Emerging Markets in Aerospace: Navigating Federal Funding and Strategic Expansion
August 12, 2024
The aerospace and defense (A&D) industry is undergoing a transformative period with significant federal funding shifts towards emerging markets. This article will examine the trends in federal funding, the rise of new A&D hubs, and the strategic considerations companies must navigate to capitalize on these opportunities.
Trends in Federal Funding
Federal funding for the A&D sector has increased substantially, driven by the need to modernize military systems and address new geopolitical threats. Key trends include:
A shift from legacy markets is evident, with traditional hubs like Seattle and Los Angeles seeing less growth in federal funding compared to emerging markets such as Dallas. JLL Research has shown that in some instances, increases in federal funding are outpacing available talent in growing markets. This diversification of funding is spreading across commercial aviation, defense, and the commercialization of space, creating diverse opportunities for A&D firms.