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Analysis / Acquisition, Budget

Measuring the Impact of Sequestration and the Defense Drawdown on the Industrial Base

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.