Two Big Reasons the Squeeze Will Continue on US Military Textile Suppliers

DLA Troop Support in Philadelphia recently had a meeting for industry folks. In it, they mentioned that the budget for fiscal year 2011 was 1.9 billion. They had spent 1.7 billion by that time. Yet, everyone was wondering why there have been so few solitications throughtout the year. One big reason is that the cost of fabrics is eating up alot of that budget. Now that we have made the turn to Multicam and fire retardant fabrics, the prices of these raw materials is eating up more and more of the budget. These advances are good and we should be providing these to our soldiers. But ultimately, we’re making a lot less number of units even if the overall budget dollars remain the same. Unfortunately, the number I heard for FY 2012 was $1.5b. No surprise really, but it does make the market a bit more challenging.

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