Raksha Anirveda
cover story
Global Defence industry in the Fallout of COVID-19 The COVID-19 outbreak world over has virtually brought the industry and business to a halt. For some businesses the effect of the pandemic will be very pronounced in the short term, but for defence industry it may take some more time to manifest the COVID-19 effect By Sri Krishna
A 14
s the world reels under the impact of novel Coronavirus COVID-19 pandemic, the industry and business activities virtually have come to a halt. It has badly affected the nations with strong defence industry base like US, Italy, France, Spain, Germany and UK to name a few. According to a report US aerospace industry alone lost approximately $200 billion of market value. Since January 1, the S&P Aerospace and Defence Select Industry Index, which includes industry leaders such as Boeing, Lockheed Martin, and Northrop Grumman, were down by above 40 per cent.
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According to Paul Sharre of the Center for a New American Security, the supply chain’s future is challenging and that government money is likely to keep coming for defence companies. The State Department warned that as a result of staff teleworking for the foreseeable future, the Directorate of Defence Trade Controls (DDTC) might be slow in responding to the industry needs, which will result in delays in the US defence industry exports. The major impact points on the defence industry because of the spread of COVID-19: The Production and manufacturing facilities and supply chains as also business development efforts could be affected – some will lose, some may win. The demand for defence equipment and related services could decline with companies having to make tough choices impacting finances and competencies.
