Industry: seeking strength in mergers

Industry response to the leveling off in US defense spending is examined. Attempts to enter joint production ventures in order to allay the risks of having fewer systems to bid on are discussed. Many of these joints ventures are international as there are fewer new program starts not only in the US but worldwide. Attention is on the aerospace segment of the defense industry which has been hardest hit by the tighter acquisition environment in the US. Many companies are restructuring or merging. Another option being pursued is to penetrate commercial markets. Industry in general is beginning to spread out its R&D resources by funding joint research ventures and contracting out research.<>