The scramble within the defense industry
Friday, July 24, 2009 at 12:34AM MARKETPLACE: "Northrop Gains Ground as Pentagon Shifts Priorities," by August Cole, Wall Street Journal, 16 July 2009.
MARKETPLACE: "Defense Contractors Target Big Jump in India's Military Spending," by Sonya Misquitta, Wall Street Journal, 17 July 2009.
A description of how Northrup Grumman has positioned itself well to survive and thrive in Gates' realignment.
The key:
A decade ago, major defense contractors were buying and selling operations to ride out the post-Cold War downturn in spending. But Northrup repositioned itself "from being a military-airplane company to being a company focused more on electronics, information and intelligence," Mr. [Ron] Shugar said.
Shugar is the much-respected CEO.
That's how you weather big cuts in missile-defense systems.
Another way to thrive in the transition? Shift to rising New Core militaries--like India. The hold-up there is that India restricts FDI into its defense sector.
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