The Merge
E22 – The legend that reshaped the 1990s military tech industry
Episode guests
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Quick takeaways
- The Last Supper event marked a significant transformation for the defense industry, with companies needing to consolidate or risk going out of business.
- Consolidation in the defense industry was driven by shrinking budgets and the need for cost-efficiency, resulting in a more streamlined industry.
Deep dives
Last Supper: A pivotal moment for the defense industry
In the podcast episode, Norm Augustine recounts a significant event in the defense industry known as the 'Last Supper'. Less Aspen, the Secretary of Defense at the time, invited a group of CEOs from defense companies to dinner at the Pentagon. During the dinner, Bill Perry, the Deputy Secretary of Defense, presented a chart highlighting the number of suppliers for various defense equipment. It became clear that with budget cuts and the need for cost-efficiency, the industry could not sustain a large number of suppliers. Companies would need to consolidate, merge, or risk going out of business. This marked a significant transformation for the defense industry, as multiple companies went through mergers and acquisitions, and the industry saw a substantial decline in the number of employees and companies. The Last Supper became symbolic of the challenges and changes faced by the defense industry during that time.
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