The US defence budget faces sweeping cuts, the first since 9/11. Big projects and signed deals such as a $14-billion runaway effort to build sophisticated new armored expeditionary vehicles for the U.S. Marines and the problem-plagued vertical takeoff version of the new F-35 warplane are being held back or cancelled.  

Aerospace and defence companies are next in line to feel the effects of the economic crash that started with the banking sector. This large industry that saw substantial growth during recent years but remains heavily dependent on government and especially military spending.  Sustaining their growth will be a challenge, and may ultimately lead to consolidation or restructuring.