Jan 13, 2025
Talent Acquisition in the Aerospace and Defense Industry: Challenges and
Strategic Responses
The aerospace and defense (A&D) industry faces a critical challenge: a growing talent shortage
compounded by rising employee turnover and heightened competition from other sectors. As
companies ramp up production to meet increasing demand, driven by rebounding air travel,
heightened geopolitical tensions, and renewed interest in space exploration, the need for a robust
workforce strategy has never been greater.
Rising Turnover and Workforce Pressures
The A&D sector is grappling with significant turnover, with 69% of companies reporting
increased attrition in the 2022 fiscal year. This mirrors broader labor market trends: in 2021, 47
million Americans quit or changed jobs, driven by a desire for better pay, career advancement,
and flexibility. These pressures are acutely felt in A&D, where companies not only compete
within the industry but also face stiff competition from technology and other sectors seeking
employees with technical expertise. Beyond turnover, 41% of companies noted worsening employee engagement in the 2022 fiscal
year. The lingering effects of the COVID-19 pandemic, including supply chain disruptions and
operational challenges, have exacerbated these issues, making workforce management a top
priority. While the pandemic is years behind us now, data sourced from previous years can
inform A&D contractors about how to navigate this delicate landscape in the present and the
future.
Adapting to a New Talent Landscape
To address these challenges imposed by the hardships of the Covid years, many A&D companies
are reimagining their talent strategies, focusing on four key areas:
1. Strengthening Employee Value Propositions (EVP):
Companies are enhancing their EVPs by offering programs that emphasize mental
well-being, leadership development, and technical education. Many are also focusing on
career development, employee recognition, compensation improvements, and flexible
work arrangements to attract and retain talent.
2. Flexible Work Models:
While remote work remains challenging for high-touch manufacturing roles, 65% of
respondents believe they have successfully implemented flexible work arrangements,
including staggered shifts and four-day workweeks. Hybrid and remote work options
have also expanded for eligible employees, reflecting broader trends toward workplace
flexibility.
3. Reskilling and Upskilling:
A&Dcompanies are investing in upskilling initiatives focused on digital skills, data
analytics, AI, machine learning, and cybersecurity. Partnerships with universities to offer
STEMcourses and mentorship programs are helping bridge the skills gap, ensuring a
pipeline of future-ready talent.
4. Diversity, Equity, and Inclusion (DEI):
DEI remains a priority, with many companies launching detailed DEI strategies that
include executive advisory boards and benchmarking reports. These initiatives aim to
improve diversity across gender, supplier demographics, and other key metrics, fostering
a more inclusive workforce.
Flexible Work: A Key Differentiator
The Covid-19 pandemic accelerated the adoption of flexible work arrangements in A&D. 84% of
companies now offer remote options, while 72% have hybrid models requiring some in-person
presence. Flexible hours are also widespread, although their adoption dropped slightly from 85%
to 81%. As companies explore long-term solutions, they are evaluating real estate needs, with
78% planning moderate to extensive changes to their real estate strategies.
Balancing flexibility with the need for on-site work in manufacturing roles presents ongoing
challenges, but the sector is committed to finding sustainable models that support both business
needs and employee preferences.
Strategic Workforce Transformation
Looking ahead, A&D companies recognize the imperative to transform their workforces to meet
future demands. This includes developing a more dynamic, hybrid workforce equipped with
digital and technical skills. Automation and new operating models will play a critical role in
driving efficiency and innovation.
Deltek Costpoint: Supporting Talent Acquisition and Management
Deltek Costpoint offers A&D companies a strategic advantage by streamlining HR and talent
management processes. Its integrated, automated HR tools simplify recruitment, onboarding, and
compliance, allowing HR teams to focus on strategic initiatives. Costpoint’s analytics
capabilities also provide valuable insights into workforce performance and skills gaps, enabling
proactive talent planning. By fostering more agile HR practices and supporting remote work through cloud-based
solutions, Deltek Costpoint empowers A&D firms to attract and retain top digital talent in an
increasingly competitive landscape.
Conclusion
The aerospace and defense sector is at a critical juncture. To thrive in a competitive talent
market, companies must invest in innovative workforce strategies that prioritize flexibility,
career development, and inclusivity. By fostering a culture of continuous learning and embracing
new work models, A&D firms can position themselves as employers of choice, securing the
talent needed to drive innovation and growth in the years ahead.
Jan 2, 2025
We are excited to announce that Jarrod Brown, CSCP, CPIM, is joining the PDS Consulting Solutions, LLC team as a Senior Costpoint Manufacturing Consultant!
Jarrod has over 16 years of experience in the advanced materials manufacturing industry, including 14 years with ATK/Northrop Grumman (NGC). During this time, he held various Supply Chain leadership roles, overseeing production control and operations planning, inventory management, MRP analysis, procurement, and logistics activities. In 2014, Jarrod was part of the ATK/NGC Costpoint implementation team, where he gained advanced expertise in Costpoint, TipQA, and EWI systems. Over the subsequent 10 years, he continued to work within the business, leveraging and expanding his knowledge of these systems. His numerous Supply Chain roles deepened his expertise in the materials modules within Costpoint, establishing him as a Subject Matter Expert (SME) in many areas. Jarrod earned his Bachelor of Science in Supply Chain Management from Weber State University in Ogden, Utah. He also holds APICS CPIM and CSCP certifications through the Association for Supply Chain Management (ASCM).
Dec 18, 2024
Addressing Compliance Challenges with Deltek Costpoint: Ensuring ITAR Adherence for Government Contractors
The International Traffic in Arms Regulations (ITAR) impose rigorous standards on organizations involved in the production, export, or brokering of defense-related items and technical data listed under the U.S. Munitions List (USML). These regulations extend to military electronics, spacecraft, firearms, and even related documentation, viz., design schematics and technical diagrams. ITAR compliance is a cornerstone of U.S. national security, aiming to prevent sensitive information from reaching unauthorized domestic or foreign entities.
For defense contractors, compliance isn’t optional—it’s critical. Violations can lead to substantial penalties, including fines of up to $1 million per criminal violation, civil penalties of up to $500,000 per infraction, and prison sentences of up to 10 years. This underscores the imperative for a comprehensive, reliable tool to manage ITAR compliance effectively. Deltek Costpoint provides such a solution, offering tailored capabilities that simplify and strengthen adherence to ITAR’s stringent requirements.
How Deltek Costpoint Addresses ITAR Compliance Challenges
Secure Data Management and Control
Costpoint provides a centralized repository for all ITAR-controlled data, ensuring sensitive information is stored and accessed securely. This mitigates risks associated with data sprawl or unauthorized access, which can lead to compliance failures and potentially harsh legal consequences.
Enhanced Access Control Mechanisms
By implementing role-based access permissions, Costpoint restricts data visibility and interactions to authorized users only. Its detailed audit trails track all user activities, offering a robust mechanism for demonstrating compliance during audits or investigations.
Streamlined Compliance Processes
Costpoint reduces the burden of manual compliance management through automated workflows for tasks like restricted party screenings and export controls. These automation tools not only reduce human error but also increase operational efficiency.
Comprehensive Reporting Tools
Deltek’s advanced reporting capabilities allow contractors to quickly generate detailed records of data access, usage, and export activities. These tools make it easier for companies to prepare for audits and maintain transparency with regulatory bodies.
Secure Cloud Infrastructure for ITAR Data
With its GovCon Cloud Moderate (GCCM) offering, Costpoint ensures that all ITAR-sensitive information is hosted in a highly secure environment that meets DFARS 252.204-7012 requirements. This level of security is crucial for companies managing federally regulated data.
Adaptability to Supply Chain Complexities
ITAR compliance often extends beyond the primary contractor to include suppliers and third-party partners. Costpoint’s ability to integrate seamlessly across networks ensures compliance protocols are maintained throughout the supply chain without operational disruptions.
Why Deltek Costpoint Excels Over Alternatives
Compared to other ERP platforms, Deltek Costpoint stands out for its scalability, security, and industry focus. Its ability to centralize operations while accommodating complex defense workflows makes it uniquely positioned to handle the dynamic needs of government contractors. Unlike other solutions that may lack depth or tailored features, Costpoint offers an ERP ecosystem designed explicitly to support companies in highly regulated industries like defense.
With ITAR violations carrying severe consequences, contractors cannot afford inadequacies in their compliance systems. Deltek Costpoint goes beyond basic management to streamline processes, safeguard sensitive information, and reduce risks, enabling government contractors to remain compliant while maintaining operational excellence. By investing in Costpoint, defense firms gain a strategic advantage in navigating the challenges posed by ITAR and other stringent regulatory requirements.
Nov 20, 2024
Please join us in congratulating PDS team mate, Amy Malkowski, on her promotion to IT Manager!
Nov 5, 2024
NEW BLOG POST: COMPLIANCE / FINANCE
Finance teams are increasingly turning to technology to enhance financial performance. Despite some financial metrics, such as growth rates and P/L margins, softening this year compared to 2022’s historic highs, the results still outperform most years recorded by the Clarity survey. As finance professionals focus on managing costs and profitability, they also face talent pressures that impact the government contracting industry. Fortunately, technology serves as a force multiplier, with tools like AI helping reduce costs and allowing personnel to concentrate on more strategic tasks.
In the government contracting industry, technology such as Enterprise Resource Planning (ERP) systems can significantly mitigate and facilitate compliance issues. ERP systems streamline processes and provide comprehensive oversight, ensuring that financial and operational activities align with regulatory requirements. These systems offer integrated solutions for tracking expenses, managing contracts, and maintaining detailed records, which are essential for compliance with government contracts. By automating compliance-related tasks, ERP systems reduce the risk of human error, improve accuracy, and ensure that companies can quickly adapt to new regulations.
High performers in the financial sector are not only focusing on talent acquisition and retention but also utilizing technology to manage audits and compliance efficiently. The systematic approach to audits, supported by dedicated resources, reflects a broader trend of leveraging technology to optimize financial and operational functions. This strategy allows companies to remain agile and competitive, even as they face challenges related to talent and compliance in the complex landscape of government contracting.
Overall, high-performing financial teams in the government contracting industry demonstrate how technology, particularly ERP systems, can address compliance issues effectively while also optimizing other critical business functions. By staying ahead of the curve and embracing digital transformation, these teams set a benchmark for operational excellence and regulatory adherence.
Why Deltek Costpoint™ is the BEST ERP for compliance and DoD requirements
Compliance with Government Regulations: Costpoint™ is specifically designed to help government contractors meet stringent regulatory requirements. It ensures compliance with standards such as FAR (Federal Acquisition Regulation), DFARS (Defense Federal Acquisition Regulation Supplement), and CAS (Cost Accounting Standards), making it easier for contractors to adhere to government mandates.
Project Management: Costpoint™ offers comprehensive project management capabilities that are essential for government contractors. It integrates project planning, budgeting, scheduling, and resource management, ensuring that projects are delivered on time and within budget while meeting all contractual requirements.
Accurate Cost Accounting: Costpoint™ provides robust cost accounting features that allow government contractors to track and manage costs accurately. Its detailed cost reporting and allocation capabilities ensure precise cost control, which is critical for government contracts that require meticulous cost tracking and auditing.
Enhanced Security and Data Protection: Government contractors handle sensitive information, and Costpoint™ addresses this need with advanced security features. It offers strong data protection measures, including encryption, access controls, and compliance with cybersecurity standards such as NIST (National Institute of Standards and Technology).
Scalability and Flexibility: Costpoint™ is highly scalable and can accommodate the growth and evolving needs of government contractors. Its flexible architecture allows for customization to meet specific contract requirements, making it suitable for contractors of all sizes, from small businesses to large enterprises.
Nov 5, 2024
Please join us in congratulating PDS team mate, Jesse Kepner, CSCP, on his promotion to Director of Costpoint Materials & Mfg!
