- Designing and producing innovative products and up-selling and cross-selling products continue to be top goals in the commercial sector. However, pricing pressures are forcing organizations to pursue continuous-improvement and cost-containment measures, slowing the rate of innovation.
- Sequestration has taken a toll on overall defense spending, with 65% of respondents citing budget uncertainty for decreased investments in R&D. Only 50% of respondents say they are investing in R&D, with cybersecurity, UAVs and electronic warfare topping the list of R&D investments.
- A majority of respondents (67.8%) report increased spending to protect against cyberthreats, with nearly half of those (29%) spending 25% to 50% more on cybersecurity in the past year.
- Technology modernization continues to be a major initiative, focusing on application replacement or modernization, and IT infrastructure modernization. Cloud computing is cited as a priority for implementing modernized applications by 41% of respondents.
- Finding skilled workers to replace the industry's graying workforce continues to be a key factor affecting A&D companies. Critical areas include aerospace engineering, mechanical engineering and cybersecurity.
- More than 71% of respondents in the government sector report at least a 10% increase in product costs related to complying with government acquisition regulations. Thirty percent reported cost increases of at least 26%.
Historically, the A&D industry has been slow to adopt cloud computing, but the 2015 survey showed that cloud is a priority for more than 40 percent of respondents. The move to cloud-based SaaS applications was a top-3 priority for modernization in 2015, but about one fourth of respondents cited "too many barriers to adopting the cloud" and uncertainty about the cybersecurity and data privacy of cloud-based applications as reasons hampering wider cloud migration, suggesting more education is needed.The survey also revealed the A&D industry's frustrations with the uncertainty over defense budgets and regulations required for participating in government contracts. In addition to discouraging bids on defense contracts, the current regulatory climate is affecting R&D investments at a time when A&D companies are facing a widening skills shortage. For complete results of the CSC 2015 A&D Market survey, conducted in the spring of 2015 with the Aerospace Industries Association, visit www.csc.com/2015A&DSurvey. About CSC Computer Sciences Corporation (CSC) is a global leader of next-generation information technology (IT) services and solutions. The Company's mission is to enable superior returns on our clients' technology investments through best-in-class industry solutions, domain expertise and global scale. CSC has approximately 72,000 employees and reported revenue of $12.6 billion for the 12 months ended January 2, 2015. For more information, visit the company's website at www.csc.com. About AIA Founded in 1919 shortly after the birth of flight, the Aerospace Industries Association is the most authoritative and influential trade association representing the nation's leading manufacturers and suppliers of civil, military and business aircraft, helicopters, unmanned aircraft systems, space systems, aircraft engines, homeland and cybersecurity systems, materiel and related components, equipment services and information technology. Click here to subscribe to Mobile Alerts for CSC.