Greg Hayes, CEO of Raytheon Technologies, said the company has positioned its product portfolio to target the 2018 National Defense Strategy’s priorities as it anticipates a flat defense budget in the coming fiscal year, the Washington Business Journal reported Thursday.
“I don’t think the Biden administration will be increasing defense spending, nor do I think they will be decreasing defense spending because the threat from China is real, and we have to maintain peer capability with the Chinese. That also means we are going to have to invest in new technologies to meet the Chinese and their technological advances, and we are going to have to sacrifice some programs,” Hayes said Wednesday during a virtual event of The Economic Club of Washington, D.C.
He said the defense industry should reassess how procurement works and start shifting investments toward the deployment of next-generation capabilities.
Hayes also responded to a question about mergers and acquisitions in the defense market.
“I think we probably won’t see more consolidation,” he said. “There is robust competition, and again, it’s competition because the dollars are limited. We know what the defense budget is and we are all going after that, trying to make sure that we get an opportunity to provide that next generation solution.”