Despite a relative slowdown in the last three to six months, the GovCon industry has seen a steady increase in consolidation and competition in recent years. Valiant Integrated Services CEO Dan Corbett expects the trend to continue.
In a new video interview with Executive Mosaic, Corbett revealed that the recent slowdown in the market can be attributed to factors like inflation, potential recession and higher interest rates. Still, he said the GovCon market will continue to grow, and competition will intensify.
“There is a race for size. When you look at the government services industry, you see these massive ‘mega services’ businesses being set up, and I do see that [continuing],” Corbett said during the interview. “There has been highly fierce competition for assets in the market.”
However, the race for size and assets does have a silver lining. Corbett said as these larger businesses streamline, smaller and mid-sized businesses can leverage what’s being shed.
“Within the consolidation of some of these ‘mega services’ firms, we’re seeing portfolio shaping in which they’re looking to shed some of the assets they’ve purchased, so we see that as an opportunity,” revealed Corbett.
To hear more of Dan Corbett’s market predictions and to learn more about Valiant’s growth strategies in today’s highly competitive industry, watch his full video here. Keep up with insights from the leaders of GovCon by subscribing to Executive Mosaic’s YouTube channel!