Tuesday, January 31, 2023
  • About us
    • Write for us
    • Disclaimer
    • Terms of use
    • Privacy Policy
  • RSS Feeds
  • Advertise with us
  • Contact us
DefenceTalk
  • Home
  • Defense News
    • Defense & Geopolitics News
    • War Conflicts News
    • Army News
    • Air Force News
    • Navy News
    • Missiles Systems News
    • Nuclear Weapons
    • Defense Technology
    • Cybersecurity News
  • Military Photos
  • Defense Forum
  • Military Videos
  • Military Weapon Systems
    • Weapon Systems
    • Reports
No Result
View All Result
  • Home
  • Defense News
    • Defense & Geopolitics News
    • War Conflicts News
    • Army News
    • Air Force News
    • Navy News
    • Missiles Systems News
    • Nuclear Weapons
    • Defense Technology
    • Cybersecurity News
  • Military Photos
  • Defense Forum
  • Military Videos
  • Military Weapon Systems
    • Weapon Systems
    • Reports
No Result
View All Result
DefenceTalk
No Result
View All Result

Pentagon fights defense industry consolidation

by Agence France-Presse
February 16, 2022
in Defense Geopolitics News
2 min read
0
Bezos defends Amazon effort for Pentagon cloud project
14
VIEWS

The big-spending Pentagon opened a campaign Tuesday against the consolidation of defense contractors, saying competition has dwindled as arms suppliers merge and supersize.

In an official report, the Department of Defense (DoD), which has a budget of $768 billion this year, said the shrinking number of suppliers threatens national security and limits the potential for developing new technologies essential to future warfare.

The report said the department needs to make concerted efforts to boost smaller companies, noting they generate more patented innovations than larger companies but can lack the financial strength to survive the department’s often years-long procurement process.

“This is a national security concern, but it’s also a major economic concern,” said a senior government official in a briefing for media.

“Consolidation also threatens the small businesses that are critical to our economy over the past decade; the number of small businesses in the defense industrial base has declined by 40 percent,” the official said.

The report noted that today just a handful of giant companies dominate supply to the US military: Boeing, Lockheed Martin, Raytheon Technologies, General Dynamics and Northrop Grumman.

That group has shrunk sharply through the two decades of war in Afghanistan and Iraq.

Since the 1990s, the number of aerospace and defense prime contractors has narrowed from 51 to just five, the report said.

Suppliers of major weapons system have also fallen sharply in number.

Producers of tactical missiles have declined from 13 to three, fixed-wing aircraft suppliers fell from eight to three, and satellite makers have dropped from eight to four.

“Such consolidation leaves DoD increasingly reliant on a handful of companies for critical defense capabilities,” the report said.

“Small businesses spur innovation, producing 16.5 times more patents than large firms, and form the next generation of suppliers to support the DoD mission,” the report said.

Without action, it said, the Pentagon could lose 15,000 more suppliers over the next decade.

Pentagon officials said they would work with government antitrust regulators to combat consolidation.

The report came out just as Lockheed Martin withdrew its $4.4 billion takeover bid for Aerojet Rocketdyne, which produces rocket engines, after the Federal Trade Commission took action last month to block the merger on antitrust grounds.

Tags: arms suppliersdefense contractorsdefense industrypentagon
Previous Post

Sites of Ukraine defence ministry, state banks under cyberattack

Next Post

Lithuanian troops in Ukraine to provide missile training

Related Posts

China made third-largest air incursion this year, says Taiwan

Senior US general warns of possible looming war with China

January 28, 2023

A four-star US Air Force general has warned of a conflict with China as early as 2025 -- most likely...

Denmark in talks with Israel to replace howitzers donated to Ukraine

Denmark in talks with Israel to replace howitzers donated to Ukraine

January 27, 2023

After pledging all 19 of its French-made Caesar howitzers to Ukraine, Denmark is in talks with Israeli arms maker Elbit...

Next Post
NATO, Russia Meet at Odds over Missile Shield

Lithuanian troops in Ukraine to provide missile training

Latest Defense News

India approves purchase of 33 Russian fighter jets

Two Indian military jets crash, one pilot killed

January 30, 2023
China made third-largest air incursion this year, says Taiwan

Senior US general warns of possible looming war with China

January 28, 2023
French Air Force Mirage 2000 jet fighter

France could meet Ukraine’s demand for fighter jets

January 27, 2023
Denmark in talks with Israel to replace howitzers donated to Ukraine

Denmark in talks with Israel to replace howitzers donated to Ukraine

January 27, 2023
Israel, Gaza militants trade missiles after deadly West Bank raid

Israel, Gaza militants trade missiles after deadly West Bank raid

January 27, 2023
Leopard tanks to arrive in Ukraine around late March: Germany

Leopard tanks to arrive in Ukraine around late March: Germany

January 27, 2023

Defense Forum Discussions

  • Military Aviation News and Discussion
  • The Russian-Ukrainian War Thread
  • Italy defence procurement, arms counter-trade and weapons exports
  • China - Geostrategic & Geopolitical.
  • Royal Australian Air Force [RAAF] News, Discussions and Updates
  • ADF General discussion thread
  • Great Power Competition
  • Russia and the West
  • Japan, Koreas, China and Taiwan regional issues
  • NZDF General discussion thread
DefenceTalk

© 2003-2020 DefenceTalk.com

Navigate Site

  • Defence Forum
  • Military Photos
  • RSS Feeds
  • About us
  • Advertise with us
  • Contact us

Follow Us

No Result
View All Result
  • Home
  • Defense News
    • Defense & Geopolitics News
    • War Conflicts News
    • Army News
    • Air Force News
    • Navy News
    • Missiles Systems News
    • Nuclear Weapons
    • Defense Technology
    • Cybersecurity News
  • Military Photos
  • Defense Forum
  • Military Videos
  • Military Weapon Systems
    • Weapon Systems
    • Reports

© 2003-2020 DefenceTalk.com