Mercury Systems FY19 Investor Day Presentation
Six major trends shaping the defense industry
CEE)
$
A
© 2018 Mercury Systems, Inc.
Political Dysfunction:
Budget Control Act and repeated Continuing Resolutions disrupting DoD
budget process and spending
Increased Defense Spending Cycle:
Rising interest rates, healthcare and social spending remain issues;
MilPer expense growth, aging military platforms' O&M costs rising
Defense Procurement Reform:
Firm-fixed-price contracts changing economics and industry competitive
dynamics despite increased defense spending
Innovation Challenges:
Increasing headcount but recruitment challenges and aging workforce;
Relatively low IR&D requires focused investment and greater outsourcing
DoD needs more domestically-produced technology
Leverage high-tech commercial investment and innovation;
Address supply chain globalization and need for trust and assurance
Challenging Global Security Environment:
Resurgent Russia, Chinese militarization and power projection, ISIS,
North Korean threat, Middle East instability
9View entire presentation