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This research brief describes work documented in California's Shrinking Defense Contractors: Effects on Small Suppliers (MR-687-OSD).

Excerpt: Six years after Congress began reducing defense outlays, small California machine shops and aircraft parts suppliers remain highly dependent on the aerospace industry. Many firms in these two segments of the state's small defense aerospace supplier base have not branched into production of cutting-edge products for commercial customers. And other firms in these segments also may face shortages of software and product design engineers and of skilled machinists.

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