logo
Identify & Quantify
Macro-Energy-ESG Risk

Client Case Study-Consultancy

Manchester Economic Forecasting

green iguana

Client Profile - SME Consultancy

Management Consultancy with Multinational Clients
DAS are an independent management consultancy specialising in strategy, change, programme management, complex systems engineering, data analytics and asset optimisation. They specialise in bridging the gap between strategy and operations, creating effective solutions to uniquely complex issues faced by our clients worldwide.
DAS offer six complementary capabilities to help our client solve their most critical strategic and operational challenges:
  • Strategy/Policy
  • Business Transformation/Change
  • Project, Programme, Portfolio Management
  • Business Intelligence & Data Analytics
  • Asset Optimisation
  • Cyber Security
DAS conduct regular analysis & forecasts of national Defence Spending procurement programmes using a bottom-up "micro" approach. But to cross-check this domain-level methodology and ensure the analysis is coherent, DAS commissioned MEF to provide national Defence Spending projections using a “top-down” macro/global scenario approach - this also enables sensitivity analysis to be conducted ie exploring & quantifying shocks from official macroeconomic projections that impact Global/UK Defence Spending.
green iguana

Client Needs-Bespoke Model/Scenarios

Why DAS use MEF services - DEFMOD bespoke model

Following initial consultation & research, MEF constructed a specialist forecast/scenario model of Global Defence Spending DEFMOD powered by macroeconomic/other outputs from MEF's mGEM model. Global/national scenario analysis (ie imposing "shocks") can then be conducted on mGEM with outputs fed into DEFMOD to derive domain-level, fully-consistent risk analysis of national Defence Spending. The likely range of uncertainty in this key metric for DAS can then be identified & quantified for their own consultancy offer to clients. DEFMOD sensitivity analysis - crucial for DAS clients' strategic planning - is thus "globally-consistent" and thus more robust.

This global model of Defence Spending in all major Defence nations (eg US, China, Russia, France, Germany, Turkey etc..) was assembled by MEF economists who have built/maintained the MEF suite of (structural) economic models. This latter knowledge allows them to propose the best structure for client-owned satelitte models - that focus on the client's core domain area (eg for DAS, National Defence procurement) - and the particular mGEM driver variables that will power such recursive client satellite models. MEF sourced required data and then estimated a (structural) model of National Defence Spending DEFMOD typically driven by national factors (fiscal capacity, demographic/social spending) and geopolitical factors (Defence Spending by non-friendly nations). DEFMOD covers all the major Defence Spending nations in order to ensure that geo-political drivers are fully-specified; in essence, it captures the dynamics of any global arms race to ensure fully-consistent Defence Spending scenarios. Once operational, forecast scenario analysis can then be run on DEFMOD in a fully-coherent way given (global) macro drivers from mGEM scenario exercises.

Once deployed, DAS commission MEF to “stress-test” official (ie OBR, OECD, IMF) Budget projections with plausible global macro scenarios to capture & quantify domain-level uncertainty around central projections; these are then fed-through to DEFMOD to quantify related uncertainties in possible Defence Spending outturns to 2040. DAS typically conduct such mGEM-DEFMOD scenario update exercises with MEF after each major fiscal event in the UK; they can then pre-empt any potential deviations from the official baseline forecast and its ramifications for Global/UK Defence Spending to 2040.
green iguana

Client Feedback

On MEF services & how DEFMOD scenarios are used - DAS
"..as a specialist consultancy we don’t run/maintain an in-house global macro global model but we do need to incorporate Global macro, [energy & geo-political] risk quantification in our own consultancy for clients. Many of these are large, globally-trading, multinational firms who are exposed to global/national risk at a fundamental level. MEF provides an agile & cost-effective way to incorporate such dimension of risk analysis (and mitigation) into our overall consultancy offer"


If you would like to initiate an informal chat about how MEF's modelling and/or scenario services may augment your risk analysis, please email us at: bespoke@mef-uk.com