Tuesday, October 2, 2012

Bleak Times Predicted For The US Defense Industry

US Defense Biz Outlook Grim, Foreign Sales Won't Save It: Deloitte -- Aol Defense

Even if Congress somehow averts sequestration, the defense industry is headed for layoffs and, at best, anemic growth, and the much-vaunted surge in foreign military sales won't turn that around.

If the automatic cuts known as sequestration do take effect as currently scheduled in January, the impact would be "a devastating blow."

That's the bleak verdict from Tom Captain, head of the aerospace and defense practice at Deloitte LLP, who previewed the consulting firm's mid-year overview of the industry in a conversation this morning with AOL Defense. (We'll update this story with a link to the report when it's released tomorrow).

Read more ....

My Comment: Their biggest customer .... the U.S. Defense Department .... is cutting back, and cutting deep. The money is no longer there, and with trillion dollar deficits that need to be brought down .... new weapon systems and maintaining present ones are becoming less important to the U.S. public as the debt crisis grows and social cutbacks increase.

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