Cross-Country Evidence on the Impact of Shifting Economic and Strategic Landscapes on the Global Defense Industrial Base
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Authors
Hensel, Nayantara
Subjects
Defense Industrial Base
US and global defense industrial base, shifting economic and strategic landscape, defense contractors, foreign contractors, global supply chain arrangements, exchange rate volatility and declining military spending
US and global defense industrial base, shifting economic and strategic landscape, defense contractors, foreign contractors, global supply chain arrangements, exchange rate volatility and declining military spending
Advisors
Date of Issue
2010-11-04
Date
04-Nov-10
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
Over the past twenty years, following the end of the Cold War, the defense industrial base in the US has witnessed many changes and continues to face new challenges. The purpose of this study is to evaluate the evolution of the US and global defense industrial base in response to the shifting economic and strategic landscape. Specifically, it examines the impact of macroeconomic factors on the defense industrial bases in the US and overseas, and discusses the trends in fiscal debts and deficits and their potential impact on military spending. Second, it discusses the impact of the shift in defense priorities toward irregular warfare and away from conventional warfare on the defense industrial base, and discusses areas of growth, as well as potential shrinkage. Third, it evaluates the ability of large defense contractors to compete with smaller firms in growing market spaces due to rising legacy overhead costs, as well as the financial impact of the strategic business base shift of large defense contractors. The analysis then assesses the development of the global defense industrial base and the role of foreign contractors in the US defense industrial base. In examining global supply chain arrangements, which promote interlinkages between domestic industrial bases, the study looks at the role of exchange rate volatility and declining military spending on defense products. Finally, the analysis examines the greater overseas orientation of elements of the US defense industrial base which are focused on traditional military equipment, as well as the growth of overseas defense industrial bases.
Type
Technical Report
Description
Sponsored Report (for Acquisition Research Program)
Series/Report No
Department
Acquisition Management
Other Research Faculty
Identifiers
NPS Report Number
NPS-AM-10-182
Sponsors
Naval Postgraduate School Acquisition Research Program
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.