Aerospace and defense programs are under fire and projected decrease in government spending may not reinforce the industry and its exchange traded fund (ETF).
As small aerospace firms are pummeled by the financial crisis, the disruption to the global supply chain poses a “significant risk” to the aerospace industry, write Tim Hepher and Andrea Shalal-Esa for Reuters.
Defense spending by the United States is predicted to flatten out in coming years due to budget pressures and high cost of military upkeep, which will delay new arms programs, reports Andrea Shalal-Esa for Reuters. This will affect Boeing (BA) and its continued growth in defense businesses of 4% to 5% each year. But Boeing may shore up profits by extending current programs, win new contracts, grow international sales, and reduce its own cost structures.
Lobbyists for America’s aerospace and defense industry are preparing themselves to persuade President-elect Barack Obama to continue high budgets for prized Pentagon weapons programs and also to include national aviation infrastructure in a potential economic recovery plan, scribes Bryan Bender for The Boston Globe.