INDUSTRIAL BASE AND THE FUTURE OF UNITED-STATES AEROSPACE POWER

Industry must size itself to the market. During this process, industry will have to emphasize efficiency and productivity to remain competitive. Government should aid this process, but not insert itself in ways that interfere with market forces. The most important role of the government is to clearly articulate its policies, goals, and strategies in the defense arena so that a degree of predictability and regularity can return to defense industry planning. Continued technology development in defense-related areas will depend more directly on the government for financial support and focus. This is a critical area where the Air Force, DOD, and Congress need to implement their intentions to maintain their commitment with funded programs. The worthy goal is to ensure U.S. technological superiority without financially weakening industry. As the defense budget is reduced, it is important to focus industrial efforts on useful products. There are a number of development opportunities that hold the potential to benefit both the commercial and military sectors of the economy. These projects deserve greater emphasis as we strive to compete internationally with our products and maintain a cutting-edge military capability. We have won the cold war. The nation is in the process of a fundamental restructuring of its defense policies and goals to maintain our security and to prosper in the next century. If the cooperative efforts between government and industry can be implemented as outlined here, then industry can respond and prosper in an austere environment. The American defense industry can adapt to the new environment, can invest to make itself competitive in the international economy, and will provide the U.S. military with the equipment, the services, and the technology necessary to keep the country both secure and solvent. © 1993 Taylor and Francis Group, LLC.