Most defense company executive teams are spending a lot of sleepless nights these days. Their worry: how to create shareholder value in a market with a gloomy long-term outlook. Defense and security budgets are heading south. “Sequestration” looms large on Capitol Hill. New program starts are few and far between. Internally, most companies' cost structures are bloated from a 10-year growth cycle, and organizational complexity is rampant.
Aerospace and defense companies thrive by engineering aircraft that can cruise through turbulence and by building battlefield-hardened weapons systems. But now their biggest challenge may be how well they can weather the currency-market wind shears that have pushed the U.S. dollar into a nosedive—and position themselves for its next eventual ascent.
Spotters at this year’s AirVenture show at Whitman Field can expect to see a Mil Mi-2 Hoplite (N211PZ) in full camo livery touching down on the grass on Thursday. Be careful not to judge the 1978 Polish-built Soviet-era relic by its cover hover. This Mil is different....More