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The Rise of the Aerospace & Defense Industry

Jonathan Sweetman • December 12, 2022

The Aerospace and Defense (A&D) industry is vast and growing. It currently represents $781.4 billion of the current U.S. market. That market space includes an array of niche industries areas to include commercial airline industry, naval, and strategic military defense programs amongst many others.


There are many compounding factors that impact the growth rate of the A&D industry. Due to the subcategories noted that comprise the industry, it is relatively obvious how global affairs impact supply and demand. Notably, during times of war, there is an increase in demand for production and innovation. On the flip side, because of public policy set by governments around the world regarding COVID-19, there was a reduction in demand for commercial air services.


In addition, a combination of these factors created a kind of stagnation in A&D space when looking at the current war in Ukraine. NATO and its member nations response to the aggression of Russia created a demand for services and innovation, but because of COVID policies, supply chain chokes have limited the industries’ ability to meet those demands. A similar impact can be noted in regard to commercial air traffic.

Although there are many local and global factors that impact the industry as a whole, we still see growth. Current growth projections in the United States predict anywhere from 2.37% to 5.3% compound annual growth rate (CAGR) in the coming years. With that, an increase demand for great talent. The additional demand for talent adds to the current struggle of the A&D market which currently has an estimated 50,000 vacancies.

It's important to note some of these vacancies can be attributed to retention. It has been estimated that 78% of previously staffed vacancies are due to compensation and other benefits. In short, people are leaving their current jobs for employers that offer more pay and/or other benefits.

In summary, the A&D industry in the United States has a market value of nearly $1 Trillion, has a positive growth pattern, is heavily influenced by global affairs, currently has 50,000 vacancies, and struggles with retention. This begs the question, what problem does an organization in this space need to focus on?


Because the A&D industry is growing with constant demand, organizations need to be nimble. They need to able to meet demands quickly as local and global policies change. The focus needs to be on hiring and retaining top talent. Hiring top talent requires creative sourcing and talent acquisition strategies, and highly creative and competitive compensation/benefit packages that provide talent with the necessary incentives to stay.  



Sources and Additional References:

Aerospace & Defense Market Size 2022 and growth analysis. The Business Research Company. (n.d.). Retrieved December 5, 2022, from https://www.thebusinessresearchcompany.com/report/aerospace-defense-global-market-report

Chewning, E., Schrimper, M., Voelker, A., & Weddle, B. (2022, September 22). Debugging the software talent gap in aerospace and Defense. McKinsey & Company. Retrieved December 5, 2022, from https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/debugging-the-software-talent-gap-in-aerospace-and-defense

Gould, J., & Losey, S. (2022, October 31). Labor shortage still pinching aerospace and Defense Sector. Defense News. Retrieved December 5, 2022, from https://www.defensenews.com/industry/2022/10/31/labor-shortage-still-pinching-aerospace-and-defense-sector/

Perez, S. (2022, November 7). Aerospace Industries Association releases 2022 Facts & Figures Data highlighting the Aerospace & Defense Industry's Economic Impact. Aerospace Industries Association. Retrieved December 5, 2022, from https://www.aia-aerospace.org/news/2022-facts-and-figures-data/#:~:text=The%20A%26D%20workforce%20increased%20by%20approximately%206%2C000%20employees%20in%202021,up%20the%20remaining%2043%20percent.

Ryskamp, D. (2022, October 27). Aerospace and defense industry's demand for talent outpaces supply. Acara Solutions. Retrieved December 5, 2022, from https://acarasolutions.com/blog/recruiting-trends/aerospace-and-defense-industrys-demand-for-talent-outpaces-supply/

United States Aerospace and Defense Market Growth, size (2022 - 27). United States Aerospace and Defense Market Growth, Size (2022 - 27). (n.d.). Retrieved December 5, 2022, from https://www.mordorintelligence.com/industry-reports/us-aerospace-and-defense-market

Making Change: Black History Month 2025

By Greer Campbell • February 12, 2025
While we are only 2 months into 2025, it may feel we’ve lived many lifetimes already. February is Black History Month, and this year it is essential to celebrate and support leaders and people of influence more than ever. As media coverage and information continue to grow at the tip of our fingers, it’s easy to feel that being just one person, you can’t make a huge difference for huge causes, but that is not the case. As professionals, every year we meet with our team, with our supervisors, and focus on goal setting. One major suggestion when entering this planning stage, has always been to set achievable goals. Don’t create chaos in your mind trying to achieve an unachievable goal, our supervisors tell us. The same goes for support change and community. You don’t have to be a major donor to a cause, or a legislator, decision-maker to be the change you want to see. Black history month is and always has been essential to education and honoring stories and perspectives of those that paved the way for communities of the present and future. Below, we’ve outlined ways to be an ally and support Black History Month this month, and every month after. Shop Local, Black Owned Businesses Small businesses thrive off community support. Individual care and attention go into each service and product a local business produces. So, next time you need a coffee on the go, a brunch spot to meet your friends, a new work outfit, or a concert for your next weekend outing, do a google search of black owned businesses around you, try it out, and refer your friends. Educate Yourself Did you know it was a black woman, Marie Van Brittan Brown, that invented the first home security system, which included a camera, peepholes, and a two-way communication system? Or a black man, Garrett Morgan, who invented the 3-light traffic light? Many life changing and saving innovations are credited to people of color, specifically African American people. Doing research and educating yourself on black leaders and people of influence can continue the knowledge and support of the black community, and further the narrative that teams and ideas flourish under diverse perspectives. Volunteer Act, to make change. Research organizations and causes that support racial justice, social equality, and community development. Join groups that work together to support community and engage your skill sets to work together and make a change. Ask the Questions, Use Your Voice See something, say something. If you see a coworker experiencing discrimination, call it out. If your organization is not operating inclusively, set a meeting with your manager to start the conversation. For more information on causes to support, where to start, and how to make change, contact Diverse Talent.

Goal-Setting for Leaders: Embracing 2025 with Purpose

By Greer Campbell • January 8, 2025
As the New Year kicks off, leaders are invited to take time to redefine aspirations for personal and professional growth. Goal setting as a leader helps to push forth an environment of accountability and ambition within teams. By embracing SMART goals ( S pecific M easurable A chievable R elevant T ime-bound) leaders provide strategy and achievable goals that resonate with evolving demands of 2025. If you are finding yourself drawing a blank in beginning the stages of goal setting for 2025, see below for a guide and items to consider adding to your spread: Begin by reflecting on the past year. What went well? What challenges arose? What needs to be discontinued? Identifying achievements and problem areas from the previous year can help in defining where to focus in the new year. This reflective process lays the groundwork for future successes. Connect with different teams and lead discussions to gain all perspectives of previous work, with a clear understanding of past performance and data. Engage your Team. When charting the course for the company’s future, engaging the team in thoughtful dialogue to gather invaluable feedback about ongoing projects and programs helps leaders understand not only what has fueled the organization’s successes, but also what challenges remain. True growth stems not only from pursuing high targets, but also from embracing diverse perspectives and insights from your team. Set Accountability Measures. Once your goals are set, it’s imperative to continue check ins and maintain accountability throughout the year. Scheduling 360 reviews with your teams s not just a procedural obligation, but an essential practice to ensure everyone feels encouraged to receive and give feedback and gain valuable insights that can shape the professional development of the team. Moreover, continuing the refinement of established goals is vital for maintaining focus and direction. As your team engages in regular discussions about their objectives, it facilitates a dynamic process of assessment and adjustment. This ongoing refinement not only ensures that everyone remains aligned with the overall vision but also fosters individual accountability, making each team member a crucial part of the larger mission. Continue your Leadership Education and Professional Development. Continued education is at the forefront for continued success of your individual position and company. Sharpen your leadership skills and ensure you’re up to date on how to effectively lead your team with online or in person programs. Diverse Talent’s DT University is a virtual, 6-session course focused on refining leadership qualities and skills. Meet with a mentor each week and learn through facilitated conversations and workshops to enhance your leadership abilities. For more information, contact us at DT@diverse-talent.com , or visit our website at www.diverse-talent.com .
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