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Mike Petters: Gov’t Should Give Industry ‘Clear Signals’ on Future Budget Plans

Mike Petters
Mike Petters

Huntington Ingalls Industries CEO Mike Petters said that industry needs “clear signals” from the government to determine the focus of new investments as contractors work to drive down long-term costs, Reuters reported Monday.

Petters said that continued budget uncertainty and other Defense Department priorities prevent vendors from investing or pursuing research on new technologies or processes, Andrea Shalal writes.

“It sort of feels like we’re saving money, because we’re keeping the numbers down, but in fact we’re making the things that we want to buy… more expensive,” Petters told Reuters in an interview.

He noted that companies take cues from the government on potential investment areas and sales leads.

Shalal reports that Petters also believes lawmakers will eventually decide on lifting the budget sequester and hopes they will fund weapons research and other defense procurement activities.

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