The U.S. Machine Tool Industry and the Defense Industrial Base (1983) / Chapter Skim
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Appendix A: Highlights of Phase I Study
Appendix A: Highlights of Phase I Study
Pages 99-110
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From page 101... ...
Because of its important bear ing on productivity, production rates, and cost containment, modernization of the WD and contractor~owned machine tool inventory is a critical element of the defense industr ial base revitaLization strategy called for by the Defense Science Board, 101
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From page 102... ...
409, Sequin ing depreciation of contractors ' tangible assets to be based on the ir h istor ical or economical useful 1 Ives, may prevent full cost recovery in an inflationary period and thus impede replacement of outdated assets winch efficient equipment. At the least, CAM 409 imposes a substantial recordkeeping burden on contractors; however, the recent elimination of the Cost Accounting Standards Board leaves no current mechanism for its revision.
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From page 103... ...
This committee f inds much of this descr iption plausible. A domestic f inane ial environment more favorable to capital investment would presumably raise sales of machine tools and other forming equipment.
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From page 104... ...
Some of there specialists are currently in very heady demand in growth industr ies, and it may not be so easy to attract them to an industry commonly pence ived as heavily cyclical and technologically backward. Again, competitive salaries will have some effect, as will the challenge of working in an industry wi th technolog ical and management challenges before it.
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From page 105... ...
n Technological change in machine tools and forming technology' the report says r has been prompted over the past 40 years more by user demands (and go~e`=tent-subsidized development) and technical advances in the supplier industries (notably cutting tool manufacturers)
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From page 106... ...
. mach ine tool industry ' s reputation for slowness in applying new technology, and for unreliability in the h igher technology product 1 ines, is no doubt a s ign if icant factor in its market performance against foreign competitors.
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From page 107... ...
In outlining a plan for a more comprehensive study of the industry' s potential contributions to defense needs, the committee has concentrated on these character istics . Such a comprehensive study must begin by setting boundaries on the field of investigation somewhat wider than the machine tool industry's traditional limitation to metal-removing equipment, taking into account new materials and the information technologies of control and systems integration.
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From page 108... ...
Of O Assess the reasons why some machine tool companies prefer not to seek Defense Department contracts.
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From page 109... ...
4. Would formation of a joint Defense Departmentmachine tool industry committee be an effective group to develop plans for surge and mobilization?
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From page 110... ...
Procurement Strategies C Technolog ical Strategies 1.
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