Avascent: A&D contractors expect more competition

Avascent consultants said today that a survey of contracting executives shows companies are expecting increased global competition within the next year.

During a webinar with reporters Wednesday, Jon Barney, managing director at Avascent, said a survey launched in May has received about 100 responses from contracting executives -- from managers through chief executives -- around the world.

The vast majority of respondents, he said, anticipate a more cutthroat market.

"You need to recognize that the competitive landscape is going to continue to grow in intensity," Barney said.

He said the sources of competition are also changing; though the United States remains the most frequently named source of competition, "increasingly we have seen China, Russia coming up . . . as sources of competition."

"Companies need to understand that the global competitive landscape is not just about the U.S. and Western Europe anymore," Barney added.

He noted that the survey found many executives don't feel their organizations are ready to win in this environment. "It's not as simple just to sell a product anymore," Barney said, noting that companies feel they must deliver "solutions."