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What Obama's 2016 Budget Brings to Aerospace

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Published on : Feb 10, 2015

The 2016 U.S. budget contained some interesting – or boring, depending on your standpoint - inclusions, such as the presence of major commitment to weapons acquisition and the lack of the cancellation of major projects.

However, there were indications about the way the Department of Defense intends to reshape the strongest military force in the world. The new developments favor a lighter, agile, but technologically superior force structure as the one to maintain over a number of years. This is the result of the impending culmination of the two of the U.S.’s biggest conflicts in recent times.

As the wars draw to an end, the Department of Defense is looking to wipe out its footprint as much as it can, i.e. as much as a First World superpower with a battery of nuclear-powered aircraft carriers can. The priorities of the Department of Defense now lie in investing in safeguarding the future and ensuring they stay one step ahead of competitors when it comes to innovation in military technology. This includes futuristically advanced weapons and defense systems as well as more sophisticated protection such as cyber safety.

Obama’s 2016 is also representative of the Pivot to Asia, which is a plan to rebalance the global assets of the United States so that they favor Asia Pacific countries more. US$585 billion have been allocated for the Pivot to Asia operation.

This breakup of the budget reveals that it supports the growth of more mobile and customizable drones.

“It represents a bit of a rebound from what was a one-year dip,” says Richard Aboulafia, the Teal Group’s vice president. The Teal Group works in analysis at aerospace and defense consultancy. “There was a bit of a panic from the fiscal 2015 budget. It’s a nice rebound if there’s no sequester impact.”

If Aboulafia’s big ‘if’ goes as per plan, the budget will favor the aerospace industry massively.

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