Studying the Cost Effects of The Shrinking Industrial Base
ARMY TANK-AUTOMOTIVE COMMAND WARREN MI DIRECTORATE FOR SYSTEMS AND COST ANALYSIS
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Downsizing the Army has the effect of reducing the level of involvement of corporations in the defense contracting environment thus, the size of the industrial base decreases. The paper analyzes the cost impacts of the shrinking industrial base with a discussion of the causeeffect issues involved in relating industrial base size to cost. In addition, the paper studies trends in the size of the industrial base over the past several years. Corporate data is used to determine the amount of assets devoted to a particular defense industry over time. Emphasis will be placed on tracked vehicles. The goal is to advance the state of cost analysis by anticipating cost changes on a macro level.
- Economics and Cost Analysis