Tuesday, September 16, 2008
US Defense Industrial Base
If you don't know I also blog at DefenseProcurementNews.com about the defense industry in which I work. This article from AmericanEconomicAlert.com does raise an interesting issue of relying on overseas contractors to build equipment and provide services for the US military. Since WW II Canada, Australia and British companies have pretty much been treated as if they were US. Now the US, for a variety of reasons related to industrial base, competition and fiscal strains, rely on companies from many European and South West Asian countries. Often there is only one company left in the US that can do the work, so for competition purposes a European one bids. The US economy may not be able to support the amount of work, or be poorly placed to do so. It is certainly possible to build up the US industrial base but it most likely would require US taxpayer investment, like in WW II.