Just a few short weeks ago, Americans everywhere remembered a great tragedy on the ten-year anniversary of the September 11th terrorist attacks on the United States.
It’s fair to say that tragic day, when extremists piloted hijacked planes into the World Trade Center in Manhattan, the Pentagon, and a field in Pennsylvania, has had a lasting and significant impact on our country and our world. The attacks led to wars in Iraq and Afghanistan, increased security during events and in airports, and a wide range of other responses that have fundamentally changed the way Americans live in their daily lives.
A decade after the attacks, Americans can look back at the tragedy that occurred on 9/11 and see the impact the attacks have had on many aspects of our country. This is equally true of the National Capital Region and its economy.
ACG National Capital sponsor, the McLean Group, an investment bank that provides M&A, corporate finance, market intelligence and business valuation to middle market businesses, recently released a report that looks at the decade following 9/11 and analyzes the impact and influence that the terror attacks and subsequent War on Terror have had on the region and its economy.
According to the report, the suddenness of 9/11 and America’s response created opportunity and challenges for the defense and government contracting companies headquartered in the National Capital region. Many companies that had seen budgets and programs slashed as a result of defense spending cuts during the previous decade found the government turning to them for a wide range of solutions and technologies needed to fight the War on Terror.
The large defense contractors were tasked with providing a wide range of communications, intelligence collection, data analytics, unmanned systems, and counter-IED technologies. The result of this demand was rapid growth of the defense industry and significant M&A activity as large defense contractors looked to acquire smaller companies with the knowledge and technologies needed to address the military’s largest pain points.
However, following the beginning of the recession in 2008, the defense sector has been on the decline. As the wars in Iraq and Afghanistan wind down and the country looks to slash costs in light of ever increasing budget deficits, the defense industry has suffered.
The 9/11 attacks on our country were tragedies unlike any our country has ever seen. The impact of the attacks has been wide-reaching and have influenced many things in our country and our way of life, including the National Capital region, its economy and corporate growth. To read a copy of the McLean Group’s report, visit http://www.mcleanllc.com/pdf/TheDecade.pdf.