UK Defence Industry is Poised to Grow During Recession -Press Release
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UK Defence Industry is Poised to Grow During Recession
LONDON, UK, June 25 - The Defence Industry in the UK will remain tightly insulated from global recession thanks to its reliance on long term spending that keeps it separate and practically immune from short term economic damage caused by ‘boom and bust’ economic cycles. The UK will be able to sustain spending levels of defence into the foreseeable future, unlike several smaller countries who will find even their defence budget crippled.
“Defence technology and product expertise have strong parallel opportunities in commercial aviation and homeland security, they are well positioned to offset decline in one segment by limiting exposure to a particular market,” said James Cooper a Research Analyst from research firm Frost & Sullivan.
The possibility of acquisition of Tier 2 and 3 defence companies which offer high margins and gross profit and a limited amount of exposure to program losses all offer the potential for growth in current market conditions. Access to longer term income is ensured due to national governments increasingly using defence companies as financing partners.
The UK industry should also be well poised to benefit from growth elsewhere as the countries like India continue to grow their defence budget, which will surpass the UKs for the first time in 2009. Frost & Sullivan Research Analyst Marko Lukovic stated: “The UK defence industry should tap into important growth markets like India which is expected to spend $100 billion on defence procurement alone during the next ten years.”
Strong opportunities also exist for companies who are willing to transition their expertise into different markets. Lockheed Martin and Raytheon are already competing on IT contracts for UK services such as the NHS, Home Office and Post Office, amongst others.
Companies interested in learning more about Frost & Sullivan’s analysis of the UK Defence Sector should email Monika Kwiecinska (details below) with their full name, company name, title, telephone number, email, website details and country.
About Frost & Sullivan
Frost and Sullivan have partnered with Global 1000 companies, emerging businesses and the investment community for over 50 years, from over 30 offices spread across six continents. As a Growth Partnership Company, Frost & Sullivan provide services and consulting to create effective growth strategies based on growth services and consulting. The company has over 1,800 analysts that cover more than 300 markets worldwide.
For Further Information Please Contact
Monika Kwiecinska
Corporate Communications – Europe
P: +48 22 390 4127
E: monika.kwiecinska@frost.com
http://www.frost.com
Press Release Written by: Staff From Press Release Services
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