For some time, our industry has advocated that reductions in the defense budget be made on the basis of a new national defense strategy that seeks to secure America's future rather than simply applying lower numbers across-the-board. We therefore appreciate the evident hard work and thoughtful process that President Obama and Secretary Panetta described in developing the new strategy and their commitment to avoid arbitrary cuts.

We are encouraged that Secretary Panetta made it clear once again that sequestration was not an option for the strong defense that our nation deserves. He also specifically recognized the importance of a strong industrial base to support the military. It's been a long-standing concern of defense experts that ill-considered cuts will leave the industry unable to develop and build the technologies and the capabilities that have made America's military the finest in the world.