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ReseaRch a n d developmenT In T h e aR m y 13<br />
ments. 6 After 1945, the six old-line arsenals, while still maintaining extensive<br />
production capabilities, were essentially repositories of an accumulated knowledge<br />
b<strong>as</strong>e that supported, on behalf of industry, the design and development of<br />
ordnance and <strong>as</strong>sociated weapons delivery systems. 7 <strong>Of</strong> the $2 billion set <strong>as</strong>ide<br />
for weapons production by the Ordnance Department in 1958, for example, 90<br />
percent of that amount w<strong>as</strong> earmarked for distribution to industrial contractors<br />
through the arsenal system. 8<br />
Consequently, the manufacturing firms that had relied on the arsenals<br />
and other service laboratories to jump-start arms production during World<br />
War II rapidly built up their own in-house technical capabilities afterward to<br />
meet the anticipated demand for incre<strong>as</strong>ingly sophisticated military hardware.<br />
Expanding internal R&D functions also mitigated the likelihood of technological<br />
obsolescence in<strong>here</strong>nt in arms production. This transformation w<strong>as</strong> especially<br />
evident among those companies that moved aggressively into the electronics and<br />
guided missile fields. These state-of-the-art technologies, not the conventional<br />
weapons traditionally developed in the arsenals, were expected to play a leading<br />
role in a future war. 9<br />
6 Wartime expenditures for the construction of additional production capacity in the old-line<br />
arsenals exceeded $300 million. The Ordnance Department and the other technical services also built new<br />
manufacturing facilities from scratch. The Detroit Arsenal, for example, w<strong>as</strong> established by the Ordnance<br />
Department to manufacture tanks (a function previously <strong>as</strong>signed to the Rock Island Arsenal), and the<br />
Chemical Warfare Service built the Pine Bluff (Arkans<strong>as</strong>), Rocky Mountain (Colorado), and Huntsville<br />
and Redstone (Alabama) arsenals to produce chemical agents and explosives for artillery shells, bombs, and<br />
other types of ammunition. The government, largely through the Defense Plant Corporation, also financed<br />
the construction of weapons production facilities operated by industrial contractors. After the war, these<br />
government-owned, contractor-operated (GOCO) plants were either placed on standby status or continued<br />
operating at reduced production levels. In some c<strong>as</strong>es, manufacturing facilities were purch<strong>as</strong>ed outright by the<br />
contractors. Throughout the postwar period, the military services gradually disposed of their GOCO plants<br />
and other in-house operations. Smith, The <strong>Army</strong> and Economic Mobilization, 497–98, 501.<br />
7 Post–World War II production levels at the arsenals varied according to the supply needs of the military<br />
services. The arsenals generally operated on standby status during peacetime, scaling back manufacturing<br />
functions and focusing instead on research and development. During wartime (Korea, Vietnam), however,<br />
production of conventional weapons in the arsenals rose sharply to match a much larger expansion of output<br />
by private industry. The manufacture of more specialized equipment in the arsenals, such <strong>as</strong> guided missile<br />
launchers, typically did not exceed the pilot production state. Shiman, Forging the Sword, 24, 39–43; C. M.<br />
Wesson, “Adequate National Defense Requires Modernized <strong>Army</strong> Arsenals,” Machinery 45 ( July 1939): 737;<br />
Thomson and Mayo, The Ordnance Department: Procurement and Supply, 12.<br />
8 J. H. Hinrichs, “<strong>Army</strong> Ordnance Arsenals,” Ordnance 43 (September-October 1958): 211.<br />
9 Shiman, Forging the Sword, 53–54, 64–66. In a deliberate move to diversify its defense business in<br />
the 1950s, General Motors scaled back tank and gun production in favor of establishing new markets in<br />
military electronics. The large airframe manufacturers, such <strong>as</strong> North American Aviation, Chance Vought,<br />
Lockheed, Martin, Northrop, and Dougl<strong>as</strong> Aircraft, adopted a similar strategy. These and other firms<br />
diversified into the electronics and missile fields. “[T]he best way to win a foothold among the top 100<br />
[defense contractors] is via the missile and electronics business: the big future contracts will be for rockets,<br />
electronic equipment, and other hardware of the nuclear-space age,” Business Week reported in 1958. “The<br />
Pentagon’s <strong>To</strong>p Hands,” Business Week (20 September 1958): 39; H. W. Barclay, “General Motors Defense<br />
Research Laboratories,” Automotive Industries 127 (1 December, 1962): 44. Many firms entered military<br />
markets for missiles and electronics through a combination of outside acquisitions and internal expansion<br />
of corporate R&D functions. See, for example, J. S. Butz, “United H<strong>as</strong> Proved Value of Research,” Aviation<br />
Week 66 (3 June 1957): 200–13; R. Hawkes, “Convair Seeks Lead Through Research,” Aviation Week 66 (3<br />
June 1957): 215–30; P. J. Kl<strong>as</strong>s, “Bell Advances Avionics on Wide Front,” Aviation Week 66 (3 June 1957):<br />
235–51; E. Clark, “Martin’s Research Is Broad, Varied,” Aviation Week 66 (3 June 1957): 252–65; and<br />
“Chance Vought Stakes Its Future on Research Push,” Business Week (23 July 1960): 104–08.