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This guest blog post at Aerospace Diary, an online forum for aerospace professionals, is based on Arthur D. Little's Viewpoint that takes the same title. The aerospace and defense (A&D) industry today struggles with a duality: defense-driven segments are taking hits due to significant governmental budget cuts, while commercial aircraft manufacturing enjoys double-digit growth. A supplier of the future will not only need to be able to handle greater volumes efficiently, but also provide a more complex offering. The industry outlook may be bright and the challenges painfully real, but suppliers in this industry have no choice but transformation.