Defense and aerospace providers face enormous challenges in today’s global economic and geopolitical environment. Rapid and disruptive changes are compounding the challenges associated with reduced governmental budgets and spending, continuous demand for increased competition, diversity of providers, downsizing, unresponsive production capabilities and flexibility, and industrial base consolidations. The industry is already burdened with an antiquated acquisition system, ever-increasing costs in combination with a premium on lowest bid and lowest price, relentless demand for quality and long-term sustainability, less time and resources to support RDT&E, intense public scrutiny, and congressional and regulatory oversight.
On top of the business challenges there are the geostrategic challenges. Who is the peer competitor? What is their primary means of competition? How does the nation forecast, anticipate and stay ahead of threats? Defense industry leaders need to be able to address these questions and the nation’s need for predominance in the global advanced technology sector. How does the defense industry deal with the rise of foreign competition? How do industry leaders deal with a U.S. defense industry that is increasingly vulnerable in strategically vital markets where the U.S. enjoyed nearly singular leadership in the past?
To be successful companies must have the foresight to stay ahead and insight to stay relevant to today’s requirements. Companies must be diversified and yet expert in what they claim to provide. Executives must be current on government and industry trends and practices, especially in public-private partnerships. Companies need to identify, form and maintain strong and reliable strategic business alliances. Leadership must thoroughly understand technology needs and trends and lead in innovation, understanding the risk and potential of demand for new technologies that do not have existing markets yet can be developed and thrive first in defense spending. Executives and Boards need to understand the dynamic of reconfiguring the defense and aerospace industry and of the move toward new public-private partnerships. With our executive search know-how and leadership consulting expertise we will help your organization grow.