The ‘Shrinking’ Defense Industrial Base
include the former having a higher proportion of small contractors; a lower proportion of sole proprietorships; a lower proportion of service providers and a higher proportion of Research and Development providers; and a higher proportion of contractors in the Professional, Scientific, and Technical Services industry.
TABLE 7. SURVEY SAMPLE AND THREE DEFENSE INDUSTRIAL BASE GROUPS ACROSS FIVE CHARACTERISTICS
Study Survey Sample ( n = 679)
DIB Small
DIB Presumed Exits ( n = 83,175)
DIB Remaining Contractors ( n = 48,476)
Variable
Characteristics
Contractors ( n = 95,834)
Small Business
83.80%
n/a
74.46% 69.94%
Size
Other than Small Business
16.20%
n/a
25.54% 30.06%
Northeast
17.38% 15.62% 14.68% 14.51%
Midwest
16.20% 16.48% 15.97% 14.64%
South
35.64% 41.38% 36.99% 39.61%
Location (region)
West
24.30% 25.01% 22.85% 22.46%
Island Areas*
0.44% 1.00% 0.93% 0.73%
International
6.04% 0.51% 8.56% 8.03%
Not Classified
0.00% 0.01% 0.02% 0.01%
Corporate (not tax exempt)
54.20% 55.98% 43.91% 64.93%
Corporate (tax exempt)
4.12% 0.77% 2.65% 4.50%
Foreign government
0.00% 0.00% 0.05% 0.08%
International organization
0.88% 0.00% 0.92% 1.54%
Organizational Type
Partnership
8.69% 10.32% 8.53% 11.31%
Sole proprietorship
4.86% 9.58% 8.31% 7.63%
U.S. Government entity
0.44% 0.00% 0.97% 1.95%
Other
6.33% 5.94% 6.39% 6.72%
Not Classified
20.47% 17.40% 28.26% 1.33%
Research and Development
10.60% 7.09% 5.85%
7.16%
Commodity
Products
46.98% 44.78% 45.59% 37.62%
Services
42.42% 48.12% 48.56% 55.22%
Continued on the next page
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Defense ARJ, Summer 2025, Vol. 32 No. 2: 194—223
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