The largest in the world, UK's aircraft and aerospace industry comprises civil air transport and defense. It is on of the UK's top exporting industries which employs about 50, 0000 people directly or indirectly. The civil aerospace market is growing rapidly with passengers' number rising due to low cost air travel. Aerospace and defense sector booming developing nations economics such as china and India. High oil prices and environmental legislation are driving airlines to replace less fuel efficient aircraft which is boosting the market.
Defense export sales are the biggest sub sector of the aerospace industry. Deployment of forces around the world is helping to boost trade and developing nations are looking to upgrade and expand their military capabilities. All exports of military goods from UK to any destination require an export license issued by the department for business and regulatory reform. Many countries in EU and throughout the world have special legislation that covers the impact of defense and aerospace products.
Aerospace and defense business is composed of companies manufacturing defense products like military aircraft, weaponry, watercraft and spacecraft. Indian space research organization has recommended that India could play a leading role in growing global aerospace business if it achieved self reliance in related technologies. Aerospace and defense industries have been on the forefront of the technology advancement and these industries have pioneered the development of many high performance materials which includes advanced alloys or composers. Globalization of technology and finance has impacted the aerospace and defense industries. The U.S defense industry has increased their market share, particularly in combat aircraft, rockets and satellites.
Aerospace and defense manufacturers develop aircraft and spacecraft for the commercial sector, missiles, tanks and other products for militaries. GE manufactures engine and Raytheon makes radar system. Aerospace firms have large contract with NASA, Lockheed and Boeing companies have agreements with it that it is equal to 3 to 4 percent of their annual revenue. If you are looking at the aerospace firms, you will definitely need to consider the process of working on defense projects. Aerospace projects have a high technical complexity factor and require a significant amount of engineering effort to produce products.
Aerospace and defense companies face unique challenge with size and scope of the new system of systems, along with greater scrutiny of program budgets, government initiatives to standardize manufacturing system. Both defense contractors and aviation companies feel pressures to preserve margins and improve profitability of long term engineering configuration management control and aircraft maintenance. Competition in aerospace and defense has never been fiercer and defense contractors have difficult challenges. India's defense sector is the third largest importer of defense hardware in the world. India is currently planning a defense by spending about $30 billion over the next five years.