Kelly Ortberg
President The above video may contain forward-looking statements; please see our Safe Harbor Statement.
FireStorm™ integrated targeting system
Security needs are on the rise worldwide, as established and emerging countries seek to protect their borders, infrastructure and resources, and define their place in a 21st century world order. At the same time, global demand for commercial air travel is increasing, generating greater travel volumes, historically high load factors and robust demand for new aircraft.
Now more than ever, the aerospace and defense industry is benefiting from international growth, with an expanding population and emerging economic and military players enhancing market potential.
The International Air Transport Association forecasts an increase in commercial air travel revenue near 5 percent through 2015. And a growing middle class in many regions of the world will continue to drive that demand. For example, Boeing projects the number of commercial aircraft in service will double to 40,000 by 2031. At the same time, projections for business jet growth also show signs of positive movement. Estimates from aircraft manufacturers, including Bombardier and Embraer, forecast 25,000-30,000-plus business aircraft deliveries by 2031, led by growth in the United States, followed by Europe and a rapidly growing Chinese market.
On the government side, emerging markets including Brazil, Russia, and India, along with others throughout Southeast Asia and the Middle East, are projected to increase defense spending significantly in the coming years.
We have positively positioned Rockwell Collins to take advantage of this growth. In fact, we project that our international revenues will grow from about a third of revenues today to roughly 40 percent in 2020, due in large part to positions on new aircraft and our ability to respond to international security needs.
Greater market intimacy
We recognize that to sell globally, we must be global: connecting with local customers, understanding specific requirements and gaining familiarity with culture, languages and processes. Rockwell Collins’ network of operations spans 27 countries, and our long-standing presence in key markets, including China and Brazil, helps ensure our success there. We also continue to expand our presence in growing markets like the Middle East and India, including our 90,000-square-foot India Design Center with a staff of 500, and a new regional headquarters in Dubai. And in 2012, we announced an agreement to form a new joint venture with a subsidiary of AVIC to bring the latest surveillance products to China’s new COMAC C919 aircraft.
Aligning with emerging security challenges
For emerging countries, robust economic growth is often coupled with an enhanced need to address increasing security threats. The Brazilian Air Force’s new KC-390 tanker/transport aircraft — featuring Rockwell Collins avionics—is expected to play a prominent role across Latin America. In Europe, the Middle East and Australia, our FireStorm™ integrated targeting system can provide new levels of accuracy for air and ground targeting. And in the Asia-Pacific region, aging aircraft fleets and indigenous platforms offer opportunities for avionics and systems upgrades, along with advanced communication solutions.
Global solutions for the next generation of aircraft
A new generation of highly integrated, more efficient and more capable business and commercial aircraft is coming to market, and Rockwell Collins solutions will play a large role in their success. In the coming years, our flight decks, flight controls, cabin systems and information management solutions will be found on aircraft from manufacturers around the world.
