The defense industry is on the rebound, with a new wave of business opportunities and an influx of skilled workers looking for stable and patriotic employment. Homeland security, missile defense, and new information technologies are among the initiatives bringing new money and new programs to defense contractors. Commercial companies with defense accounts also stand to benefit by providing software, hardware, supplies and gear to government clients more eager than ever to procure commercial products and technologies.

The top five defense contractors -- Lockheed Martin, Boeing, Newport News, Raytheon and Northrop Grumman -- are involved with most of the major programs. However, companies such as Veridian, Titan and SAIC have grown rapidly in the past few years by focusing on critical problems and providing aggressive, commercial business practices. The list of top defense contractors also contains large commercial companies such as AT&T, GE, Motorola, and Humana, companies that provide the broad range of services necessary to run the largest military in the world.

Several major programs being awarded to contractors in 2002 should create a large number of new defense industry jobs. The largest contract being awarded this year is the U.S. Coast Guard Integrated Deepwater System, a 19-year, $9.8B overhaul of the U.S. Coast Guard. Lockheed, Boeing and SAIC are competing to provide the Coast Guard with ships, communications, and information systems for the next 20- to 40-years.

New concerns over homeland security have also put major defense initiatives on the fast track. President Bush has recently requested $5.2B for new homeland security initiatives. Look for major contract awards to improve airport security and baggage screening, border control, immigration and provide integrated missile defense. Funding for disaster response will help fire departments, law enforcement and the National Guard procure high-priority technology products including X-ray screeners, IR cameras and communications gear.

In addition, the administration has requested $5.5B to provide relief for New York, and up to $14.1B for the anti-terror campaign that includes operation Enduring Freedom. These funds will help generate jobs that support recovery and war efforts, including replenishing precision munitions, maintaining aircraft, and accommodating over 80,000 troops in the Persian Gulf.

More than ever, government is looking to the private sector to service and staff its program initiatives. This trend points to an evolving workforce characterized by a combination of commercial and defense credentials, as well as stronger mobility to support a more competitive and increasingly tech-oriented industry.
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