byBrookeWeddle,GiuliettaPoltronieri,andHuguesLavandierwithAndyVoelker©GettyImagesJuly2024Aerospace&DefensePracticeThetalentgap:ThevalueatstakeforglobalaerospaceanddefenseTheaerospaceanddefenseindustryisunderpressurefromlaborshortfallsandincreasingdemand.Byfocusingonfivetalentimperatives,itcanunlockproductivityandcreatevalue.Theglobalaerospaceanddefense(A&D)sectorisbooming.Thereturnofairtraveltoprepandemiclevelsisonefactorbehindsoaringdemand.Anotherisgreatergeopoliticalinstability,whichhasledtogrowingnationaldefensespending(inEurope,forexample)andrisingdemandforammunition.1Ordervolumesacrossproductshaveincreasedsignificantly,andaburstoftalentrecruitingisunderwayinthesector.2However,headwindspersist.Matchingthegrowingdemandfortalentwiththerightlaborsupplyhasbeenanenduringchallenge.Thistalentgapcontinuestocausesubstantialstrainonemployers,affectingtheirabilitytocompetewithothersectorsfortoptalent,hireatthepacerequired,reducethetimetoproficiency,andretainkeyemployees—allofwhichhaveanimpactonperformance.Asaresult,thevalueatstakeforA&Dorganizationshasneverbeenhigher.Companiesthattreattheneedfortalentasatoppriorityseehighertotalshareholderreturns(TSR)thantheircompetitors.Below,wesharehighlightsfromournewresearchandanalysis,whichshowthatforamedian-sizeA&Dcompany,closingthegapbetweentalentsupplyanddemandcouldbeworth...
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