Impact of Sequestration and the Drawdown on the Different Sectors of the Industrial Base
The United States has long recognized the importance of supporting and sustaining an advanced defense industrial base for maintaining global technological superiority. However, the implementation of the 2011 Budget Control Act's (BCA) enforced reductions to the federal budget has prompted Congressional, DOD, government oversight, and industry officials all to express concerns over the health and future of the defense industrial base. The empirical data presented in this report show that the effect of the defense drawdown on industry was substantial; and that defense contract obligations fell across all platform portfolios (planes, land vehicles, ships, etc.). However, the impact of the drawdown on the different sectors of the defense industrial base varied widely and the varying consequences are discussed herein.