Defense: suppliers are challenged to downsize gracefully as they seek to diversify

Transitional steps being considered by US industry in the face of reduced military spending are described. Virtually all major defense firms have begun laying off workers or have announced plans to do so, and many defense companies plan to diversity into, or expand their share of, nondefense work and contracting. The problems encountered by the defense industry when it attempted to diversify after the Vietnam War are examined, and current diversification plans and efforts are discussed.<>