Printer Friendly

EIA FORECASTS DOD PROCUREMENTS BUDGETS TO STABILIZE IN 1994

 SAN FRANCISCO, Oct. 12 /PRNewswire/ -- "Although total Department of Defense (DoD) spending will continue to decline from $264 billion in 1993 (measured in constant 1994 dollars) to a floor of $201 billion in FY 2003, the procurement account is predicted to stabilize in 1994," according to the Electronic Industries Association (EIA) Ten-Year Forecast of Defense Electronics released here today. The basic reason for this forecast of the procurement budget is that DoD's investment budgets have been preferentially reduced for eight years, at a greater rate than the rest of the budget, such that further reductions could lead to unacceptable vulnerabilities and risks, even to the smaller forces now planned.
 "Our research told us that the U.S. wants to maintain a ready and capable, albeit smaller, military force and is not ready to completely disarm," EIA said. "There is a minimum investment required to sustain such a military, and EIA predicts that in FY 1994 we will have reached that minimum for the procurement budget.
 "DoD will continue to invest 14 to 15 percent of its total budget into maintaining its technological edge. However, we will see about a 22 percent reduction in R&D funding over the next 10 years as many programs are terminated or transitioned into procurement," said EIA. "Most DoD reductions will come from the personnel and operations and maintenance accounts."
 This authoritative annual forecast predicts the electronics market within the U.S. Department of Defense and the National Aeronautics and Space Administration (NASA). The EIA study for fiscal years 1994 through 2003 identifies the economic, political and military factors which will determine DoD and NASA budgets and forecasts trends in procurement and research and development.
 Strength in Electronics Foreseen
 "As in years past, all of our research reveals that DoD will be spending more of its investment dollars on electronics as it seeks to take advantage of technological advances and to maximize the fighting power of the smaller forces planned for the future. As stated in past forecasts, defense electronics will remain the healthiest segment of the defense industry," said EIA.
 The Ten-Year Forecast is based on analyses prepared by EIA member companies that are supported by extensive interviews with defense and aerospace experts from Congress, the administration, DoD, NASA, think tanks and Wall Street. Top-down DoD budget forecasts reflecting both industry and government views are balanced against a bottom-up estimate of program and force level operating costs and checked against a sophisticated model of the DoD budget. The resulting forecasts are highly regarded by market planning experts in government and industry.
 Other EIA industry-prepared analyses presented at the conference included: Defense Electronics in the Middle East; Missions, Programs and Technologies Assessments; and special market studies on the Space Market (Military and Civil), Theater/Tactical Missiles and Precision Guided Munitions, and Synthetic Environments.
 For more information, contact Mary Lamb of EIA at 202-457-4943. The final report from the conference will be available in December. To order a copy of the report, contact Kelly Curtis at 202-457-8748. Cost: EIA Government Division Member Companies, $195, non-member companies, $425.
 -0- 10/12/93
 /CONTACT: Mary Lamb of the Electronic Industries Association, 202-457-4943/


CO: Electronics Industries Association ST: California IN: ARO SU:

MH-IH -- DC020 -- 1217 10/12/93 15:10 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 12, 1993
Words:542
Previous Article:NATIONAL CITY COMMUNITY DEVELOPMENT CORPORATION TO SERVE AS EQUITY PARTNER IN DEVELOPMENT OF 105 NEW HOMES IN NORTHEAST YOUNGSTOWN
Next Article:VIRGINIA ELECTRIC AND POWER COMPANY OFFERS TO PURCHASE BONDS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters