As COVID-19 continues to impact our communities and businesses, it should come as no surprise that it has also troubled the defense industry. While the aerospace defense industry is experiencing a disruption in production with slow demand for aircraft manufacturing, surprisingly the arms industry is holding itself together.
Aerospace Defense Operations During COVID-19
As the government attempts a trillion-dollar emergency spend in anticipation of a coming recession, defense contractors are directed to continue working. To provide these business organizations with sufficient resources for manufacturing, the Pentagon accelerated progress payments. A massive $2 trillion in military spending assistance, or the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides $17 billion in cash for defense and $80 billion in loans for desired needs within the aerospace industry.
The aerospace defense factions that have been hit the hardest are the United State’s partner nations. With the pandemic affecting all four corners of the world, partner nations are experiencing challenges in military readiness and the ability to maintain equipment leading to some defense companies experiencing financial weakness.
Aerospace Defense Will Move Forward
This is a challenging time for everyone across all industries. While commercial aerospace companies are being hit hard, the defense industry is continuing to move forward despite limited funding and low-demand.
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