#KEM Quarterly on Defense: 2016 Defense Trend & 2017 Budget Request

With 2017 defense budget request release ($582.7 billion base budget and overseas contingent operations, 2/2/2016) & the President’s last State of the Union address (1/12/2016), it is key to take a moment for the A&D market to reflect and understand the trend for the rest of the year and his administration.

2017 Defense Budget Proposal

Source: Defense.gov

As #KEM looks to the future and growing global challenges, we focus on Secretary Carter’s comments regarding trade-offs between force structure for modernization to support the U.S.’s technological innovation edge across air, land, sea, cyber, space, and electronic warfare.

Carter further outlined five challenges for budget planning including Russia, China, North Korea, Iran, and terrorism that will focus DoD for FY 2017.

SD spoke at the Economic Club of Washington, D.C.

Source: Defense.gov

“Where trade-offs among force structure, modernization and readiness posture needed to be made, we generally pushed to favor the latter two. This is important, because our military has to have the agility and ability to win not only the wars that could happen today, but also the wars that could happen in the future,” SECDEF Carter, Economic Club of Washington.

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