Opinion: Keeping the U.S. defense and aerospace sector strong by merging Raytheon and United Technologies

Sept. 10, 2019
Existing giants will consolidate for economies of scale and cost savings to pass along to the taxpayers or redirect into research and development.

WASHINGTON – The rules of modern warfare are changing. The folks who still believe victory goes to the side that “gets there the firstest with the mostest” need to step aside in favor of the strategists who realize it’s new defense technologies, applied appropriately, that will provide the margin of victory. The Washington Times reports. Continue reading original article

The Military & Aerospace Electronics take:

10 Sept. 2019 -- This isn’t a radical idea. History is replete with examples of new technologies producing lasting strategic changes. It’s important to realize these changes will cause what economists like to call “creative disruption.” It’s true some defense sector jobs will be eliminated, but it probably is also true many more times what’s been lost will be created.

Companies will arise that haven’t been players in the defense space while existing giants will consolidate to produce economies of scale and other cost savings that can be passed along to the taxpayers or redirected into research and development.

The recently announced merger of Raytheon Corp. (famous for the Patriot missile that helped win the Gulf War) and United Technologies is one example of that which is already underway. Together the new company should provide a surplus of innovation and domestic manufacturing and design jobs.

Related: Raytheon stock dips as market has second thoughts on merger of equals with United Technologies Corp. (UTC)

Related: Raytheon to merge with United Technologies in merger of equals to form Raytheon Technologies Corp.

Related: Helping Push the Environmental Limits of Defense Systems

John Keller, chief editor
Military & Aerospace Electronics

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