Posts Tagged ‘Shrinking Budgets’

The Reinvention of Defense Contractors in an Era of Shrinking Budgets

With the Cold War long over, the War on Terror winding down, and a budget crisis looming over Capitol Hill, it is not surprising to learn that decreases in spending by the U.S. Department of Defense are likely to continue and worsen in coming years. States that house companies that once relied on contracts from the Department of Defense for much of their income, including California, Virginia, Texas, Florida, New York, and Maryland, will feel the budget cuts most drastically.

Rather than giving up hope, however, many defense contractors are shifting their focus in order to remain relevant in a changing world. Whereas the majority of defense contracts used to involve the production of weapons and other defense equipment, many of today’s contracts are for information technology products. This new trend reflects the shift from “traditional” security and defense measures, or those that played out in the air, on the land, and at sea, toward cybersecurity and defense, top priorities for the Department of Defense in the 21st century.

About Christina Kauffman: In her work as a Capture Manager with Lockheed Martin’s Enterprise IT Solutions, Christina Kauffman has witnessed firsthand the adaptations that defense contractors have had to make in recent years in order to remain relevant. Prior to joining Lockheed Martin in 2007, Kauffman served with the U.S. Army Corps of Engineers.

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