Small Projects Get More Funding from the PentagonNovember 25, 2009

 

With the Pentagon budget likely to shrink over the next few years, small military contractors are positioning themselves for opportunities. Jon Kutler, founder and chairman of Admiralty Partners in Los Angeles, told The New York Times that military spending is shifting from "vast programs for aircraft or mammoth undertakings that take 10 years to complete" to "smaller companies in fields like cybersecurity."

Loren Thompson, a defense analyst at the Lexington Institute, a think-tank based in Arlington, Va., predicts "the Pentagon will be the biggest consumer of information systems and software in the world for the foreseeable future."

The Times article lists several small companies to watch, as follows:

  • Trident Space and Defense, Torrance, Calif., owned by Admiralty Partners, which makes satellite components for surveillance, providing ground systems and tracking services worldwide.
  • AmSafe Aviation in Phoenix, which makes belts and harnesses for the airline industry.
  • Pankl Aerospace Systems of Cerritos, CA., which supplies helicopter drive shafts and related equipment.
  • Kratos Defense and Security Solutions in San Diego, which makes products to secure computer systems from hackers and spies.
  • Com Dev International, based in Cambridge, Ontario, created a U.S. division to exploit the American military and civilian satellite sectors.

  • Thompson told the Times that "second-tier defense contractors focused in information and intelligence applications will probably do well in the emerging military market."