Defense

Our defense and aerospace primacy allows us to defend our interests while minimizing risk to our young servicemen and women. This is fundamental to America’s security in a time of terrorists and rogue states.

Facts

  • America needs a strong defense to protect its citizens from threats across the globe.
  • To provide our troops who protect us with the best requires a strong industrial base and robust defense budget.
  • The defense industry consistently ranks below the S&P 500 average in operating margins. Margins are currently trending down and have only reached 10 percent in one year (2008) over the last two decades. In comparison, margins for S&P Software & Services were at 22 percent in 2009.
  • A defense budget equal to four percent of GDP with 35 percent devoted to procurement and research and development will help ensure our security in this uncertain world.
  • Aerospace and defense is a bedrock industry that is vital to national security, our aviation infrastructure, space leadership, technological innovation and the economy.
  • The aerospace and defense industry employs more than one million people across the nation, supporting over two million middle class jobs and 30,000 suppliers from all 50 states.
  • A straightforward way of achieving efficiencies at DOD is the elimination of government unique requirements, which added a cost premium of 18 percent, according to a mid-1990s Coopers + Lybrand study.

 

 Export Control Modernization

  • Industry has consistently advocated for a more predictable, efficient and transparent export control process. Three has been great progress on this front and work is continuing with the State and Commerce Departments to further streamline this process.
  • Enabling our allies to acquire U.S. technology better helps the American warfighter, creates interoperability with our partners, ensures a healthy supply base, and sustains and creates jobs.
  • Industry welcomes the administration’s initiatives to develop a single licensing agency, a single technology control list, a single enforcement fusion center and a single IT infrastructure for export licenses.
  • In the process, attention must be paid to restructuring the U.S. Munitions List and the Commerce Control List, development of a program license approach supporting the U.S. military’s most critical systems, reforming the Defense Department’s Technology Security and Foreign Disclosure system and differentiating treatment of Unmanned Aircraft Systems on the Missile Technology Control Regime.
  • In the first “scrub” of the USML, 74 percent of 12,000 items licensed in 2009 in the tanks and military vehicles category were found not to need ITAR licenses.

Studies

Sequestration Resource Kit
House Armed Services Committee

The Negative Impact of Defense Spending Cuts on the Manufacturing Sector
National Association of Manufacturers
November 2011

Defense & Deficits: How to Trim the Pentagon’s Budget – Carefully
Progressive Policy Institute
October 2011

The Real Defense Budget Questions
Brookings
July 22, 2011

Defending Defense: Warning: Hollow Force Ahead
American Enterprise Institute, Foreign Policy Initiative and The Heritage Foundation
July 21, 2011

Analysis of the FY2012 Defense Budget
Center for Strategic and Budgetary Assessments
July 16, 2011

Defense Budgets, American Power and the National Security Industrial Base
Brookings
July 15, 2011

Part of the Global Forecast 2011
Center for Strategic and International Studies
June 10, 2011

A Defense Policy Vision
The Commander in Chief should Set Out Goals for the Next SecDef
Brookings
June 1, 2011

Defense Investment: Finding the Right Balance
Aerospace Industries Association
May 2011

Defense Contract Trends
U.S. Department of Defense Contract Spending and the Supporting Industrial Base
Center for Strategic and International Studies
May 6, 2011

Rethinking a Resource-Based Strategy
Center for Strategic and International Studies
February 28, 2011

FY 2012 Base Defense Budget Represents a Turning Point
Center for Strategic and Budgetary Assessments
February 14, 2011

China’s Active Defense Strategy and Its Implications
Testimony before the U.S.-China Economic and Security Review Commission
Center for Strategic and Budgetary Assessments
January 27, 2011