Grundman Cited In Aviation Week, “Top-Performing Companies Study See Rocky Horizon”
“For months, the Defense Department has been publicly exhorting U.S. companies to boost their investments in certain technologies that are critical to national defense and that also offer the greatest potential for future revenue growth. For its part, the Pentagon has allowed its investment in research, development, test and evaluation to shrink by about 28% since its peak in 2009. While no aerospace/defense company seems to have a firm grasp of what constitutes the right amount of IR&D for future generations of technology, the current unfavorable comparison with European companies could have implications for competitiveness in global markets in years to come. ‘Defense contractors have been successful by focusing on the balance sheet and low-risk strategies at the expense of growth,’ notes Steven Grundman, a member of the TPC advisory team and George Lund Fellow at the Atlantic Council, a Washington-based organization. ‘My question is whether they can ever be growth companies again without alienating their investors?'”
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