The outbreak of COVID19 has created a global economic crisis which had a deep impact on business operations across various industries. Due to the fast-paced transmission of the virus, the governments enabled restrictions on various operations such as transportation and mass gathering which highly impacted the supply chain of all industry and defense industry is no exception.
However, the effect on defense industry is not significantly high due to the pre-approved heavy funding and the defense deals directly impact the national security. Although, due to the restrictions on various operations, the manufacturing has been stopped and the deliverables might get delayed.
The defense industry’s growth is anticipated to decline for couple of years i.e. 2020 to 2023 owing to the production delays, labor shortage and reduce defense budgets in few countries. In order to tackle the challenges presented by the COVID19 pandemic, the industry needs to strengthen the supply chain by embracing digital technologies and increase investments in the development of future weapons that are cost effective, sustainable and will remain exclusive for a longer duration.