U.S. Defense Industry Adjusts to New Fiscal Environment

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The United States has long sustained levels of defense spending that dwarf those of other nations, especially over the past decade. This has allowed the Defense Department and the military services to purchase vast amounts of weapons, vehicles and other gear—as well as services—from private defense firms. But in an era when the U.S. is scaling back its offshore military footprint and struggling to get its fiscal house in order, the amount of money available to sustain the defense industry is in decline. Defense is also subject to approximately half of the current sequestration cuts, which amount to approximately $50 […]

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