As we look ahead to DSEI 2021 next week at London’s ExCeL, it is important to reflect on the changes we have seen in our sector over the last 18 months and consider the key changes facing our sector in the year ahead.

Below we look at the expected trends for the sector as outlined in the recently published 2021 Aerospace and Defence industry outlook by Deloitte.

The global aerospace and defence (A&D) industry revenue is expected to begin to recover in 2021 after a difficult year in 2020. But this recovery will likely be uneven across the two key sectors, commercial aerospace and defence. The commercial aerospace sector has been significantly affected by the COVID-19 pandemic, which has led to a dramatic reduction in passenger traffic, in turn affecting aircraft demand. As a result, the commercial aerospace sector is expected to recover slowly, as travel demand is not expected to return to pre–COVID-19 levels before 2024. The defence sector is expected to remain stable in 2021, as most countries have not significantly reduced defence budgets and remain committed to sustaining their military capabilities. However, given the disruption in the complex global supply chain, some defence programs could face minor cost increases and schedule delays in 2021.

Four key trends worth highlighting include:

1. Sector to remain stable as countries plan to sustain their military capabilities

In 2021, defence budgets and revenues for defence contractors are expected to remain largely stable, as military programs continue to be critical to national defence, especially considering geopolitical tensions. Global defence spending is expected to grow about 2.8% in 2021, crossing the $2 trillion mark. Countries across the globe continue to spend on strengthening their militaries as geopolitical tensions intensify despite the global pandemic.

2. Satellite broadband, space exploration, and militarisation to drive growth

Despite the ongoing pandemic, space launches for the first half of 2020 were mostly at par with previous years; the 41 successful launches were only slightly below the five-year average of successful launches (43). As funding continues to increase and costs decline, the space industry is likely to experience increased opportunities, primarily in satellite broadband internet access. In 2020, space investments remained strong at $25.6 billion, and the momentum for investments is likely to remain solid in 2021 as well. Space launch services are expected to record strong growth in 2021, with the market forecast to grow more than 15.7% year over year. Space exploration is also expected to continue to evolve and grow in 2021 due to declining launch costs and advances in technology.

3. Industry to focus on transforming supply chains into more resilient and dynamic networks

Lower aircraft demand and restrictions on the movement of people and goods due to the pandemic led to a breakdown of many essential A&D supply chains. This has resulted in an impact on smaller suppliers, especially those with heavy exposure to commercial aerospace and the aftermarket business. As most A&D suppliers are highly specialised with unique expertise and complex equipment, they could continue to struggle to make quick changes to production in response to varying demand.

In 2021, the industry’s focus is likely to shift toward transforming supply chains into more resilient and dynamic networks, which could be done using strategies such as onshoring, vertical integration, and increased cyber defences.

4. Industry expected to focus on restructuring, cost reduction, and supply chain transformation in 2021

While the A&D industry, particularly commercial aerospace, is expected to face near-term challenges, the defence sector is expected to remain stable and weather the pandemic’s disruption. In 2021, commercial aerospace manufacturers are likely to focus on restructuring and cost reduction to position themselves for profitable growth in the long term. The industry is also likely to take advantage of the pandemic and drop in demand to transform supply chains. Also, A&D companies could pursue M&A opportunities to build scale and capture greater value. Long-term growth prospects for the A&D industry remain strong. The space sector and technological developments, such as advanced air mobility, hypersonics, electric propulsion, and hydrogen-powered aircraft, are likely to drive future growth for the industry.

Next week’s event at London’s ExCeL will focus on these key areas with full days dedicated to Industry and Supply Chain Engagement, Future Operational Requirements, Obtaining Skills for the Industry and Information Exploitation.

The team at Barum & Dewar are looking forward to the event and reconnecting with the industry and our valued contacts after what has been a challenging year for the sector.

Source: Deloitte

The Barum & Dewar team is delighted to be attending Defence and Security Equipment International (DSEI) 2021 between 14-17 September 2021 at ExCel London. The event creates the opportunity to re-unite the defence industry in full force for the first time in 18 months as it brings together the defence community and supply chain to network and build business relationships.

This year DSEI is different as it sees the live four-day event, as well as DSEI Connect- a virtual event platform running in conjunction to the main event which allows delegates to participate remotely - delivering an engaging and varied programme of keynote speakers, Defence engagement forums and networking opportunities. Key themes being addressed at this year’s event include Industry Engagement, Future Operational Requirements, Obtaining Skills and Information Exploitation, with a full conference day dedicated to each topic.

David Frame, Managing Director, commented, “DSEI 2021 presents a fantastic opportunity for the Defence industry to come together again after such a long time. The team and I are looking forward to re-connecting with contacts, visiting exhibition stands, attending the engagement forums and making new connections”.

The team will be at the conference from Tuesday to Thursday and would be delighted to meet with our valued clients and contacts. Please email d.frame@barumanddewar.com to arrange a meeting. 

Barum & Dewar has built up extensive experience working in the complex and challenging Subsea and Offshore sector for over 15 years. The harsh environments that typify the sector place considerable demands not only on personnel but on the equipment that is needed to support these operations. Our clients’ equipment is often extremely high value with IP ratings requiring bespoke protection solutions.

With access to the world’s leading ranges of waterproof and rugged cases, an in-house design team and a dedicated foam facility we are perfectly placed to support this sector. Whether the requirement is a heavy-duty plastic case, sealed aluminium or a bespoke designed container, Barum & Dewar has the supply partners for the most complex equipment protection challenges.

Barum & Dewar has completed many different projects in the sector ranging from bespoke one-off requirements through to ongoing supply contracts for large Offshore organisations operating globally. As such, B&D solutions are employed in every continent proving the industry leading quality of the products we provide. Our team have built extensive experience from the wide variety of projects delivered to date and further enhance this knowledge with cross sector experience from the Defence and Marine sectors due to their similar complex nature.

Recent sector wins and successful delivery of completed solutions have established Barum & Dewar as a knowledgeable and trusted partner for product protection within this sector. Looking ahead, the emergence of more collaborative projects between the likes of the MOD and Offshore/Marine companies will provide Barum & Dewar with a real opportunity to add value through our combined sector knowledge and innovative design capability.

“Our clients requirements range from specialist singular items right through to large scale production. The B&D service process remains the same regardless of project size. We are able to handle multiple projects simultaneously, accommodating evolving design changes and working to a very high standard and very often to tight deadlines, which is specifically relevant to this sector.” 

Emma Wilkinson, Business Development Manager.

Barum & Dewar is delighted to welcome Mark Speck to its UK Sales Team. Having previously worked for B&D, Mark re-joins the team as a Regional Sales Manager assuming responsibility for client account management and developing business growth in the South East of England. His appointment is driven by our continued commitment to further improving and developing exceptional client engagement and service.

Mark brings with him extensive experience of the UK specialist packaging sector having worked for large leading industry players, as well as knowledge of the Defence, Aerospace, Manufacturing and Automotive sectors.

“I have been working with the team at Barum & Dewar, both as part of the team and as a supplier to them, for a number of years now. This opportunity to re-join the team came at an excellent time for me as I was looking for a chance to once again be involved in a more technical challenge in my career. I am looking forward to getting to know all our key client accounts and working closely with them to deliver the service B&D has built its reputation on. I will bring a combination of energy, determination and experience to the role and with this, really make a difference in continuing to grow the business.” Mark commented.

Barum & Dewar’s Managing Director, David Frame, commented, “Our business is all about building trusted relationships with our clients and that can only be achieved by ensuring we firstly fully understand their needs and challenges. Mark has the specialist experience to be able to do this and brings not only professional integrity but enthusiasm and commitment to the team and our business.”

Mark can be contacted directly at m.speck@barumanddewar.comor on 07501 015653.

Following the annual Quality Assessment undertaken by leading global independently accredited certification body, NQA, Barum & Dewar is delighted to have retained BSI certification for our quality management system (ISO 9001). This certification is one we have held for over 20 years. 

ISO 9001 is an International Quality Management System Standard that specifies requirements within which an organisation demonstrates its ability to consistently provide product or service to meet customer and legal requirements, enhancing customer satisfaction and opening the way to continual improvement.

Technical Design Manager, Andy Harrison, said,

“At Barum & Dewar we have built our reputation on the quality of our products. It is hugely important to keep striving for better to ensure we keep improving our business in an effort to stay one step ahead of a highly competitive industry. The achievement of this accreditation highlights our continued focus on quality as a key priority.”

David Frame, Managing Director of Barum & Dewar, said,

“Quality sits at the heart of everything we do. Our processes are regularly reviewed to ensure they effectively support our quality objectives, so that we can continue to deliver highly dependable solutions for all of our clients. To have these processes once again confirmed as meeting the ISO 9001:2015 accreditation is a reflection of our success in this area and highlights our ongoing commitment to continuous improvement.”