The end of the Cold War and consequent easing of international tension suggests that the United States now faces less possibility of long- term or large-scale military conflict. This perception and the call for reaping a "peace dividend" from the fall of Communism in Europe convinced decisionmakers to reduce the defense budget and the size of U.S. military forces commensurate with the perception of a reduced requirement for armed forces. This general demobilization and the accompanying shift of resources away from defense procurement results in a significantly smaller Land Combat Systems industrial base that must look to government for a rationale to ensure its survival. In the absence of a strong vision, this industry will continue to shrink--possibly at the risk of extinction.
ICAF Industry Studies 1997