After a Tumultuous Year, Can Defense Industry Get Back to Business in 2014?
Defense industry is happy to bid 2013 adieu.
It was the year when the hits just kept on coming. The dreaded
sequester that everyone predicted would never happen, happened, as well
as a government shutdown to boot. Government workers were furloughed,
and Congress allowed them to recover lost pay. No such break was
afforded to contractors. The industry had anticipated the Pentagon would
pare back spending following the end of two wars, but CEOs were not
prepared for business to grind to a halt as Washington crawled through
the gridlock.
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Even this relatively small adjustment to
military benefits is remarkable, [Russell] Rumbaugh noted, because it constitutes a
transfer of spending from personnel costs to operations and
modernization. This budget deal, he said, is a “heck of a holiday
present for the defense establishment.”
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