Global Security Challenge

Traditional defense giant Raytheon focuses on security technologies

Major American defense contractor Raytheon is increasing its focus on civil security market.  Better known for its state-of-the-art military systems such as the surface-to-air Patriot missile systems, Raytheon has been applying its military technology to civilian applications such as border control and radiation monitors.

Raytheon's move into civil security, both within and without the United States, is due in part to the unpredictability of the growth of the United States defense budget over the next few years.  By contrast, the global civil security market continues to grow rapidly, with numerous large scale opportunities continuing to emerge.  The border control upgrades being undertaken by Romania and Bulgaria for their entry into the Schengen passport-free travel zone, as well as the currently being assembled Saudi Arabia border security force are a few notable examples.

However, the move from defense contractor to civil security was not entirely smooth-sailing, and required significant adjustments.  Tom Culligan, president of Raytheon International, stated in an interview with MarketWatch that:

"It's very challenging to learn to deal with civil agencies. They aren't structured in the same way. Most military organizations are focused on a very clear goal: to protect the country, and so they have very firm processes. When you go to civil products you don't have nearly the same situation."

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