What We’re Reading

Content Summary

In this September edition of our Aerospace, Defense & Government Services industry update, we review recent articles and developments impacting our target end markets. We also provide perspective on recent trends within the public markets as well as the M&A markets.

The Future Of MRO Is Human-Machine Teaming

“The buzzwords Big Data, Machine Learning, Natural Language Processing, Analytics, Cognitive Computing and many others are tumbling from vendors’ brochures into shop maintenance procedures. Each Artificial Intelligence (AI) technique has to be considered one its own merits, of course. But it is also time to take a more holistic look at what is happening to aircraft maintenance in the age of AI.”

MRO Network

Opinion: A&D Companies Focus On Skill-Building

“The state of the commercial aerospace and defense (A&D) industry is strong, transport aircraft orders are at record levels, and defense spending is on the upswing for the first time in years. But there’s a hitch: Industry growth, especially in these times of low unemployment, exacerbates the workforce challenges A&D executives have been grappling with for several years. In our latest CEO survey, 75% of respondents said they are concerned with the availability of key skills.”

Aviation Week

Modernization or Death: Heed History’s Lessons on the F-35

“If you go to war, you must be equipped to win. That was the message veteran pilots from the Vietnam War delivered to me when I entered the U.S. Air Force in 1974. The same holds true today. That is why I am concerned when doubts are raised about the future of the F-35 fighter program. Modernizing America’s aerial arsenal with advanced capabilities is not an optional activity. Failing to do so will undermine the U.S. military’s effectiveness around the globe and put aircrews at undue risk.”

Defense News

How AI Will Change the Way Government Works

“For many people, artificial intelligence conjures up images of sci-fi movies and the future. They see it as a threat to their jobs and sometimes even their safety, but AI represents the biggest leap forward in terms of work productivity since the personal computer – and few other industries can benefit from AI as much as government. With AI, we can change the way government works and help employees do their job better.”

FCW

Perspective on Public Marketsa,b,1

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Recent M&A Transactions2

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a.Current stock prices in USD as of 9/30/18

b.Aircraft OEMs: BA, BBD.B, EADS, ERJ

Aerospace Supply Chain & Aftermarket Support: AIR, ARNC, ATRO, B, BBA, DCO, ESL, HEI, HRX, HXL, KAMN, MAL, MGGT, MOG.A, ROLL, SAF, SNR, SPR, TDG, TGI, WAIR, WWD

Diversified Industrial: AME, CR, CW, ETN, GE, HON, PH, RR, TXT, UTX

Defense Prime Contractors: BA, BAE, EADS, GD, HO, HII, LMT, NOC, RTN

Defense Technologies: AVAV, CHG, CMTL, COB, CUB, ESLT, FLIR, HRS, KTOS, LLL, MRCY, TDY, ULE

Government Services: BAH, CACI, EGL, KEYW, LDOS, MANT, SAIC, VEC

Diversified Services: ACM, BAB, FLR, GIB, ICFI, JEC, KBR, SRP

1.FactSet

2.Mergermarket

 

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