For many owners of lower-middle-market aerospace and defense manufacturing companies, retirement planning is not just a personal decision; it is also a market-timing decision. In 2026, that timing question has become especially important.
The U.S. aerospace and defense sector remains one of the country’s largest and most strategically important industrial bases, with the Aerospace Industries Association reporting $995 billion in total U.S. industry business activity in 2024, including $556 billion in direct output. That scale alone helps explain why quality aerospace and defense manufacturers continue to attract attention from strategic buyers, private equity groups, and experienced manufacturing executives seeking acquisition opportunities.
Looking ahead, the broader U.S. aerospace market is also expected to continue expanding over the next decade. Long-term sector projections remain strong:
- Overall Aerospace Market: Expected to grow from USD 402.75 billion in 2025 to over USD 846 billion by 2035, at a CAGR of 7.71%.
- Aerospace & Defense Materials: Projected to grow at a CAGR of 5.55% (reaching USD 49.07 billion by 2035), or 6.7% in other estimates.
- Aerospace & Defense Propulsion Systems: Expected to expand at a CAGR of 6.3%.
- Commercial MRO: The aftermarket maintenance, repair, and overhaul market is forecasted to grow at a 3.2% CAGR.
Recent events in Washington may add even more momentum to that outlook. On March 6, 2026, President Trump met with executives from major defense contractors, including Lockheed Martin, RTX, BAE Systems, Boeing, Honeywell Aerospace, L3Harris, and Northrop Grumman, to address the need to increase weapons production after recent military operations reduced stockpiles. Reuters reported that the administration is pushing for faster output, that production of certain precision-guided munitions is expected to increase sharply, and that a supplemental budget request of around $50 billion is under discussion to help replenish supplies.
For domestic aerospace and defense manufacturers, especially those with specialized machining, fabrication, electronics, assemblies, or mission-critical component capabilities, this type of replenishment cycle can strengthen demand across the supply chain.
At Accelerated Manufacturing Brokers, Inc., we focus exclusively on manufacturing, and that specialization matters. Aerospace and defense manufacturing companies are not commodity businesses. Certifications, approvals, long-term customer relationships, complexity of parts, proprietary know-how, quality systems, and the consequences of supplier replacement all affect value.
In a recent publication, we note that one client received four wildly different valuations before coming to our firm, and our valuation was 25% higher than the next highest because we understood the difficulty of what the company produced. Additionally, we considered more than 175 data points, including certifications, culture, and LTAs, to establish the company’s true value. We obtained several offers for this client, the highest of which was 35% over our list price. That is the difference between a generalist and a firm that knows how to position a specialized manufacturer properly.
We also understand that many owners are not simply looking for “a buyer.” They want the right buyer. Confidentiality matters. Legacy matters. Employees matter. Customers matter. Our process is designed accordingly. We do not advertise who or where our clients are, and even after an NDA is signed, we continue to shield the seller’s identity until a buyer has been vetted both financially and professionally. We ask for financial information, investment or bank statements, and resumes before disclosing who the business is. That helps protect owners from competitors, tire-kickers, and underqualified parties while keeping disruption to the business at a minimum.
Just as important, we know how to reach buyers with deep manufacturing experience. Your company should not be handed to someone who needs years to understand tolerances, production flow, AS9100-style discipline, customer qualification requirements, or the consequences of a missed delivery. We routinely work to attract strategic buyers from larger manufacturing organizations, and we believe that broad but disciplined reach is one reason our clients often receive stronger offers.
Specialization matters because it means we are already speaking with the types of buyers who understand aerospace and defense manufacturing, and we understand the value drivers that can command premium pricing: difficult-to-replace capabilities, approved supplier status, recurring defense or aerospace programs, engineered complexity, documentation discipline, quality certifications, specialized equipment, and proven management depth.
For owners approaching retirement, the larger point is this: a favorable market does not automatically produce a premium result. Premium outcomes usually come from careful preparation, credible positioning, disciplined confidentiality, and access to buyers who truly understand manufacturing. In aerospace and defense, that often means working with an advisor who can articulate why your certifications, processes, tolerances, customer approvals, engineering know-how, and production history make your business more valuable than a simple multiple might imply.
Retirement planning is deeply personal, but it is also strategic. With the U.S. aerospace and defense sector operating at a substantial scale, long-term growth still expected, and Washington now focused on replenishment and defense production capacity, 2026 may be an important window for aerospace and defense manufacturers to evaluate their options. Owners do not need to be “ready to sell tomorrow” to begin the conversation. But they may benefit from understanding how the current market would view their company today. Contact us today to learn more, or request a call HERE.