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Old 08-13-2011, 12:43 PM   #1
Bruce0p9y
 
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aker AeroVironmentare expected to benefit from this shift in defense spending priorities. my blog
"What you are going to see is the need for more of the advanced or next-generation capabilities that enable force protection, increased situational awareness and survivability capabilities," analyst Michael Ciarmoli of KeyBanc Capital Markets said.
Despite the cuts to U.S. defense spending, Ciarmoli sees a "healthy" expansion of funding, probably in the high single digits, for the high-margin intelligence and surveillance, and defense electronics businesses.
In April my blog , President Barack Obama asked the defense department to come up with $400 billion in spending cuts spread over 12 years. The war in Afghanistan alone costs the United States more than $110 billion a year.
"Certainly, having high troop level presence is very expensive ... So, if you draw down and ultimately have a stand-off technology approach ... you will have a net gain in terms of lower costs," Gleacher & Co analyst Peter Arment said.
Other companies expected to benefit from the shift include Kratos Defense & Security Solutions Inc and Comtech Telecommunications Corp.
The way the United States has fought the war in Libya, with focus on providing technology to allies in the battle field, is also a pointer to the change in the future model for military engagement overseas.
"Assuming it conducts future missions in this fashion, we believe next-generation capabilities will continue to be procured in a rapid manner, which also augurs well for select defense contractors," analyst Ciarmoli said.
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One piece of equipment that is expected to see a jump in funding is electronic jammers used to counter the improvised explosive devices (IEDs) that have maimed and killed many troops in Afghanistan and Iraq.
IEDs are difficult to counter with conventional bomb detection systems my blog , and industrial major ITT Corp last August won a $455 million contract to develop the jammers my blog christianlouboutinforwomen It was reported that Urai, known as joint counter r
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