Non unique- defense industry has been consolidating for years and continues to do so

[Jared, Jared Jared Serbu is deputy editor of Federal News Network and reports on the Defense Department’s contracting, legislative, workforce and IT issues.; February 10, 2023; “Defense Industrial Base loses thousands more firms, mainly because DoD is a tough customer”; Federal News Network; https://federalnewsnetwork.com/defense-industry/2023/02/defense-industrial-base-loses-thousands-more-firms-mainly-because-dod-is-a-tough-customer/

The latest edition of an annual report by the National Defense Industrial Association suggests that even though thousands of new companies are winning their first-ever DoD contracts each year, those new entrants aren’t nearly enough to offset the number of firms who are leaving the Defense market. The latest figures NDIA compiled show the Defense market suffered a net loss of 3,300 companies in fiscal year 2021, the latest statistics available. Although more than 8,300 firms sold goods and services to DoD customers for the first time in 2021, even more left the Defense space. The industrial base has been declining every year since 2017, from 76,700 companies in that year to just under 60,000 in 2021. David Norquist, NDIA’s president, said the latest declines don’t appear to be driven by industry consolidation, but by companies simply deciding not to do business with DoD.