The across-the-board U.S. budget cuts known as sequestration – which will chop $46 billion from the Defense Department budget this year and $500 billion over 10 years if not overturned – are accelerating efforts by America’s defense industry to find new customers around the world.
Faced with a big drop in orders for goods and services from the Pentagon, U.S. defense contractors face the prospect of lower earnings, downsizing and worker layoffs unless they can find new customers. Other countries around the world could become those customers.
In a globalized world where U.S. security is increasingly linked to weaker nations’ insecurity, the next new business opportunity for the defense industry lies not solely in building armies, but in helping to build secure and resilient societies worldwide.
Read the article in full in Investor’s Business Daily here.
Photo courtesy of U.S. Army Europe Images vis flickr