At a recent IMTS 2026 session, Mike Watkins and Dave Capkovitz of EBITDA Growth Systems explained how machine shops and precision manufacturers can break into defense, space, and aerospace work. They pointed out that PwC put the sector's 2025 revenue above the trillion-dollar mark. Governments worldwide are spending heavily on military readiness and on rebuilding depleted weapons stockpiles, which can mean profitable contracts lasting for years.
The presenters stressed that the sector is broader than many people assume. It covers satellites, launch providers, space equipment and habitats, passenger aviation, military and general aircraft, drones and other unmanned systems, missiles, and ammunition. Watkins argued that manufacturing's role in these areas often goes unrecognized. Capkovitz described the current engineering advancements in these industries as remarkable, and Watkins called the moment an exceptional opening for precision machining businesses.
Winning this work takes deliberate preparation, though. Shops need a sales and marketing plan built around what sets them apart, since many competitors are chasing the same customers. Visibility grows slowly, through videos, a strong website, and a presence at industry events. Watkins said there are no shortcuts. Companies must lay the groundwork first by determining the biggest players in each market and then deciding which customers to target.
Finally, the speakers urged shops to know their own numbers. Before bidding, a company should understand its shop rate and every cost behind it, including labor, machine time, and overhead. This level of preparedness will stand out to potential clients and gives manufacturers an edge over others bidding for the same business contracts.