ABSTRACT
Employment information can be assembled on a case-by-case basis from the major contractor and subcontractors in the event of an imminent production line phasedown. A specialized defense conversion process might be appropriate if defense industrial plant closures and cutbacks occurred in widespread numbers within the economy. From a national point of view the $16.5 billion could be spent otherwise and employment would be generated elsewhere in the economy. For three weapons systems, the Pershing II, the Trident I & II missiles, and the Cruise missiles, the Bureau of Economic Analysis (BEA) matched information on prime contract awards with BEA national and regional employment estimates. A specialized defense conversion process might be appropriate if defense industrial plant closures and cutbacks occurred in widespread numbers within the economy. With the exception of a few predominately defense-related manufacturing industries, defense production occurs in industries making both defense and non-defense products.
