ABSTRACT
This chapter discusses the prospects and problems of defense industrial conversion as a strategy for coping with reductions in defense spending. It examines the experiences of several defense contractors who were faced with adjusting to decreases in military procurement during the 1960s and 1970s. To hold the so-called outfitting trades and technicians, Ingalls saw diversification into United States Navy surface ship overhaul and repair as a natural extension. Steel trades workers were also employed in another of Ingalls diversification efforts—rail car assembly. Building large offshore factories was another line of business that Ingalls explored in its wide search for diversification opportunities. The success of Raman's diversification into the musical instrument business can be traced to the firm’s has started with an appropriate technology base, acquisition of a wide distribution network, and sound management practices. Charles H. Kaman himself explained that the firm "started with new technologies from aerospace and that unique capability reduced our risk in manufacturing.".
