How Trump Could Impact the Aerospace and Defense Industry

As Donald Trump returns to the White House, the aerospace and defense industry braces for another unpredictable chapter. Known for his bold decisions and unconventional approach, Trump's second term promises to reshape the sector in exciting and uncertain ways. With change on the horizon, are your talent and recruitment strategies ready to stay ahead in what could be a turbulent few years?"

This guide will explore the key talking points in the aerospace and defense industry about what potentially lies ahead under the Trump administration. We also explore recruitment strategies to help businesses attract the talent they need to remain future-proof. 

What’s Next for the Aerospace and Defence Industry Under Trump?

Under Trump, aerospace and defense could see significant shifts. His administration's priorities may introduce both challenges and opportunities for the sector, with policies set to influence everything from military capabilities to industry trends. The path ahead will depend on how key decisions play out in the coming years. Here are the key talking points from within the industry: 

A Military Force Stretched Too Thin

Today’s US Air Force has just 40% of the active-duty fighter squadrons it had during the Gulf War. Its bomber force has shrunk by more than half. Worse, most of its combat aircraft lack the stealth capabilities needed to survive against modern threats. 

The numbers are staggering:

• The average Air Force fighter jet is nearly 30 years old.
• Many aircraft in service first flew more than 50 years ago.
• The B-52, the backbone of the bomber fleet, is 63 years old.
• The Air Force plans to retire 1,000 aircraft over the next five years, acquiring only a fraction in return.

This is before considering the chronic shortage of spare parts, which keeps more than 500 aircraft grounded at any given time. Add in a deficit of 2,000 pilots, and the Air Force is facing a perfect storm. The new Trump administration must act swiftly to reverse this decline.

The Air Force has a strong vision for modernization, but without sufficient funding, it’s impossible to move forward at the speed required. Key programs like the F-35, B-21 bomber, Next Generation Air Dominance (NGAD) aircraft, and advanced autonomous combat systems are critical to rebuilding U.S. airpower. Similarly, the Space Force must be equipped with the capabilities needed to achieve space superiority.

Will Trump Back Traditional Contractors or New Military Tech?

Regarding Trump's defense approach, Silicon Valley military tech firms are playing a big role. Big names like Peter Thiel of Palantir and Elon Musk of SpaceX have close ties to Trump, with Musk's company even helping the U.S. military with satellite launches and internet support for Ukraine. The big question for Trump will be whether to stick with traditional defense giants or back newer, tech-driven firms like Palantir and Anduril, who believe the older players are too behind the times to build the weapons of the future.

Right now, the Pentagon still invests heavily in traditional military systems. However, with tech companies pushing for change, how Trump handles this divide could shape the defense sector for years to come.

Trump’s Focus on Space Could Mean Big Opportunities for Aerospace

Trump's return to office could significantly boost the aerospace sector, particularly in space exploration and defense. One of his early announcements was setting the U.S. on course for a mission to Mars, a move that could drive major investment in aerospace engineering. His administration is expected to lean heavily on commercial partnerships, giving private companies a bigger role in space exploration to maintain U.S. leadership. This could open up new opportunities for aerospace firms working on next-generation spacecraft, propulsion systems, and space infrastructure.

At the same time, Trump's continued focus on space security could mean more funding for defense contractors. Having previously established the U.S. Space Force, he may further expand military activities in space, increasing demand for advanced satellite systems, missile defense technologies, and other security-related aerospace developments. If his administration prioritizes a militarized approach, companies involved in space defense could see lucrative contracts, though this could also lead to heightened geopolitical tensions that might impact international collaborations.

Trump’s Tariffs Gamble

The Trump administration's proposed tariffs on materials critical to national defense, such as steel, aluminum, and copper, could significantly impact military programs by increasing costs and causing delays. While the aim is to encourage domestic production and reduce reliance on foreign suppliers, analysts warn that these tariffs could disrupt supply chains in ways similar to the COVID-era shortages, ultimately driving up prices across industries. 

Aerospace manufacturers are also concerned, as tariffs on aluminum and copper, key materials in aircraft production, could increase costs and create uncertainty over who bears the financial burden. 

The administration views tariffs as a means to strengthen national security and revitalize American Industry. However, defense experts argue that, in practice, they could create supply bottlenecks, force program restructuring, and require additional government funding to cover increased expenses. While there is potential for tariffs to boost the domestic processing of critical materials, these efforts will take time to materialize. 

What Recruitment Strategies Do Businesses Need in These Times of Change? 

As the aerospace and defence sector will undoubtedly change under the Trump administration, businesses need to rethink their approach to recruitment to ensure they attract and retain the right talent. Here are key recruitment strategies to future-proof your business: 

Address Your Skills Gap

The aerospace and defense sector requires a highly specialized workforce, but many companies struggle to find candidates with the right expertise. Strategic initiatives can help bridge this gap:

• Partner with universities: Collaborate with colleges and universities to co-develop curriculum, fund scholarships, and provide hands-on learning opportunities that align with industry needs. This ensures graduates enter the workforce with the necessary skills.
• Invest in training programmes: Offer apprenticeships, on-the-job training, and upskilling opportunities to develop talent internally. These initiatives attract early-career professionals and provide pathways for mid-career workers to transition into the industry.
• Target veterans: Many veterans possess valuable technical skills, security clearances, and highly transferable experience in aerospace and defence roles. Tailored hiring initiatives and retraining programs can help integrate them into the workforce.
• Partner with a Defense and Aerospace Recruitment Agency - A recruitment agency specializing in defense and aerospace can help streamline the hiring process, offering access to a network of qualified candidates and providing expertise in sourcing the right talent for your organization's specific needs.

Want to discover which US states are thriving in Aerospace and Defense? Explore our US Recruitment Trends - Industry Showdown to find out. 

Enhance Employer Branding

In a competitive job market, aerospace and defense companies must position themselves as attractive employers by highlighting their unique opportunities.

• Showcase impactful work: Emphasise how employees contribute to national security, space exploration, and cutting-edge technology development. Candidates are more likely to join a company when they feel their work has a meaningful impact. Social media platforms and case studies are powerful tools to showcase these contributions, allowing potential candidates to see the real-world effects of their work and how it fits into the larger mission. 
• Emphasise innovation: Position the company as a leader in technological advancement, highlighting opportunities to work on next-generation aircraft, autonomous systems, space operations, and cybersecurity.
• Promote company culture: A positive, inclusive work environment is crucial for attracting and retaining talent. Companies should highlight their commitment to diversity, work-life balance, employee well-being, and professional development.

Offer Competitive Compensation and Benefits

Aerospace and defense companies compete within their industry and against Silicon Valley and other high-tech sectors for talent. Offering strong compensation packages is essential.

• Competitive salaries: Offer salaries that meet or exceed industry standards to attract talent and show your company's appreciation for their skills. Regularly review benchmarks to ensure compensation remains competitive.
• Comprehensive benefits: Provide a strong benefits package, including health insurance, retirement plans, tuition reimbursement, paid time off, and flexible work arrangements. Including mental health support and wellness programs boosts employee satisfaction and retention.
• Performance-based incentives: Offer bonuses, stock options, and rewards linked to performance. These incentives motivate employees to exceed expectations and foster a sense of ownership and commitment to the company’s success.

Streamline the Hiring Process

Lengthy and complicated hiring processes deter candidates. Simplifying recruitment can help companies secure talent faster.

• Expedite security clearances: Collaborate with government agencies to streamline clearance processes for qualified candidates. Delays can result in talent dropping out or accepting other offers. Proactively managing this step ensures quicker onboarding and better talent retention.
• Simplify the application process: Ensure job postings are clear and concise, with an easy-to-use online application. Avoid complex forms and allow candidates to track their progress and communicate with recruiters. A streamlined process shows respect for candidates' time and encourages more applications.
• Timely communication: Keep candidates informed at every stage to maintain engagement. Regular updates, clear timelines, and transparent next steps reduce uncertainty and prevent candidates from moving on due to slow or lack of feedback.

Emphasise Career Development

Candidates seek long-term career growth. Companies that invest in employees’ professional development will have an advantage in attracting and retaining talent.

• Mentorship programs: Pairing new hires with experienced professionals accelerates their growth and integration. Mentorship develops a supportive learning environment, boosting employee engagement, retention, and skill development while offering guidance to overcome challenges.
• Training and development: Offering ongoing learning opportunities such as leadership training, technical certifications, and tuition reimbursement helps employees stay current with industry trends. This commitment to growth enhances individual skills and strengthens the company's overall talent pool.
• Clear career paths: Providing a structured career progression plan helps employees see long-term opportunities within the company. Clear milestones and promotion criteria motivate individuals, improving retention and encouraging career growth within the organisation.

The aerospace and defence industry is at a critical juncture. With the new Trump administration pushing for stronger air and space capabilities, companies must secure the workforce needed to support these priorities. 

By addressing the skills gap, enhancing employer branding, offering competitive benefits, streamlining hiring, and investing in career development, U.S. aerospace and defence firms can attract and retain the talent necessary to drive innovation and national security forward.

Final Word on Trump and the Aerospace and Defense Industry

Companies must stay ahead of shifting dynamics as the aerospace and defense industry prepares for potential changes under Trump's leadership. By focusing on effective recruitment strategies, businesses can ensure they're equipped to meet the challenges of a transforming sector with a workforce capable of driving innovation and supporting national security.

The key to success will lie in developing a talent pool that can manage both the uncertainties and opportunities of the coming years. Companies that adopt proactive recruitment approaches emphasize career growth and position themselves as attractive employers will be best placed to thrive as the industry evolves.

Purpose-driven Aerospace and Defense Recruitment

The aerospace and defense industry is undergoing significant change, and your business needs the right talent to stay ahead. At CSG, we specialize in connecting you with experts who can help shape your future success in this shifting sector.

Ready to find the talent that will drive your business forward? Get in touch with our team today.