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for deep-water operations. The tracking and targeting abili- ties of sonar technology are especially affected. As a result, manufacturers must adapt to Navy, Department of Defense and government agency needs in order to stay on the cutting edge of technology. Commitment to Innovation and Quality Throughout America?s manufacturing history, mid-sized  rms like CTG have played an essential role in supporting the research and development that has powered new technology. Inherently, smaller companies can offer greater  exibility and increased low-risk options, creating a breeding ground for in- novation. Mid-sized manufacturers also add value to the larger prime contractors in the industry because of our focus, speed and specialization in technologies. In order to stay relevant to the future defense industry, whether or not budget sequestration occurs, we must dedicate ourselves to this role. A striking example: torpedo technology, optimized for deep sea, has been slow to evolve over the last 20 years. The current littoral water battlespace for peacekeeping and anti-terrorism missions presents a harsh environment where quiet diesel sub- marines can operate without easy detection amidst shipping noise and the sounds of the sea  oor. Mid-sized  rms like CTG have the ability to take the lead and provide innovative sensor solutions essential to our Navy. However, developing those products will require a complete understanding of cus-tomer demands, translation of demands to research and devel- opment and delivery of quality products at competitive prices. Maintaining the Competitive Advantage The potential budget cuts threaten jobs in an already fragile economy, and more importantly, threaten the readiness of our forces. Mid-sized manufacturers like CTG will be affected. However, we must navigate economic uncertainty the same way we are confronting challenges and changes in the nature of military operations and the rapid pace of technology. The stakes are high and now is the time to focus on research and development and improve operations. Even the smallest im- provements we make on our shop  oor to raise quality and reliability today support the men and women who serve and protect our nation.Marine Technology Reporter 17www.seadiscovery.com MTR #8 (1-17).indd 17MTR #8 (1-17).indd 1710/3/2012 9:37:10 AM10/3/2012 9:37:10 AM