Sometimes dark clouds really do have silver linings. The winding down of two wars and the automatic spending cuts called sequestration have been brutal for the Army budget. The service recently had to cancel its top-priority weapons program, the tank-like Ground Combat Vehicle. But even if sequestration continues, said one leading analyst, ground vehicle spending… Keep reading →

WASHINGTON: Why don’t we make the bad guys bleed money for a change? That’s the strategic insight that helped us win the Cold War, and it seems especially timely today as the nation wobbles back – we hope – from the brink of yet another budget crisis. Delayed by vote calls and overshadowed by the… Keep reading →

WASHINGTON: While the House has voted to extend the debt limit to May, the automatic federal spending cuts called sequestration still loom $90 billion large, half that bill for the Pentagon alone. Yet, as fourth quarter earnings calls begin, the defense industry and its stock values remain remarkably resilient. What gives? Or rather, what isn’t… Keep reading →

[UPDATED 3:30 pm on 1/8/2013 with revised CSBA estimates] WASHINGTON: The battle of the fiscal cliff is over, but the war to stop sequestration rages on – and President Obama’s decision that his new Secretary of Defense should be former Sen. Chuck Hagel, the Republican other Republicans love to hate, makes it even harder to… Keep reading →

WASHINGTON: While anxiety over sequestration dominated yesterday’s annual meeting dominated of the Aerospace Industries Association, its member companies actually did pretty well in 2012. Civil aircraft sales, up 14 percent since 2011, and arms exports, up 12 percent, grew faster than Pentagon spending declined, which was just 3.4 percent. Overall, aerospace and defense profits are… Keep reading →

Paris and Berlin are in a bind as British-based BAE and Franco-German giant EADs, the parent company of Airbus, seek approval to merge into the world’s largest aerospace company. If the French and German governments accept the companies’ current merger terms, their ability to influence the new tri-national behemoth will be sharply diminished and they… Keep reading →

Today’s surprise announcement that UK-based arms-maker BAE and Airbus parent EADS are exploring a merger — sort of, maybe, if their respective boards approve an extremely complex deal that creates a so-called “dual-listed” entity in which each partner still issues its own separate stock — sent shockwaves throughout Europe and through the commercial aviation industry… Keep reading →

WASHINGTON: There are two anchors of conventional views on the U.S. DoD budget outlook. The first is that it is cyclical and headed down and will follow the same trajectory as defense budgets in the last four cycles since the late 1940s. The second anchor is that the U.S. can and should “pivot” its strategy… Keep reading →