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a recent, management transition to improve proÞ tability. The company intends to increase its portfolio and supply a greater variety of vessels. OUTLOOK ? UNCERTAIN FOR FMS SALES, BUT GOOD FOR OSVS Lozano at Willard anticipates that U.S. defense budget cuts will impact the FMS program. ÒIf the sequester goes through as expected, people will be furloughed, time of contracts will be affected and work will slow con- siderably,Ó he said. ÒDelays will add to backlogs. That will inß uence sales projections and possibly the quan- tity of boats that will be purchased.Ó But tensions in the Middle East and elsewhere indicate that demand for military vessels will remain strong, industry members said. WhatÕs more, the need for more specialized, sophis- ticated and bigger offshore oil vessels will keep that market well supported, they predicted. If diversiÞ cation is the key to beat- ing sequestration and leaner gov- ernment spending habits predicted for the future, then these U.S. yards probably already have a leg up on the competition Ð foreign or domestic. U.S. yards can and do compete with foreign yards in certain sectors. That much, we know for sure. Interior view of 35m patrol boat built by Swiftships Shipbuilders, LLCwww.marinelink.com MN 43MN March2013 Layout 32-49.indd 43MN March2013 Layout 32-49.indd 433/4/2013 3:24:52 PM3/4/2013 3:24:52 PM