Specialist
Former VP at Northrop Grumman Corp
Agenda
- Growth outlook for top US defence prime contractors including industry trends
- Next-gen technology and key platforms on the horizon
- M&A outlook and consolidation opportunities
- 2021 outlook and US defence budget, including headwinds and tailwinds
Questions
1.
Could you give an overview of the US defence market and any key secular trends affecting it?
2.
What were your expectations for the defence market heading into 2020? How have they been altered, if at all, by the volatile macro-environment?
3.
Could you break down the competitive landscape? What are your thoughts on the operating environment for the larger players? Who would you say is strongest by end market or segment?
4.
Who would you classify as the likely winners and losers in the market? Who do you think is best-positioned to succeed across air platforms and missile defence systems in 2021?
5.
Could you comment on the modernisation progress? Where do you think the modernisation opportunities are for players?
6.
How do you think about the shift to a software focus from a hardware focus? Which technologies could provide the most growth? How do you think the capabilities of the traditional defence primes – who have perhaps had a greater mechanical and equipment-based focus – are set up to take advantage of the software shift? What could they concentrate on?
7.
How easily do you think the primes and contractors will be able to adapt to the new technologies? How might these players address the need for faster technological adoption? Where would you say are the largest risks or potential hold-ups, drawing on your experience of working on the IBCS [Integrated Air Missile Defence Battle Command System]?
8.
What is your outlook for nuclear modernisation in the US? On what timeline might those efforts come to fruition?
9.
Could you elaborate on the US Air Force’s ABMS [Advanced Battle Management System]? It’s been a big focus within integrating different branches’ capabilities and using IoT, but it’s had a delayed approach. How do you think AMBS will evolve? What could be the challenges around its integration, especially with the top primes?
10.
How should we think about the role of cyber defence and who is best positioned to succeed there? Northrop recently divested its IT missile and support services business in order to focus on growth and offsetting debts. What do you think that signals about Northrop’s focus and positioning within cyber defence?
11.
Which segments do you think will garner the most interest from the Biden administration and the DoD [Department of Defense], understanding that the Georgia Senate runoffs of January 2021 may change the outlook?
12.
There’s been speculation about the US defence budget contracting by 3-5%. How do you think defence budget allocations will change longer-term, perhaps over the next 5-10 years?
13.
How do you think UAVs [unmanned aerial vehicles] will change the ISR [intelligence, surveillance and reconnaissance] landscape? There’s been a lot of activity around these offerings in the defence market.
14.
What major questions do you think we should ask about the defence market as we head into 2021?
15.
What activity should we monitor around the primes?
16.
Is there anything we’re yet to touch on around the US defence market?
