Military contractors look for commercial uses

http://www.denverpost.com/ci_22654317/military-contractors-look-commercial-uses

Military contractors look for commercial uses
By KRISTEN LEIGH PAINTER The Denver Post
Posted: 02/23/2013 01:24:43 PM MST
Updated: 02/23/2013 01:24:43 PM MST

DENVER—The world watched earlier this month as President Barack Obama announced at the State of the Union address plans to withdraw 34,000 of the 66,000 troops remaining in Afghanistan by next year. Also this month, Skydex Technologies released its new footwear for commercial use from a quiet Centennial business park.

The two events may seem entirely unrelated, but as the United States continues drawing down troop levels in volatile regions abroad, private U.S. companies such as Skydex that have depended on military engagement for revenues are looking for new commercial applications.

Deployment levels of U.S. troops in Afghanistan have consistently dropped from a peak of 100,000 troops in 2011 and are expected to range from zero to a maximum of 15,000 by the end of 2014. This comes on the heels of a full withdrawal from Iraq in 2011 after peaking at 168,000 in 2007.

Skydex, makers of blast-absorbing floor decking in mine-resistant personnel carriers, relies on military contracts for about 90 percent of its income and the commercial market for the remaining 10 percent. By mid-2014, the company projects a 50-50 split. Its new shoe, designed for bootcamp-style workouts is the first step in this evolution.