Can Boeing Weather Storm of Defense Cuts?

July 22, 2012

As Congress stares down a legal deadline to rein in the nation's runaway budget deficit, defense spending has become the prime target.

And that puts contractors including Boeing's defense division -- which relies almost entirely on military contracts -- in the cross hairs.

Still, analysts remain cautiously optimistic that the Hazelwood-based Boeing Defense, Space & Security can weather the potential loss of all or part of its $5.3 billion contract to produce 124 F/A-18 fighter jets for the U.S. Navy by 2015.

Boeing's defense business also has clients other than the Uncle Sam, which will help cushion a drop in U.S. military spending.

An agreement to provide F-15s to the government of Saudi Arabia, coupled with a potential deal to sell F/A-18 that the company may soon seal with Brazil, could go a long way to fill the void and preserve Boeing's local jobs through the end of the decade, analysts say.

Read more: 

More Information

NCMA Resources | Advertise | Privacy Policy | Contact Us | Site Map | © 2012 National Contract Management Association