INDUSTRY TRENDS
Increased Demand for Cybersecurity and AI Integration
With rising cyber threats and geopolitical tensions, government and defense contractors are increasingly focused on cybersecurity and artificial intelligence (AI). The Department of Defense (DoD) is accelerating AI adoption for threat detection, intelligence analysis, and autonomous systems, while agencies emphasize zero-trust cybersecurity frameworks. Companies with strong AI and cyber capabilities are becoming prime acquisition targets as defense budgets prioritize digital transformation.
Heightened Focus on Supply Chain Resilience
The defense industry continues to grapple with supply chain disruptions caused by geopolitical shifts, material shortages, and increased regulatory scrutiny. The U.S. government is pushing for greater domestic manufacturing capabilities, especially in critical areas like semiconductors, rare earth minerals, and advanced defense components. Businesses with vertically integrated supply chains or strong reshoring strategies are becoming more attractive acquisition targets.
Sustained Growth in Defense Spending Despite Budget Pressures
Despite broader fiscal constraints, defense spending remains robust due to global instability, particularly in Eastern Europe and the Indo-Pacific. The 2024 National Defense Authorization Act (NDAA) reinforces funding for modernizing military assets, replenishing munitions stockpiles, and expanding space and missile defense programs. M&A activity in these segments is expected to remain strong as firms seek scale and technological differentiation.
Uncertaining in Trump Administration 2.0
While Government & Defense spending is not in the immediate crosshairs of the push to shrink federal spending, short-term uncertainties around priorities and shift in focus has the potential to cause delays in federal procurement activity. Long-term transforming the procurement process and streamlining acquisition policy hold great potential to shrink the time to allow contractors to meet government demands and remove cost from the process.
Surge in Space and Hypersonic Technologies Investment
The U.S. government is ramping up investments in space-based defense systems and hypersonic weapon development to maintain strategic superiority. The Space Force is prioritizing satellite defense and resiliency, while DARPA and major defense primes are advancing hypersonic glide vehicles and missile defense systems. Companies specializing in these emerging technologies are experiencing heightened interest from both strategic buyers and private equity investors.
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Mr. Calogero has deep experience in Supply Chain and Manufacturing Industries. Prior to FOCUS, he was the Vice President of Operations for McElroy Manufacturing, Inc., an OEM with revenues of $100M and 250 people. Under his leadership, he leveraged Lean Manufacturing and Advanced Manufacturing technologies to transform the operations of the company. He drove an increase of Gross Margin by 700 basis points, while improving On-Time Performance from 62% to 92%, reduced turnover by 60%, with world-class safety and quality.
As the COO of Coastal Sunbelt Produce, he was responsible for operations, supply chain management, street sales, and asset velocity for this Private Equity backed $300M, 500-person Food Manufacturing and Distribution firm, delivering a 100-basis point increase to EBITDA in the first year. He has also worked in the Aerospace sector, launching his career at Lockheed Martin and Boeing in Finance and oversaw $3B in helicopter and weapons systems contracts. He also led a consulting business in Michigan that transformed product development for Ford, General Motors, and several Tier 1 & 2 Automotive suppliers.
He also worked extensively in Management Consulting and Government Information Technology. He helped transform over 200 companies in Manufacturing, Distribution, Hospitality, Technology, Semiconductor, Life Sciences, and Hospitals/Healthcare. He founded a management consultancy, XSell Solutions, improving performance in Sales, Supply Chain, and Production. He also served as the President of Tefen USA. For this 100 person Global Management Strategy and Operations Consulting firm, he directed all activities within North America and the Far East. Customers included Schneider Electric, Massachusetts General Hospital, Baxter Healthcare, Abbott Laboratories, Applied Materials, Amgen, and Pfizer.
His career in Government IT included Senior VP of Sales and Strategy at Robbins-Gioia, a 600-person program management and business process outsourcing firm, with clients across the DOD and Federal Civilian Agencies. He also served as the Business Manager for Computer Sciences Corporation, leading systems integration programs for the Department of Interior and Department of Commerce.
With an MBA from The George Washington University and a BA from Loyola University Maryland, he is an accomplished presenter, including keynote presentations in Healthcare and National Manufacturing Week conferences, to name a few. Mr. Calogero is a Member of the Young Presidents’ Organization Gold Washington DC/Baltimore Chapter and past Chairman of the YPO DC/Baltimore Chapter.
Mr. Calogero holds FINRA Series 63 and Series 82 licenses.
