The aerospace and defense (A&D) industry is experiencing a transformative period marked by significant shifts in federal funding towards emerging markets. This article examines the trends in federal funding, the rise of new A&D hubs, and the strategic considerations companies must navigate to capitalize on these opportunities.
Federal funding for the A&D sector has increased substantially, driven by the need to modernize military systems and address new geopolitical threats. Key trends include:
A shift from legacy markets is evident, with traditional hubs like Seattle and Los Angeles seeing less growth in federal funding compared to emerging markets such as Dallas. JLL Research has shown that in some instances, increases in federal funding are outpacing available talent in growing markets. This diversification of funding is spreading across commercial aviation, defense, and the commercialization of space, creating diverse opportunities for A&D firms.
Read the full article from Area Development here.