The aerospace and defense industries are big business. Contracts in the sector often soar into the billions of dollars, making it highly competitive. To make informed business or investment decisions in the aerospace and defense sector, your business should keep track of industry news and trends.

Because the aerospace and defense inustries are big business with big financial stakes, there are abundant sources of information about them. Whether your business is interested in latest in avionics or new "micro jets," you can find information about general market trends or specific segments. Plan to focus on sources that include future business forecasts. As your firm gathers aerospace and defense industry news and trends, keep the following points in mind:

1. You can gain key business intelligence on aerospace and defense companies from news and trends.

2. Market research on the aerospace and defense industry is a goods source for sector news.

3. Investment reviews of the aerospace and defense industry will indicate defense industry analysis.

Action Steps
The best contacts and resources to help you get it done

Check online and print sources for aerospace industry trends

There are numerous sources of information about news and trends in the aerospace and defense industry. Conduct an online search for organizations and companies that analyze the industry. Many provide synopses of reports online. Skim these for information of interest to your business.

I recommend: Go to Hoovers for industry overviews as well as data on major aerospace and defense companies. Check reports from RNCOS. They include information about the U.S. and international defense industries as well as future forecasts.

Buy market research reports on the defense and aerospace industry

Market research companies collect data on aerospace and defense trends and publish reports and updates. Your company will find the reports very informative, because they often include analyses from industry experts. Consider purchasing more than one to make sure your team gets a balanced view of industry happenings and future possibilities.

I recommend: Forecast International specializes in news and trends in the aerospace and defense industries. Use their reports as a point of information comparison. Access MarketResearch.com for research reports that cite news and trends, including prospective markets. Encourage your business to use the findings in both reports for planning purposes.

Access aerospace and defense industry quarterly reports

Investment companies provide your business with another excellent source of information on defense industry news and trends. Their quarterly reports identify business activities, large contracts and outstanding bids, changes in policy and future plans. Your company can gather business information on where the money is apt to flow and use it for investment or business decisions.

I recommend: Acquire the aerospace and defense industry report from McGladrey. It includes an industry analysis and news about specific aerospace companies. Check FT.com for the latest news and trends in aerospace and defense. Financial Times analysts gather information and analyze its impact.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Unless your business has a current trusted relationship with an information source, it's a good idea to access multiple sources for aerospace and defense news and trends in aerospace and defense. That way your analysts can compare data.

To succeed in the ultra-competitive aerospace and defense industry, today's companies must be flexible, fast and innovative. Even aerospace companies who have been in the industry for years are rethinking their strategies, finding new ways to turn new markets, segmented supply chains and elaborate engineering processes into real business opportunities. For those who have the chops, the possibilities are endless.

Those who operate aerospace and defense companies generally have three options when it comes to available markets:

1. Business opportunities with the government;
2. Business opportunities with commercial businesses; and
3. Business opportunities abroad in aerospace and defense.
   

Action Steps
The best contacts and resources to help you get it done

Find aerospace business partners for both money and supplies

In order to build and expand your aerospace and defense company, you'll need a lot of help. The good news is there are plenty of companies out there that are looking to both invest in and partner with new aerospace and defense companies.

I recommend: RSM EquiCo specializes in aerospace and defense, providing investment banking services to owners, shareholders and managers of privately-owned, midsized businesses. Also consider partnerships or supplier relationships with other companies, including giants like Hamilton Sundstrand, as well as smaller, niche suppliers like ASR Engineering, to help build your presence in the aerospace and defense industry.

Learn what others are doing right (and wrong) in defense industries

There are literally thousands of opportunities available, but those who succeed find a niche that best fits their background, abilities and industry contacts. Learn everything you can about aerospace industry trends, and any defense industry analysis you can find in trade magazines and professional organizations are market intelligence gold. This information will give you the foundation you need to know who your competitors are, what they're doing, and what you need to do to respond directly to your customers' needs.

I recommend: Visit MarketResearch.com for research reports that give in-depth detail on new product trends or competitive analyses of both new and existing markets. International Market Research Reports offers three reports for the price of two. Jane's military information service is considered the gold standard in military defense information, and they offer four free issues of Jane's Defence Weekly Today for new subscribers. You should also check out IBM's comprehensive, well-written white paper on the future for aerospace and defense companies who wish to remain competitive in today's market

Know the aerospace defense rules and regulations

Because of the sensitive nature of the industry, including security and safety concerns, aerospace companies are held to a higher standard than other manufacturing companies. Before you set up shop, find out what you need to do to comply with national, state and local regulations.

I recommend: Start with the US government's official guide to complying with laws and regulations that apply to the aerospace and defense industry. The Federal Aviation Administration's (FAA) Regulations and Policies page is also a good place to start.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Invest in R&D, then protect it. Have your contractors and suppliers agree to sign a non-disclosure agreement.
• •  When looking for a facility, consider the location. For example, right now Florida is heavily courting aerospace and defense companies.

The aerospace and defense industry is broad and multifaceted. If your business is one of the many aerospace and defense companies that requires industry-specific supplies, knowing how and where to source the best supplies is extremely important to your success.

Aerospace and defense suppliers provide everything from soup to nuts, literally. And sourcing your supplies requires special attention, as aerospace defense suppliers, supplies and equipment must meet a wide range of government and industry-issued standards and regulations. Whether your company builds defense equipment for the military, or commercial jet engines, it is important to be aware of such regulations when acquiring supplies. So, when seeking supplies for aerospace and defense, keep the following in mind:

1. Most aerospace and defense items are procured through a competitive bid process.

2. Virtually all products used by aerospace companies must meet stringent specifications.

3. Establishing a relationship with a consortium of contractors can open channels in the defense industry.

Action Steps
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Research current suppliers in the aerospace business

As your business enters into dealings in the aerospace and defense market, do a little research. Check information for the goods and services needed by contractors and suppliers. You often can find information such as pricing, specifications and customization details at company or government websites.

I recommend: Visit the Aerospace & Defense Industry Portal sponsored by Frost & Sullivan for information about defense and aerospace industry suppliers. Collect aerospace industry intelligence at Aerospacesuppliers.com. Your team will find the names of companies and the types of goods that they supply.

Learn the rules and regulations of the supplies for aerospace and defense industry

All products used by the aerospace and defense industries are subject to regulations and standards. Very high performance expectations and security concerns influence most supply decisions. For example, aerospace equipment and parts must adhere to AS9100 standards and defense supplies to MILSPEC regulations.

I recommend: Go to Business.gov for official defense product guidelines and applicable policies. Purchase aerospace industry and military standards and specifications from IHS. Its packet includes regulations from multiple sources and its website provides updated standards.

Locate aerospace and defense industry suppliers

Encourage your company to do research to find an aerospace and defense company for your materials. To find contractors that produce supplies for aerospace and defense, check with a consortium of defense industry businesses.

I recommend: Check with Eaton Aerospace to find information on suppliers for aerospace industries. Find contractors with JGB Enterprises, a consortium of more than 1,600 military suppliers.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The Federal Aviation Administration has its own set of policies for aerospace companies. See the Regulations and Policies page at the FAA website for specific guidelines pertaining to products for the FAA.

Companies continue to experiment with and develop new technologies to meet global needs. With the emphasis on international security and environmental issues, many businesses and governments have implemented new aerospace and defense equipment to address these concerns. Faster, lighter, safer, and more fuel efficient are important watchwords in the aerospace and defense industries. Using these innovations, both military and civilian aircraft have been redesigned and equipped with additional on-board technology.

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Very light jets (VLJs)

Very light jets (VLJs) are also sometimes referred to as microjets. These are single-pilot planes, weighing less than 10,000 pounds, that carry four to eight passengers and sometimes function as air taxis.

I recommend: Business Jet Traveler and Aviation International News discuss the technology behind microjets and their uses.

PurePower engines

PurePower engines developed from the geared turbofan (GTF) engines, which followed advanced technology fan integrators (ATFIs). Touted to decrease fuel use by 10% to 15%, PurePower engines are ideal for military planes because the engine noise level is significantly reduced.

I recommend: Flight Global gives greater insights into the latest designs of PurePower engines.

Military airlift market

Military airlift comprises both fixed-wing and rotary airlift applications. With ongoing wars and terrorism affecting many nations, military airlift is central to the defense strategies of many countries around the world.

I recommend: ASDWire discusses fixed-wing and rotary airlift in greater depth.

Unmanned aerial vehicle (UAV)

Also called an unmanned aircraft vehicle system (UAVS) or unmanned aircraft system (UAS), an unmanned aerial vehicle (UAV) is an aircraft without a pilot. Some follow preprogrammed flight plans, whereas others fly by remote control. UAVs are generally flown for military reconnaissance and attack, but civilian uses include firefighting or other missions too dangerous for humans.

I recommend: General Atomics, a company that makes unmanned aerial vehicles, provides information about their operation and accessories. AUVSI also offers news and networking opportunities.

Pulse detonation engine (PDE)

The pulse detonation engine (PDE), or the pulse detonation wave engine (PDWE), detonates rather than burns its fuel. This gives the engine the capacity to operate under different flight conditions with increased performance.

I recommend: Air Force Link describes a successful flight of a pulse detonation engine. The UCLA website explains and diagrams the functions and parts of the PDWE.

Synthetic aperture radar (SAR)

Most radar uses a large, rotating antenna, but the Synthetic-aperture radar (SAR) has many small, scattered, stationary antennas. By using many small antennas and combining all the signals, the SAR gets a more complete picture; however, it needs a significant amount of computer resources to process all the data. Often SARs are attached to aircraft to conduct remote sensing and mapping.

I recommend: Pentek reveals the design of the SAR system and its objectives. Sandia National Laboratories answers questions about SAR.