Blog Layout

The Rise of the Aerospace & Defense Industry

Jonathan Sweetman • Dec 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

Mid-Year Business Update

By Greer Campbell • 04 Sep, 2024
The job market, quiet quitting, uprise of the digital age, and the decline of DEI? The professional world moves quickly, and it’s easy to get lost in the conundrum of new news. Here is your mid-year update. AI is Updating…Surprise Surprise Generative AI is updating their experience from transactional to a more personal approach. Individuals use of the internet will change, implementing 2-way conversation and solution focused models allowing users to get a more catered response. These updates will grant users a deeper understanding, and companies a more “human-like” vision of the brand. The New Future of Planning The concept of tradition has been molded, shifted, and completely torn apart in the past decade. Most of these shifts are seen as positive, yet some pose greater challenges than not. The rise of cost of living and cost of consummation has individuals adjusting their priorities. The global pandemic also threw a wrench in the ways of planning, pushing organizations to shift focus on fluidity and flexibility to ensure retention and growth. The Not So Quiet Quitting Quiet Quitting is a term that has been frequently thrown around since the pandemic. Commonly coined by social media, the act of quiet quitting refers to an employee doing the minimum requirements of their job, lacking effort, creativity, and excitement. According to a Gallup survey of workers taken in June 2022, quiet quitters make up at least 50% of the U.S. workforce. This act can be avoided by managers and organizations through regular check ins, employee surveys, and attention to creating a work-life balance. Technology in 2024: Helpful or Overwhelming? Tech advances are happening so rapidly, many feel that it’s become almost impossible to keep up. The advancement of technology is meant to make life easier, however some feel it’s doing the opposite. In addition to user error, technology is also playing a major part in mental health deterioration and wellbeing. The battle for attention, the pull of creativity, and most importantly – the brain rot. Are we letting this go too far?

Interview Questions Your Team Should Avoid

By Greer Campbell • 04 Mar, 2024
Growing your organization requires the right team. Hiring the right team requires the right approach. Vetting and getting to know potential hires is key to building an effective culture. Interviewing candidates is your first chance to understanding applicants, their skill sets, their professional goals, and more. But just as you are vetting applicants, they are vetting you. The interview process allows applicants to gain a better understanding of your organization’s goals, culture, and needs. Setting the right example and perspective on your company begins with your interviews. One wrong or controversial question, and that could break a potential beneficial business relationship. See below for examples of questions to avoid asking candidates in interviews, and why. Are you planning to start a family soon/Are you planning to expand your family soon? While this seems like an obvious conflict, many companies are still asking this to potential employers. This makes the applicant feel like that would make or break their candidacy. Mothers and fathers in business want to feel support from their employer, an unspoken sense of support. Starting a family or having a family does not dictate a candidate’s professional abilities, therefore there is no reason to ask. What are your religious, political, and sexual stances? Again, these are personal attributes that do not affect a candidate’s ability to perform professionally, therefore can be seen as inappropriate and reason for termination of consideration for candidacy. Where are you originally from? While on the surface this may seem like an innocent question, it is illegal under Title VII of the Civil Rights Act of 1964 making it illegal to discriminate against someone on the basis of national origin. If you ask, you could be accused of discriminating against them. You can, however, ask if the candidate will be able to report to the position location required by the job opening. How old are you? It is illegal to ask someone’s age, you are only allowed to confirm the candidate is of legal age to work full time, being 18 years old. What salary did you make at your previous role? Many states have implemented a salary transparency law, enforcing job postings and descriptions must portray the salary range for the position. Even if your state does not have this law, it is safe to avoid asking a person’s salary history. Instead, share the salary range and confirm the candidate’s expectations are within the range. As the market continues to be competitive and ever changing, engaging a 3 rd party service like Diverse Talent can greatly benefit in finding your organization’s right fit based on our industry expertise.
Show More
Share by: