Defense Dollars May Be Getting Harder To Find

The President of Boeing Integrated Defense Systems appears to feel the good times for defense contractors fed by decades of The Cold War may finally be ending.
 
Bloomberg reports that in a recent interview, Jim Albaugh commented, quote - "It's possible that 2010 could be the high-water mark as far as defense spending." He was referring to recent policy outlined by US Defense Secretary Robert Gates, in which the Obama administration will be refocusing procurement dollars on weapons systems of the type needed in conflicts like those in Iraq and Afghanistan.
 
Albaugh says Boeing, last year, bought six companies with technology and expertise in unmanned vehicles, cyber-security systems and logistics. He adds that Boeing will move more work in-house, reducing the risks involved in integration of outsourced subsystems.
 
Other strategies to guide Boeing through the new defense reality include freshening older products, such as the already-announced stealth adaptation of the legacy F-15 fighter, which may have appeal for both the US military and its allies overseas.
 
The stakes are high. Just over half of Boeing's $61B dollars (in 2008) came from military projects.

FMI: www.dod.mil