As President-elect Trump’s national security team begins to take shape, questions are swirling in the defense industry about the future of several key Obama administration initiatives to modernize the U.S. military arsenal.
The post-election buzz in the defense sector has built around Trump’s anticipated moves to increase military budgets and possibly negotiate with Congress a repeal of the 2013 law that set limits on discretionary spending.
Aside from budgets, the industry also wonders whether the new administration will embrace efforts started by Defense Secretary Ashton Carter and Deputy Secretary Robert Work over the past two years to reshape Pentagon acquisitions and investments, and infuse commercial innovation into military programs.
The defense market has been especially rattled in recent years by the introduction of the so-called “third offset” strategy, which calls for the development of advanced technologies to close the gap with emerging powers. Pentagon contractors also have had to adjust to Carter’s push to attract tech companies to the military market, out of concern that established defense firms are not keeping up with the rapid pace of commercial innovation in cybersecurity, electronics, robotics and other areas. He opened technology outreach offices in Silicon Valley, Boston and Austin, Texas, known as Defense Innovation Unit Experimental, or DIUX. |
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