Budget in 2014 Continues DoD Focus on Balancing Essential Requirements and Fiscal Restraint, Notes Frost & Sullivan

Emphasis on proven equipment will reduce spending on RDT&E and new program starts

Jun 20, 2013, 07:45 ET from Frost & Sullivan

MOUNTAIN VIEW, Calif., June 20, 2013 /PRNewswire/ -- Continuing combat operations will sustain spending for essential logistics and weapons programs at relatively high levels in the 2014 Department of Defense (DoD) budget. On-going Special Operations Command activities to combat terrorist groups and build military relationships with allied nations are driving C4ISR and tactical innovation.

Frost & Sullivan Aerospace & Defense (www.defense.frost.com) research finds that the US DoD budget request for 2014 is $616.10 billion including expected overseas contingency operations funding. The study covers Army, Navy/Marine Corps, Air Force, and Joint Service spending for research, development, testing, and evaluation (RDT&E), procurement, operations and maintenance (O&M), and services. The research can help firms choose priority investment areas since it indicates the segments of products and services that the DoD has emphasized in the budget request.

Click here to view the video on Frost & Sullivan's US DoD 2014 Budget Assessment and gain access to the online community- http://bit.ly/14jr9i0.

If you are interested in more information on this research, please send an e-mail to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Emphasis on proven equipment will result in less spending on RDT&E and new program starts through 2017. Reliable platforms and equipment that can be incrementally upgraded to utilize new, but mature, often commercial, technologies and capabilities will have favor over new designs.

"Methods to enhance the interoperability and mission flexibility of current gear will be a high priority," said Aerospace & Defense Industry Analyst Brad Curran. "RDT&E is the most flexible portion of the budget and will probably see the most declines as a percentage of spending."

Economic challenges and competing national priorities result in reduced overall DoD funding. Continuing resolutions and sequestration negotiations also contribute to program funding uncertainty. As a result, new program starts will be rare and will likely have to meet urgent operational requirements and be approved by all the services.

US DoD 2014 Budget Assessment is part of the Aerospace & Defense Growth Partnership Services program, which provides global Mega Trends, information on emerging markets and the latest technology innovations, market, economic, customer, competitive, and best practices research. This CEO 360 degree perspective will enable your company to effectively plan your strategies for growth. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion
Join Us: Join our community
Subscribe: Newsletter on "the next big thing"
Register: Gain access to visionary innovation

US DoD 2014 Budget Assessment

Jeannette Garcia
Corporate Communications – North America
P: 210.477.8427
E: jeannette.garcia@frost.com
Twitter: @Frost_Sullivan or @FrostADS
Facebook: FrostandSullivan


SOURCE Frost & Sullivan