Defense News Publishes Grundman Opinion, “A Defense Industry For The Age Of Austerity”

21 April 2014 • 0 Comments

Writing on the opinion page of Defense News, Steve Grundman observes that “three years into an ‘age of austerity’ in Western military spending, expectations are building for a new wave of mergers and acquisitions (M&A) in the defense industry like the one that followed the Cold War.” However, argues Grundman, “the imperatives of today’s defense company stakeholders could not be more different from those of a quarter century ago.” He concludes, therefore, that “a defense industry for the age of austerity will reflect different impulses: Customers who require commercial-style innovation more than simple cost reduction; investors who see a more complex formula for value creation than simply M&A; and competitors more adept and aggressive than incumbents still indulging the mantra ‘higher, faster, farther.'”


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