Defense & Aerospace Report DEFAERO Daily Pod [Nov 10, 25] Week in Review & Byron Callan’s Week Ahead
Nov 10, 2025
Byron Callan, an expert in defense finance from Capital Alpha Partners, and Chris Servello, a retired U.S. Navy public affairs officer, dive into the impact of the U.S. government shutdown on contractors. They analyze Secretary Hegseth's procurement reforms and discuss what needs to happen for success. The duo covers Russia's evolving strategies in Ukraine, the implications for U.S. naval posture, and the potential effects of ongoing conflicts on defense reforms. They also highlight positive trends in defense spending amid broader industry challenges.
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Shutdown Relief Is Conditional
- The Senate moving to end the shutdown eases immediate contractor risk but final action still depends on the House.
- Byron Callan warns a CR past Thanksgiving or into January would materially harm contractors and cash positions.
Shutdowns Damage Morale And Planning
- Political framing matters: supporters will blame opposing parties while opponents blame the White House or Congress.
- Chris Servello says shutdowns mainly waste time and damage morale and planning far beyond lost days.
Talent Loses Patience With Uncertainty
- Furloughs and pay uncertainty push talented workers toward private-sector options.
- Byron Callan highlights the long-term hiring and retention cost of repeated shutdowns.