Exciting Times For The Defense Sector

According to an article published by defensenews.com, we can expect to see a "steady" level of M&A activity in the defense sector in the coming years. This prediction comes from David Melcher, head of Aerospace Industries Association – the largest US aviation trade group. According to Melcher, M&A activity has begun to pick up in recent years, due to reduced uncertainty surrounding government budgets in the defense marketplace. Companies are now consolidating at an increased rate as a way to find new growth paths.

In addition to M&A, Melcher predicts that the industry will witness more "spinouts" in the coming years. As support for this prediction, the article notes that defense companies have been spinning off their technical services businesses in recent years.