At current, the U.S. Army is at risk of losing its tactical advantage if its modernization strategy does not change. This report identifies the challenge for Army modernization and provides recommendations for the Army to maximize the effectiveness of its modernization budget.
While the implementation of budget cuts from the Budget Control Act of 2011 has caused concerns for the industrial base, the resulting debate lacks empirical analysis. This research measures the impact of the defense drawdown across all the tiers of the industrial base. The technical approach analyzes prime and subprime DoD contract data to measure the drawdown’s impacts by sector to better understand how contractors have responded to this external market shock.
At current budgetary levels modernization is a third priority behind rebuilding readiness and maintaining force structure. Additionally, any increase in budget will be unlikely to help resolve this challenge. This report reviews the army modernization challenge.