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Defense industry needs 5 percent annual budget growth to stay healthy, says new AIA report
Military Times: The American defense-industrial base needs Pentagon budgets to grow at least 5 percent per year to remain healthy and stable, the industry’s leading trade group said in a report released Wednesday.
The report by the Aerospace Industries Association blames Budget Control Act cuts and Congress’ repeated deferral to continuing resolutions for a steep drop in the market’s number of prime vendors. It’s unclear exactly how smaller suppliers have been impacted, but “the detrimental impact of budget cuts have been felt throughout the supply chain,” the report reads.
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