Contractors Must Diversify to Address Federal Budget Blues

Executives at even the most bullish government contractors have been forced to reset growth expectations.

They have explained the dire federal budget situation to shareholders, private equity investors and financial analysts. They have negotiated with commercial bankers and other lenders to shore up their cash. And they’ve met with anxious employees to calm their staff’s nerves.

While these are uncomfortable discussions, let’s not feel too sorry for government integrators, technology providers, defense contractors and consulting firms. They’re far from snakebit.

That’s because the customers they serve – federal and state/local government agencies – will always have need and dollars to spend. There will be cycles and periods of diminished budgets, yet the market is constant.

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