From DoD Buzz:
Uber-connected defense analyst Loren Thompson gave his outlook for the defense industry to a group of Raytheon executives the other day and after reading the text of his remarks I imagine some of those execs are considering a career change. The short version: Thompson says defense spending will drop significantly under Obama, weapons programs will be cut first and the industry faces a prolonged period of depressed demand similar to that of the 1990s - as in the “procurement holiday” 1990s.
Thompson is a very smart guy and knows the defense industry and Pentagon procurement backwards and forwards. It’s worth reading his remarks in full as he provides some good historical context for where things currently stand as far as defense spending, industry and the American economy. Thompson reminded the assembled executives that their industry was a Cold War creation. Before around 1950, the defense industry barely existed at all. The threat of communist aggression and ICBMs put the U.S. on a permanent war footing and military spending went from one or two percent of GDP to ten percent.
Read more ....
My Comment: Maybe .... maybe not. With a U.S. recession a distinct possibility for 2009, many Congressmen are going to protect Defense procurements for their districts. There may in fact be an increase when all is said and done..
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