Consolidation of the defense industry is pressuring many historically successful companies to reinvent themselves. During the 1990's, mega companies evolved from large consolidations of major firms in the defense industry. This merger phenomenon was driven in part by the cuts in government spending which began late in the 1980's, making the size and scope of many companies excessive for our new national requirements.

At least two major developments resulted from this merger activity:

1. Many small to medium size government contractors have been either forced out of the market or pressed to reduce their margins to very small high-risk levels.

2. Larger government contractors are bidding on small and medium size contracts which in the past had been won by the smaller companies.

In many cases, reforms in government contracting procedures and innovative contracting instruments, (for example, "indefinite quantities- indefinite deliveries"), have favored the giant firms with deep pockets and a broad range of capabilities. Furthermore, the slashed federal budget has reduced many government bureaucracies, causing government entities to contract for services.

With these and other concerns in mind, aerospace suppliers are increasingly approaching RSR to help them refine and execute their marketing strategy. RSR's aerospace/defense projects typically focus on new business development including introducing new products to existing markets, pursuing new markets, or diversifying completely.

Businesses that RSR has studied in the past include:

> Aircraft utility products

> Avionics components and systems

> Gas turbine engine sensors

> Environmental control systems and related components

> Electronic warfare

> Airport lighting

> Antennas

> Brake control systems

> Proximity sensor systems