Defense Update Q4 2020

Defense Industry Stable

Drivers

  • Defense budgets and funding available for defense contractors remained stable as military programs continue to be critical to national defense.
  • While the COVID pandemic affected government defense contractors, normalcy and growth are anticipated for this sector.
  • Larger defense contractors will increasingly reach out to smaller businesses for access to set aside contracts due in part to increased emphasis on set-aside categories such as women-owned small businesses.

Drawbacks

  • With in-person networking limited, small-and-mid-sized defense contractors looked for other ways to connect with prime contractors.
  • Adoption of Cybersecurity Maturity Model Certification (CMMC) has been slow.