Sustainability Cost in Global Defense Industry: 2017 Analysis and Forecast in New Research Report at ReportsnReports.com
Dallas, Texas (PRWEB) July 31, 2013 -- In spite of increasing awareness among customers about eco-friendly products, and the visible benefits of sustainability across the defense industry, there are a number of significant impediments to the deeper integration of sustainability in the defense sector, according to a new report: Sustainability in the Global Defense Industry 2013-2017: Trends and Opportunities, Budgets, Defense Industry Procurement, and Marketing Initiatives. Foremost amongst these is the general perception of the costliness of, or otherwise unnecessary nature of the investment in, sustainability measures. However, research suggests that such initiatives may in fact save money, and that sustainability should be considered more rigorously by those seeking to maximize the potential of the global defense market.
Financial & Political Pressure Limits Sustainability (http://www.reportsnreports.com/reports/266735-sustainability-in-the-global-defense-industry-2013-2014-trends-and-opportunities-budgets-defense-industry-procurement-and-marketing-initiatives.html)
A significant portion of respondents from the study – which saw an extensive online survey taken in June and July 2013 by 103 senior global defense industry buyers and suppliers, who cover C-level, directors, managers, technical and professional staff – identify ‘difficult to obtain finances’ and ‘lack of budget’ as key barriers to the implementation of sustainability.
As the top global defense spenders’ defense budgets are becoming increasingly constricted by broader economic pressures, the allocation of funds towards sustainability has often met with stiff opposition, as policy makers have apprehensions about its impact – despite thorough assessment, planning, budgeting, and projections. According to one senior executive of a defense organization in Europe:
‘Though implementation of sustainability is one of the top priorities for us, the European debt crisis has affected our long term business planning. Under the present scenario, business survival and short term financial pressure are important priorities, than to focus on sustainability’.
Furthermore, a C-level executive of a military defense contractor company operating in the European region claimed that:
‘Implementation of sustainability within our organization requires increased capital investments. Under these uncertain economic conditions, smaller firms like us with stringent budget constraints cannot focus on sustainability’.
In addition to these sentiments being expressed by industry insiders, they reflect the broader political and economic context of our times, with the majority of policy-makers and bureaucrats focusing on the process of decision-making such as business expenses and growth plans, at the expense of environmental issues. This therefore has a detrimental effect on the long term development of sustainability plans, and is a major concern for those concerned with sustainability in the global defense industry (http://www.reportsnreports.com/tags/defense-market-research.html). Furthermore, fears of a double-dip recession, rising inflation in many emerging economies, and decreasing global defense expenditure have hurt investor community sentiments, including in the defense sector.
The Cost Saving Impact of Sustainability in the Global Defense Industry
Most companies evaluate any new initiative by its financial impact, and most associate sustainability with high costs of implementation and low returns, leaving only a minority considering sustainability to be an efficient tool to cut costs. However research suggests that defense organizations expect – on average – to enjoy sustainability-related cost savings to be 3.4% of organizational expenditure.
As such, in addition to the moral compulsion towards eco-friendly measures, which can enhance reputation and attract new customers, it seems as though contrary to general perceptions, sustainability initiatives can have a positive effect on organizations in the global Defense industry, and that their proper analysis and implementation can reap financial rewards.
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Key Highlights
• In total, 53% of respondents each from the buyers' industry consider 'quality and durability' and 'renewable energy technologies' as important procurement practices to be implemented in 2013-2014 respectively.
• 'Corporate or brand websites' and 'email and newsletters' are highlighted as the most important marketing channels by 46% and 39% of respondents, respectively, from defense contractors. Moreover, 32% and 29% of respondents consider 'public relations' and 'conferences and events', respectively, among important marketing channels.
• Overall, 46% and 57% of respondents from defense contractors and other service providers identified 'efficiency and cost effectiveness' as the most important driver of green marketing.
• According to the survey, 'energy efficient facilities', 'alternative fuels' and 'ceramic matrix composites' are identified as the products and services that are most expected to see an increase in demand from defense organizations respectively.
• Survey results reveal that 35% and 28% of respondents from other service providers and defense contractors highlighted strategy to 'explain cost-benefit of sustainability to clients' as one of the important step used for marketing of green credentials.
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