Current Size The aerospace industry mainly comprises civil and military aircraft which have become part and parcel of modern-day life. It is estimated that the global aerospace industry is worth US$ 700 billion. This comprises the sectors of commercial aerospace, defense, space, and general aviation The United State of America is estimated to have spent US$253 billion in the year 2008 alone in military investments. The commercial aviation industry involves a considerable amount of money and is dominated by Boeing–Airbus duopoly. The status is, however, changing as other foreign companies are entering the market which is estimated to be worth an excess of $200 billion. The number is still expected to rise at a rate of 3.5% over the next 15 years. Most airlines now prefer to replace their old aircraft with new ones, as opposed to maintenance, repair, and overhaul (MRO). In the year 2011, US airlines replaced their fleets with a preference for Airbus. The orders made by the company reached a record of 1750 aircraft. (Electronic Subscription Service, 2005) On a local level, the industry giant Boeing announced its plan to move out of Wichita, Kansas City, citing increased operational costs. With the aerospace industry generating revenues to the tune of US$ 2.1 billion, this move will lead to unemployment for more than 2000 employees working for the company and loss in revenue (Carlos, 2012). Growth Potential The global aerospace industry had several years of sustained growth even after the global economic crunch of 2008. In spite of a number of factors undermining the overall global economy, the industry showed considerable strength in the same year. Total sales of aerospace products and parts were 15.5 billion, an increase of 3.5% over 2007, according to the U.S. Bureau of Census. The defense industry has adapted new and different business models in a bid to meet the industry’s requirements. There have been concerns about the energy requirements and the need for data capture which has ultimately led to new market opportunities for this sector. However, underinvestment from the Department of Defense in R and D may lead to a situation where the industry will lack the facilities to come up with new technologies and products. Industry Trends As mentioned above, the U.S airlines began replacing their fleet in 2011. This is because the current trend in the aerospace industry is to cut down costs on fuel. Fuel accounts for about one-third of operational costs, and considering a 12% increase in oil prices translates to 0.4% point reduction in global economic growth, it was probably the best decision (Electronic Subscription Service, 2005). Technological advancements have given the aerospace industry opportunity to grow beyond expectations. The national security spacecraft, for instance, wished to have the ability to be able to launch on-demand. In response, the Department Of Defense and the commercial industry are currently working together to come up with a set of guidelines intended to ensure operationally responsive launches. The telecommunications sector encouraged further growth in the aerospace industries as more satellites needed to be launched into space. However, the late 1990s downturn saw an overproduction of the equipment which led to reduced la