The defense industrial base is undergoing a major transformation. Domestic political and budget uncertainty, geopolitical instability and evolving global threats have all become constants. The defense budget is under pressure to remain at approximately the $500 billion level, with modest increases moving forward. Defense spending now stands at the lowest percentage of national GDP in modern history. With this as a backdrop, defense spending is in danger of being crowded out by other pressing domestic needs in the United States, with important social programs, an aging population, and the servicing of a growing national debt all front and center.
However, these changes and their resulting challenges create great opportunity for organizations that add the greatest affordable innovation within their solutions. New defense electronics business models that efficiently leverage the best commercial technologies and business practices from the American industrial base are poised to thrive in this environment, with solutions that are more capable, interoperable and affordable.