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