Avascent predicts increased competition for Western defense suppliers

By Marjorie Censer / May 20, 2016 at 3:39 PM

In a new white paper, consulting firm Avascent warns that Western defense suppliers "will face increased competition in international markets historically considered to be the near exclusive preserve of American and European firms."

In particular, authors Daniel Yoon and Doug Berenson write, these companies will see more nations try to meet their requirements using companies based in their own country, a growing role for non-Western suppliers and the "encroachment" of Chinese and Russian suppliers in markets previously aligned with Western companies.

"While U.S. and European companies retain a number of critical advantages, they increasingly compete in a marketplace that requires new business strategies and penalizes the status quo," the report adds.

In recent years, U.S. defense contractors have been focused on boosting their international sales. Avascent says foreign sales of U.S.-made defense equipment hit $45.1 billion in 2015, up from $24.2 billion in 2010. Domestic sales, on the other hand, fell to $84.7 billion, down from $112.8 billion in 2010.

Click here to read the full report.

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