The cost-savings and overhead reduction initiative Secretary of Defense Robert Gates is pushing has industry listening, and it only makes sense. Does the Secretary see his legacy in play? Perhaps.
After a decade of record-high defense spending, a spending downturn is all but inevitable, barring an impending war with Iran or having to back up Japan or South Korea in a scuffle with the North.
The heart of the matter is an excess in defense industrial capacity which has accumulated as a natural consequence of ten-years worth of increased defense spending. (more…)