OVER AFGHANISTANTwo U.S. Navy F/A-18 Super Hornets of Strike Fighter Squadron 31 fly a combat patrol over Afghanistan, Dec. 15, 2008. U.S. Air Force photo by Staff Sgt. Aaron Allmon
U.S. Defense Industry Girding For Predicted Slump -- Reuters
(Reuters) - After years of predictions of a downturn that never materialized, U.S. defense companies are now bracing in earnest for leaner times, lower profit margins and tougher negotiations about government contracts.
Defense Secretary Robert Gates has launched a major efficiency drive to trim $100 billion out of the Pentagon's bloated overhead accounts from 2012 to 2016 to help avert cuts to modernization programs or funding for troops.
The Pentagon insists it expects to get growth of 1 percent after inflation in its overall budget in the fiscal 2012 budget request, despite cuts expected in other government accounts.
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