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Restructuring the Defense Industries

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The defense industries in the U.S. have experienced a wave of mergers and acquisitions after the end of the Cold War that have reduced supplier competition, but production capacity. In a series of studies the opportunities to reduce this production capacity overhang are being explored. Once the interwar years when production needs are less the vital defense technologies were maintained by government arsenals. Now, most of the arsenals have disappeared or focus on repair and maintenance activities. In their place are the private arsenals, defense firms upon which the government is very dependent and which in turn are very dependent upon the government. The system is costly and encourages the production of needless military equipment.

Professor Harvey M. Sapolsky manages these studies.