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Thursday, 31 July 2014

Defense Industry Investments | Defense Sector Investment Opportunities

The Pentagon was declared the big winner of the massive federal budget bill that Congress passed for fiscal year 2014. The spending bill approves $497 billion for the Defense Department, or about the same as in 2013. The Pentagon gets an additional $85.2 billion for war expenses — about $5 billion more than it requested.

Weapons manufacturers are not celebrating, though. Industry sees long-term decline, global trends that could upend the arms business, and a Pentagon customer that is becoming consumed by internal budget battles and is reluctant to commit to big-ticket programs.

The industry is indeed entering a period of change, and defense companies’ fortunes are tied to broader market shifts and government policies that could have lasting impact.

Read More:  The Challenges and Opportunities We See in the Defense Industry

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