Aerospace & Defense News - Defense Europe.

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New York, Geneva (AirGuideBusiness - Aerospace & Defense News - Defense Europe) Mar 4, 2012

NATO will revise security goals in wake of budget cuts NATO will have to identify and pursue only its top goals, given the shrinking of its members' defense budgets, a U.S. defense official says. At the next NATO summit, which will be held in May in Chicago, the alliance will work on a new plan it calls Smart Defense, which focuses on projects that can be accomplished in a time of reduced funding, says James Miller, acting U.S. undersecretary of defense for policy. Mar 2, 2012

Deloitte Touche Tohmatsu Deloitte 2012 Aerospace and Defense Outlook Indicates Optimism for Commercial Aircraft Sector and Caution for Defense. According to the 2012 Global aerospace and defense outlook: A tale of two industries launched today by Deloitte Touche Tohmatsu Limited's (DTTL) Global Manufacturing Industry group, the commercial aircraft sector is likely to enter a prolonged upcycle in production in 2012 as a result of increasing demand for leisure and business travel, particularly in the Asia Pacific region, while the global defense market is expected to experience flat or declining growth due to anticipated decreases in military spending, principally in the United States and Europe. According to the report, the growth in the commercial aircraft industry is expected to be driven by continued production and development of next-generation aircraft programs that aim to address increasing fuel costs. "The commercial aircraft sector has taken an innovative approach to responding to increasing fuel costs," said Tom Captain, Global Aerospace and Defense sector leader, DTTL. "The development of fuel-efficient aircrafts that utilize next-generation engine technology has resulted in a significant rise in aircraft orders. However, certain suppliers will be challenged to keep pace with the expected increase in production rates and new program introductions this year." Meanwhile, continued global economic challenges coupled with revenue gaps and cost pressures may result in margin contraction for global defense players. As a result, the defense sector is likely to undergo more streamlining of its cost structure, divestiture of non-core assets, and additions of gap filling, as well as transformation acquisitions. "Expect to see more aggressive competition for the fewer large defense programs of record, as well as growth in defense sales to India, Brazil, the United Arab Emirates...

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