Defense and aerospace companies face unique challenges. They operate in isolated environments, often outside of a company network. They must correctly assess and align their development priorities with future environmental requirements. Long product development timelines magnify the risks and complexities of their work. And contract mechanisms like cost-plus arrangements incentivize keeping costs high.
Aerospace and defense companies like Mentis Sciences, Inc. develop aircraft, spacecraft, weapon systems, satellites, etc. These companies must understand their customers’ needs and provide products anticipating the operating environment years into the future. They must make decade-long technology bets that great companies in other industries would blanch at.
Some academics and policymakers, particularly those in political science, have argued that deterrence remains a viable tool in the United States’ arsenal to combat terrorist threats. However, those who argue that deterrence maintains utility fail to consider the policies required to effectively deter elements of a terrorist network – policies that may directly conflict with America’s core values. This is the most significant roadblock to deploying deterrence against terrorist networks.
Defending the Homeland
The military’s need for cutting-edge technology inspires innovation within the companies that make it. This creates a competitive environment for contracts with the DOD.
These technologies take a long time to develop, from the concept’s invention to the final delivery of a finished product. It is not uncommon for 10-15 years to elapse between the initial design phase and fielding of a new system. These long timelines magnify the risk and complexity of the A&D industry.
Defense and aerospace companies are essential to NATO‘s ability to respond to crises in Europe, the Middle East, and Asia. In addition to military equipment, companies in this sector produce rockets and satellites that deliver vital intelligence and communications, monitor the Earth from space, and support military operations.
With the consumer price index at an all-time high, companies in this sector face inflation challenges that affect their ability to support national security. Understanding risk exposure and a strong contract portfolio is crucial to navigating these challenging conditions.
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