Defense Industrial Base loses thousands more firms, mainly because DoD is a tough customer | Federal News Network

More than 17,000 companies left the Defense Industrial Base over the past five years, according to an annual assessment by one of the Defense industry's main trade associations.

The Defense Industrial Base is still quite vast, but it’s steadily shrinking. The latest edition of an annual report by the National Defense Industrial Association suggests that even though thousands of new companies are winning their first-ever DoD contracts each year, those new entrants aren’t nearly enough to offset the number of firms who are leaving the Defense market. The latest figures NDIA compiled show the Defense market suffered a net loss of 3,300 companies in fiscal year 2021, the latest statistics available. Although more than 8,300 firms sold goods and services to DoD…

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