US manufacturer CPI Aerostructures aims to increase the proportion of work coming direct from major prime contractors in a bid to offset the effects of a slowdown in contracts awarded by the US Department of Defense (DoD), which led to “disappointing” 2005 results. Despite defence budget increases and the DoD’s commitment in the 2006 Quadrennial Defense Review to maintain support for ageing aircraft, “there has been a significant slowdown in government contract awards as well as releases under previously awarded contracts”, says president and chief executive Edward Fred. Contract awards fell from $35 million in 2004 to $16.6 million last year.
Source: Flight International