Impact of Budget Constraints

Leveraging data and acquisition expertise, DIIG analyzes the effects of the defense drawdown on the defense industrial base

The presence of a technologically superior defense industrial base has been a foundation of the U.S. strategy since the end of World War II. However, since the implementation of the 2011 Budget Control Act’s mandatory reductions to the federal budget, Congressional, DoD, government oversight, and industry officials have all expressed concerns over the health and future of the defense industrial base. Yet this discussion has largely been anecdotal and lacking in empirical support. Through analysis of trends in prime and subprime DoD contract data and ongoing discussions with acquisition experts, DIIG’s research effort seeks to measure the impact of the current defense drawdown across the industrial base. This research benefits both academics and industry, as both groups seek to better understand the ripple effects of an external market shock, such as the current defense budget drawdown, on an industrial base.

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Charting a New Course for the Industrial Base

Panel discussants will include current and former representatives of United States Government and industry, and discussion will focus on addressing the needs of the industrial base through investments in key capabilities, acquisition reform, and industrial base policy.

Event by Andrew Philip Hunter , Eric Chewning , Frank Kendall , and John Luddy — January 22, 2018

Charting a New Course for the Industrial Base

Measuring the Impact of Sequestration and the Drawdown on the Defense Industrial Base

The presence of a technologically superior defense industrial base has been a foundation of U.S. strategy since 1945. While the implementation of the budget cuts in the Budget Control Act of 2011 has caused concerns for the industrial base, the resulting debate has been lacking in empirical analysis. 

Report by Gregory Sanders , Andrew Philip Hunter , and Rhys McCormick — January 22, 2018

Photo: U.S Airforce / L. Davis

Defense Outlook: A CSIS Series on Strategy, Budget, Forces, and Acquisition

In January of 2016, CSIS launched a new International Security Program initiative examining the dynamics and interlinkages of strategy, budget, forces, and acquisition on the current and future state of the U.S. Armed Forces.

Event by John J. Hamre , Todd Harrison , Mark F. Cancian , Andrew Philip Hunter , and Kathleen H. Hicks — January 27, 2016

The Competition for Capital in the National Security Sector

This event focused on the implications of the fact that defense-focused firms depend on capital markets for resources and confront choices about how to deploy their capital. I

Event by John J. Hamre and Andrew Philip Hunter — December 7, 2015

The Industrial Base After the Drawdown

In order to delve into the core issues facing the defense industrial base, CSIS brought together a panel of defense acquisition experts.

Event by Gregory Sanders and Andrew Philip Hunter — October 21, 2015

The Industrial Base After the Drawdown

How to Tackle the Cost of Sustainment?

On October 16, the Defense-Industrial Initiatives Group released a study it has been working on for the past year entitled “Performance-Based Logistics: A Process Analysis for the Defense Logistics Agency." 

Event by Andrew Philip Hunter — October 16, 2015

How to Tackle the Cost of Sustainment?