An ability to cooperate on programs will be critical because countries are leaning on cost sharing as defense spending in many places falls, said Phil Finnegan, an analyst with the Teal Group. “Cooperation, that is a direction that the industry is going,” Finnegan said. “Japan is now moving in that direction as well.” But Finnegan said opportunity for economic gain through military equipment sales is likely years down the road because of the high manufacturing costs Japanese companies face. “Nothing is going to change quickly; maybe in the long run, they can play a role in the international market,” he said. “It’s a very insular industry, and by its nature, it’s going to be expensive.”
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