Skip to main content

Policy Issues in Aerospace Offsets Report of a Workshop (1997) / Chapter Skim
Currently Skimming:

DIFFERING IMPACTS OF OFFSETS ON KEY SUPPLIERS AND SUB-TIER PRODUCERS
Pages 27-31

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 27...
... aircraft industry supplier base has experienced rapid and fundamental change caused by a consolidation and reduction of the supplier base, driven primarily by defense cutbacks and a slowdown in the commercial sector. In this larger context, offsets as an issue are "not even on the radar screen." However, he suggested that the situation very likely will change as offsets become a major factor over the next decade or two.
Read the entire page →
From page 28...
... Major firms have adopted a wider approach to supply chain management that goes beyond procurement to strategic supplier integration. Streamlining of business divisions, integration of internal supply chain management functions, and centralization of supply chain management operations have all taken place.
Read the entire page →
From page 29...
... Korea and Singapore target defense technologies, and coproduction is a major feature of offset agreements. The Persian Gulf countries tend to use offsets in new ways, notably to promote economic diversification by requiring aerospace companies to sponsor many kinds of investment projects, including infrastructure building and environmental enterprises, and other ventures far General Acounting Office, Military Exports: Offset Demands Continue to Grow.
Read the entire page →
From page 30...
... Direct Costs of Indirect Offsets Lora Lumpe Director, Arms Sales Monitoring Project, Federation of American Scientists Ms. Lumpe began by saying that, as head of the Arms Sales Monitoring Project of the Federation of American Scientists, she shared Secretary Reinsch's concern about whose job it is to weigh potentially competing corporate and national interests, and particularly whether the public has a "seat at the table" in weighing those interests, principally countertrade.
Read the entire page →
From page 31...
... While offsets were realistically part of doing business, her concern was that there should be adequate public disclosure of the impact of offsets on non-defense industries, especially to balance manufacturers' claims that offsets were jobsustaining. Since defense manufacturers receive substantial assistance in a variety of forms from the government, it is only fair that the public and policymakers be aware of any potential or actual harm to public interests traceable to offsets.
Read the entire page →

Key Terms

  • supplier base
  • arms sales
  • offset agreements
  • industrial capabilities
  • market access

  • offset demands
  • aerospace sector
  • chain management
  • supply chain
  • aerospace companies

  • aircraft industry
  • core competencies
  • gulf countries
  • aircraft initiative
  • defense offsets

  • sales monitoring
  • major firms
  • public disclosure
  • foreign governments
  • larger context

  • buying countries
  • lean aircraft
  • industry supplier
  • american scientists
  • monitoring project

  • support office
  • questioner asked
  • feingold amendment
  • bozdogan observed
  • supplier integration


    • This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
    More information on Chapter Skim is available.