Global defense market adapts to international trends

A recent assessment of the global defense market examined how the business changed over the last five years in light of international events and trends.

The global economic downtown in 2008-2009 forced nations, especially in the European Union, to make structural reforms to costly, inefficient and ineffective procurement processes. As a result of the economic crisis, countries were forced to confront decades of overspending, ineffective inventory management and project overruns, CompaniesAndMarkets.com reports.

The North Atlantic Treaty Organization Procurement Organisation (NPO) was created in July 2012 to address those issues. The NPO announced the merging of NATO procurement agencies earlier this year, creating three new procurement organizations.

Global events in the past 18 months presented challenges to the historical defense paradigm. Although traditional nation states seeking CBRN capabilities still represent a major threat, the historical standard where treaties and other diplomatic agreements deterred parties from gaining weapons of mass destruction is less effective when dealing with terrorist organizations, according to CompaniesAndMarkets.com.

The ease with which chemical and biological technologies, which can serve dual purposes, travel in the modern globalized economy also presents a problem for nonproliferation efforts. The challenge of addressing the flow of potentially dangerous materials and those with the knowledge to use them reinforces the need for countries to maintain defense readiness without sacrificing quality in the face of budget cuts, CompaniesAndMarkets.com reports.