A new report from the Defense Department signals a warning for the major defense contractors not to expect an easy time with merger and acquisition activity under the Biden administration.
The report, “State of Competition within the Defense Industrial Base,” comes out of a July executive order from President Joe Biden requiring a look across all of the American industry at the state of competition. In noting that the number of aerospace and defense primes has shrunk from 51 to 5 since the 1990s, the report concludes that “promoting competition and ensuring it is fair and open for future programs is a critical Department priority.”
Overall, the report breaks down into five main topic areas:
That last section breaks down into five key areas that department leadership is concerned about: casting and forgings, missiles and munitions, energy storage and batteries, strategic and critical materials, and microelectronics.
The Defense Industrial Base provides products and services that allow for the sustainment and deployment of military operations. The Defense Industrial Base consists of research, manufacturing, advancements and improvements in various subsystems and components within an industrial complex to meet the needs of the U.S. military and improve its efficiency. There are more than 100,0000 companies in the defense industry, and these companies perform under the contract of the Department of Defense and provide materials and services to the government.
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