Accession Number : ADA323934

Title :   Report on the Effects of Mergers in the Defense Industry.

Corporate Author : OFFICE OF THE SECRETARY OF DEFENSE WASHINGTON DC

PDF Url : ADA323934

Report Date : MAR 1997

Pagination or Media Count : 13

Abstract : Defense procurement outlays in constant dollars, i.e., adjusted for inflation. have declined 61 percent from 1987 to 1998. This decline has lowered contractor revenues and increased their excess capacity. Companies have responded to these developments in predictable ways - reducing employment, closing facilities. reengineering processes to become more efficient, developing closer relations with their suppliers, and pursuing merger and acquisition opportunities. Section 826 of the National Defense Authorization Act for Fiscal Year 1997 requires the Secretary of Defense to conduct a study on mergers and acquisitions in the defense sector. It specifies that the study shall address: the effectiveness of defense mergers and acquisitions in eliminating excess capacity within the defense industry; the degree of change in the dependence by defense contractors on defense-related Federal contracts within their overall business after mergers; the effect on defense industry employment resulting from defense mergers and acquisitions occurring during the three years preceding the date of the enactment of this Act; and the effect on competition for defense contracts.

Descriptors :   *CORPORATIONS, *IMPACT, *COALESCENCE, *DEFENSE INDUSTRY, DEPARTMENT OF DEFENSE, ACQUISITION, CONTRACTS, EMPLOYMENT, FACILITIES, CONTRACTORS, MILITARY PROCUREMENT, NATIONAL DEFENSE.

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Defense Systems

Distribution Statement : APPROVED FOR PUBLIC RELEASE