Defense Spending Cuts Affect Smaller Contractors in Texas

Defense Contractors

As defense spending priorities shift due to cutbacks and an evolving defense strategy, smaller contracting companies are adjusting their strategies and services.

In particular, companies in North Texas that provide ancillary services to larger defense contractors like Lockheed Martin and Boeing, are adjusting to slow-down in the large F-35 and 787 programs and altering their strategies.

In one instance, after H.M. Dunn was selected by Lockheed to manufacture key structural parts for the F-35 program warplane, the company invested more than $20 million in equipment to upgrade its machining capabilities. The company has failed to see returns on the investment after Defense Secretary Robert Gates ordered that F-35 purchases be cut back dramatically. Now the company is actively seeking new defense projects.

Yet the Pentagon’s request for $671 billion in the 2012 budget proposal sent to Congress last week includes new opportunities smaller defense contractors hope to capitalize on. $128 billion of the budget proposal is for airplanes and helicopters, ships and trucks, and rockets, missiles, bullets and bombs.

For a list of smaller defense contractors in North Texas that would benefit from the new defense budget, click here.

Chandler Harris is a freelance business and technology writer located in Silicon Valley. He has written for numerous publications including Entrepreneur, InformationWeek, San Jose Magazine, Government Technology, Public CIO, AllBusiness.com, U.S. Banker, Digital Communities Magazine, Converge Magazine, Surfer's Journal, Adventure Sports Magazine, ClearanceJobs.com, and the San Jose Business Journal. Chandler is also engaged in helping companies further their content marketing needs through content strategy, optimization and creation, as well as blogging and social media platforms. When he's not writing, Chandler enjoys his beach haunt of Santa Cruz where he rides roller coasters with his son, surfs and bikes across mountain ranges.

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