUSY to support its European clients with major international or transnational projects and to develop business locally.

When faced with markets where strong global competition is prevalent, European industries seek to unite to ensure a stronger positioning. Similar to Airbus and the civil sector, we should soon witness the emergence of new European Defence leaders in the domains of ground transportation, transport aircraft, tanker aircraft and drones.



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