The global aerospace and defense sector grew nearly 4 percent in 2015 led by the commercial subsector and to a lesser extent the defense subsector, according to a new study by the consulting firm Deloitte.
The aerospace and defense sector grew 3.8 percent, or $24.8 billion, to $674.4 billion in 2015 from $649.7 billion in 2014 while core operating earnings were relatively flat, $70.2 billion in 2015 versus $70.4 billion in 2014, says the report, 2016 Global Aerospace and Defense Sector Financial Performance Study.
Overall, the commercial subsector was up 6.3 percent in 2015 driven by an increase in aircraft deliveries with Europe’s Airbus Group up 6.2 percent in terms of revenue and Boeing [BA] up 5.9 percent, Deloitte says.
The global defense subsector was up 1.7 percent, or $5.8 billion, in 2015 with the U.S. defense industry showing just under a percent decline versus a 2.2 percent decline in 2015, while European defense companies saw 6.8 percent growth in 2015 versus a 2.7 percent decline the previous year, the report says.
Deloitte also says that total global employment in the aerospace and defense sector ticked up less than a half-percent in 2015 to 2.05 million.
Boeing is the largest company in the sector with $96.1 billion in sales and with the highest core operating earnings, $7.7 billion, the study says. Airbus was the second largest company in 2015 followed by Lockheed Martin [LMT], it says.