Coronavirus (COVID-19) - Aerospace, Defense & Security sector impact - 04 August 2021

COVID-19 has now spread to over 198 countries with a total of more than 194 million confirmed cases and over 4 million deaths. The number of confirmed cases is the US is over 34 million, with cases again rising after sustained period of declines. As in many other countries, most new cases are of the Delta variant, with hospitalizations also on the rise (97% of those admitted are unvaccinated). Total COVID-19 vaccine doses administered has now surpassed the total number of confirmed cases, with a total of over 2.9 billion single vaccine doses administered. China leads in the total number of vaccinations, while Canada leads amongst top economies in percentage of population that has received at least one dose of the vaccine.

A concrete summary of the impact of COVID-19:

• Hiring prospects appear to have been gradually improving since April 2021
• Nearly 45% of employees report an increase in productivity during WFH
• Most offices will return to at least 50% capacity in the next six months
• 3 in 10 employees prefer to visit their office daily after the pandemic
• Technology will continue to change the way we work over the next three years
• Artificial intelligence is driving change in working practices
• Most respondents continue to work from home full-time

Acess our report for detailed sector insights:

• Airbus now expects commercial aerospace to recover to pre-COVID levels between 2023 and 2025, led by single-aisle aircraft. The potential of further lockdowns and travel bans will impact the Primes unevenly, with Boeing having a higher exposure to the faster recovering US domestic market

• Defense markets, although relatively shielded from both immediate demand and supply-side shocks, are looking vulnerable in many parts of the world as national debates are ignited around fiscal priorities. However, countries with large domestic capacity are utilizing defense as a stimulus measure and to offset the impact in related aerospace markets

• The future role of the military in supporting civil contingency planning is also under consideration, as is a redefinition of security to implicitly encompass public health and biosecurity aspects. Western supply chain concerns stemming from Chinese-US rivalry have also been exacerbated by COVID-19

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