Article: Munitions sector 'in trouble,' despite new funds: Defense department warned about problems with declining supplier base. (Analysis).

An influx of new money at the Pentagon will help replenish cruise missiles and satellite-guided bombs, but it will not necessarily fix industrial base problems in the ammunition sector, sources said.

Companies such as Raytheon and Boeing are working to ramp up production of the Tomahawk cruise missile and the satellite-guided Joint Direct Attack Munition, two of the weapons most heavily used in the air war against Afghanistan, in Operation Enduring Freedom.

But funding shortfalls in conventional ammunition accounts will remain, even though the Defense Department received a $20 billion supplemental appropriation after the September 11 attacks, said ...

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