Defense Contractors Look for New MarketsOctober 17, 2008

 

Governments around the world, including the United States, are rethinking their defense budgets as the global economy skids off course. This has worried defense contractors looking for new ways to generate business as their traditional markets shrink. Many are launching services that are offshoots of their core military expertise, according to a report in the Washington Post.

Here are some examples:

  • Lockheed Martin, based in Bethesda, Md., is trying to expand into information technology services. The company now has contracts with several U.S. agencies (Justice Department, Department of Homeland Security, Securities and Exchange Commission, and National Institutes of Health) to help with managing data and records.

  • Raytheon of Waltham, Mass., is offering training and training support to the U.S. Army and the Federal Aviation Administration's air traffic controllers. It has also made several acquisitions to build up its cyber-security expertise.

How the IBMs, Oracles and Network Associates of the world will react to this encroachment into their business arena remains to be see.

QUESTION: Are you looking to tap into markets that are only related to your core expertise? What criteria are you using to decide which markets to enter? Send us an e-mail.