Page 25 - THE SOUTH CHINA BUSINESS JOURNAL

RES
NATU
DEFENS E & AERO
Business and
OURCES
government
must innovate
to protect the
environment Trend: In New
York last month,
world leaders called for
a heightened focus on adaptation
to climate change, the cost of
lost biodiversity, and the waste of
potentially valuable materials that
end up polluting the seas and the
land. The just-released report by
former UN Secretary General Ban
Ki-Moon on climate adaptation and
the Climate Action Summit that
convened on September 23 call on
companies to show leadership and
deliver measurable results.
Facts to remember: Electronic
waste is growing rapidly, reaching
50 million tons annually with an
estimated value of lost materials of
over $60 billion. Less than 20% of
e-waste is recycled in some way. The
accelerating transition to e-mobility
will dramatically increase the volume
of secondary electronic products that
will require reprocessing.
Recommendations: We will
encourage UNGA participants to
embrace a systemic approach: the key
systems that require transformation
and strengthening are major urban
centers, infrastructure, food supplies,
water, and natural environment.
Each of these systems requires risk
management and finance to improve
resiliency and mitigate risks. Each
requires business engagement to
implement any solutions on a large
scale. Governments, consumers, and
investors should recognize resource
efficiency as a hallmark of good
management, responsible governance
and quality of production. It is up
to the business community to offer
sustainability solutions that can
work. Given the scale, sophisticated
governance structures and global
reach of U.S. business, we can and
should lead in this effort.
D .c. tODAY
SPACE
Exports will play
a growing role
Trend: Commercial aerospace
exports will trend up over the
next three years while defense
aerospace exports are also expected
to grow, though less rapidly. Globally, the
U.S. has enjoyed historic international
defense sales over the past decade. Sales
of aviation platforms and missile defense
systems, predominantly to allies in Asia
and the Middle East, has accounted for the
majority of foreign defense sales during this
decade. We are soon to reach saturation in
these markets for this type of capability, and
we will see a shift from platform acquisitions
to system sustainment. Finally, we see
mounting military industrial competition
in which non-U.S. firms promise adequate
capability at competitive prices and without
the legislated controls that come with U.S.-
provided capability.
Facts to Remember: In 2018, the defense
and aerospace sector supported more than
2.5 million jobs and accounted for more
than $900 billion in sales. Commercial
aerospace exports exceeded $131 billion while
defense sector aerospace exports exceeded
$19 billion. The U.S. defense and aerospace
export outlook remains robust, but head
winds are brewing that have the potential to
challenge our industrial dominance in these
two sectors over the next decade. U.S defense
spending is expected to decline after 2022,
prodding U.S. defense and aerospace firms to
pursue an increase in global exports to offset
the downshift at home.
Recommendations: U.S. industrial
innovation must remain our focus today
to ensure we continue to capture lucrative
global market share tomorrow. We must
partner to ensure policy, procedures, and
legislation provide the needed tools for
our industries to maintain and grow global
market share.■
South China Business Journal 22