Andrew Quirk’s Post

🚀 Exciting Growth in the Aerospace and Defense Industry! 🛡️ - The Aerospace and Defense industry continues to boom after seeing a slight slowdown in 2021 and 2022. In 2023, the Department of Defense issued a record-breaking $488 billion in contract awards, an increase of 11.5% year-over-year. - Out of the $488 billion awarded in 2023, 5 leading defense contractors accounted for 32% of total award volume. However, with almost $200 billion of contracts being reported as awarded as of Q2 2024, the DOD is on track for another record-breaking year with even more opportunities for growth within the industry. - Despite a slowdown in the first half of 2024, the A&D start-up space ended 2023 on a high note with 89 deals resulting in just under $3 billion in Venture Capital funding raised, the most invested in the industry since the 2nd quarter of 2022. - Even one-quarter of significant capital investment can lead to an increase in real estate activity. Five of the start-ups who received VC investment in Q4 2023 signed six leases within a year of receiving funding, accounting for over 190,000 s.f. of demand. Four of the leases signed were in Southern California and two were in Northern Virginia. With such robust growth and investment, the future of the Aerospace and Defense industry remains promising. As the industry gains momentum, we can expect continued expansion and a surge in real estate activity. #Aerospace #Defense #GrowthOpportunities #RealEstate #JLL #Innovation

🚀 Exciting Growth in the Aerospace and Defense Industry! 🛡️ - The Aerospace and Defense industry continues to boom after seeing a slight slowdown in 2021 and 2022. In 2023, the Department of Defense issued a record-breaking $488 billion in contract awards, an increase of 11.5% year-over-year. - Out of the $488 billion awarded in 2023, 5 leading defense contractors accounted for 32% of total award volume. However, with almost $200 billion of contracts being reported as awarded as of Q2 2024, the DOD is on track for another record-breaking year with even more opportunities for growth within the industry. - Despite a slowdown in the first half of 2024, the A&D start-up space ended 2023 on a high note with 89 deals resulting in just under $3 billion in Venture Capital funding raised, the most invested in the industry since the 2nd quarter of 2022. - Even one-quarter of significant capital investment can lead to an increase in real estate activity. Five of the start-ups who received VC investment in Q4 2023 signed six leases within a year of receiving funding, accounting for over 190,000 s.f. of demand. Four of the leases signed were in Southern California and two were in Northern Virginia. With such robust growth and investment, the future of the Aerospace and Defense industry remains promising. As the industry gains momentum, we can expect continued expansion and a surge in real estate activity. #Aerospace #Defense #GrowthOpportunities #RealEstate #JLL #Innovation

🚀 Exciting Growth in the Aerospace and Defense Industry! 🛡️ - The Aerospace and Defense industry continues to boom after seeing a slight slowdown in 2021 and 2022. In 2023, the Department of Defense issued a record-breaking $488 billion in contract awards, an increase of 11.5% year-over-year. - Out of the $488 billion awarded in 2023, 5 leading defense contractors accounted for 32% of total award volume. However, with almost $200 billion of contracts being reported as awarded as of Q2 2024, the DOD is on track for another record-breaking year with even more opportunities for growth within the industry. - Despite a slowdown in the first half of 2024, the A&D start-up space ended 2023 on a high note with 89 deals resulting in just under $3 billion in Venture Capital funding raised, the most invested in the industry since the 2nd quarter of 2022. - Even one-quarter of significant capital investment can lead to an increase in real estate activity. Five of the start-ups who received VC investment in Q4 2023 signed six leases within a year of receiving funding, accounting for over 190,000 s.f. of demand. Four of the leases signed were in Southern California and two were in Northern Virginia. With such robust growth and investment, the future of the Aerospace and Defense industry remains promising. As the industry gains momentum, we can expect continued expansion and a surge in real estate activity. #Aerospace #Defense #GrowthOpportunities #RealEstate #JLL #Innovation

#SpaceAgenda2025 📊 Why Transforming the Budget Structure Would Benefit Defense Space During this era of intense global competition, the United States Department of Defense uses an out-of-date budget structure that categorizes defense acquisitions nebulously and inflexibly: as procurement or research, development, testing, and evaluation (RDT&E). Authors Robert (Sam) Wilson, Jamie Morin, and Lara Sayer delve into the benefits of the DOD transforming their budget structure and allow them to more effectively use proliferated assets and commercial services. #spacepolicy #procurement #budget

"Honeywell has agreed to buy aerospace and defense technology company CAES Systems for $1.9 billion from private equity firm Advent International, it said on Thursday, to give a boost to the manufacturing giant's aerospace technologies unit. The all-cash deal to buy CAES, which develops electronics such as antenna systems and communication networks for aerospace and defense companies, marks Honeywell's third acquisition so far this year. The latest deal comes at a time when top defense firms have seen orders surge in response to drawn out conflicts, including the Russian aggression against Ukraine and the ongoing war in Gaza. The CAES acquisition is expected to improve and expand Honeywell's defense technology solutions across land, sea, air and space." #finance #equipmentfinance #equipmentleasing #financialservices #corporatefinance #honeywell #mergersandacquisitions #defense https://lnkd.in/efFTbeBh

There has been an ongoing dialogue about fixed-price development contracts in DoD and specifically USSF's seemingly bullish take on it. Space Force appears- primarily through conference speeches and press from its Chief of Aquisition, Frank Cavelli- to be asserting fixed-price as the future of their acquisition process. Defense companies are pushing back based on the increased risk it creates for vendors. Industry advocates point to myriad examples in which cost overruns had significant negative impacts for the company due to changing customer requirements, priorities, and budget perturbations. In these instances, companies have absorbed most of the cost and pricing risk. The article below specifically mentions the example of USAF’s $4.9B fixed-price contract for the KC-46 tanker in 2011, which has led to $7B in cost overages for Boeing as a result of design and production issues. Part of industry’s discontent is based on the perceived notion that USG, and USSF in particular, is pushing for more fixed-price contracts, which industry executives suggest will create unmanageable risk. Comments from defense contractors suggest the increased risk from fixed-price contracts has already had an impact and led to companies passing on strategic defense programs. Cavelli acknowledges that the overall strategy must be nuanced. At a Feb 23 Center for Strategic and International Studies (CSIS) event, he emphasized the intent is to leverage fixed price for “smaller footprint systems using existing technology”, and that larger, innovative, next-gen builds are not the best use case for these contracts. Industry is paying attention to both what Cavelli says and how his policies are implemented within USSF. The result will have immediate and meaningful impacts on how U.S. space capabilities grow and modernize. Additionally, it will influence how industry approaches this new command and the space domain overall. #defense #departmentofdefense #space #military Craig Belanger, Joe Giandomenico, Anirudh Suneel, Ben Osterholtz, Scott Bethel, Kristin Robertson https://lnkd.in/ePjqKkAF  

Money and Might — Financing the Future of Defense   A new report from a team led by U.S. Aerospace & Defense analyst Jason Gursky looks at the state of global defense spending, which has been rising since Russia’s 2015 invasion of Crimea. Since then, new factors at play have bolstered the outlook for legacy defense contractors and let venture-backed companies begin changing the face of the industrial base ecosystem. At the same time, deficits and debt have continued growing for most Western economies, spurring questions about the sustainability and prioritization of government spending. The report, which draws on views from Citi Research economists and equity analysts, looks at the outlook for defense spending and offers insights about the spending priorities of Western allies in this evolving landscape.   https://lnkd.in/dUa77mmq   Star26 - we are an acquisition holding company in the defense technology sector. Our roll-up strategy creates economies of scale, enhancing competitiveness and profitability.   #defensetech #star26 #israel #acquisitions #defense #aerospace #DefenseTech #StrategicInvestment #Innovation 

This year, private equity has “invested nearly $4 billion in defense and aerospace.” At this current pace, 2024’s deal-making is primed to surpass last year’s total. North America makes up a majority of the investment, “currently holding 95% of deal value this year.” It’s an exciting rebound for us to see. Let’s hope these projections help us finish the year strong. #Defense #Aerospace #PrivateEquity

We're in the early innings of an "Era of Reorganization" for the Aerospace and Defense sector. Sharing this short opinion piece, co-authored with colleague Jay Carmel, published in Aviation Week that lays out a selection of drivers of consequential change, strategic issues and planning considerations. https://lnkd.in/gt3nDhxi