Inflation impact: How the military may have to adjust spending to handle rising production costs

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Inflation impact: How the military may have to adjust spending to handle rising production costs
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The procurement timeline for some vehicles can run for years, meaning the military will have to fulfill all current contracts despite the rising costs.

of the military as it looks to fulfill outstanding contracts for planes, ships and other vehicles.

"A lot of the things that you're using in the military are, for all intents and purposes, commercial off-the-shelf items that we put on our military vehicles," Phillips explained. "The tires they're making for a Humvee are manufactured in the same factory where we're building Goodyear tires for a Ford F-150 - the same thing with brakes and other ancillary parts."

Usually, contracts for those vehicles will include provisions to cover increased production costs, giving the government the ability to renegotiate in some cases or to shift targets and prevent the contractors from suffering too much.

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