Industrial GDP and the growth is something which always signifies the economic status of a nation. When there is boom in one particular industry and there is a significant amount of growth which is taking place in one industry, by default it leads to employment opportunities directly and indirectly.
When the industrial research figures which are showing a marginal decline in the growth of Defense sector, there are few areas where the concern is certainly evidential. One of the major developments which can be envisaged is the growth of the suppliers and the vendors.
When a major industrial sector is down, by default the procurement of the raw materials and the kind of services which are essential for the production and logistics of the industry also takes a hit. When we perceive the way the defense industries are facing a slow down, is it the time that the suppliers and the other channels should look at cutting down their operating margins and start supporting the growth revival. If so do these stake holders have such leverage that they can reduce the profit margins and work towards developing the system which can revive the growth in a overall manner.
Naturally when one of the key industry suffers, the small and medium scale enterprises which depends on this industry, will also take a blow and have a suffer. There should be a way out which these industrial networks can work upon. In the economies which are largely dependent on industrial contribution, such kind of slowdown can be a very worry some.
Should the government interfere and provide some stimulus packages to the revival of the industrial growth in over all, or it is too early for the government to react on the kind of slowdown, assuming that it is some corrections and adjustments prevailing in the industry.
But when we look at the other dimension of it, the defense industries are majorly dependent on the government spends of varied nations. In many a cases the spend on military and defense equipment’s upgrade or so is hampered only due to the constraints of economic slowdown and there is dearth of investments in to these segments. In such a case what kind of stimulus packages can be provided to these companies by the government?
In lieu of such a condition, what could be the role of stake holders of the Defense Industry, how the chain of suppliers and distribution network, defense sector companies can work towards the revival, what kind of synergy and integrated approach is required for these companies to come back in to the growth lines. Is it the time for the industrial associations to ponder on how about or still there is some time to work on this mode?