Abstract
This paper investigates the factors affecting the likelihood of Lancashire-based companies involved in defence production pursuing strategic responses to defence sector restructuring. Data covering 100 Lancashire-based companies form the Lancashire Defence Survey database, which is analysed. Results of the data analysis are of interest to organizations involved in local economic development policy making. They suggest that the effects of restructuring are most profound in large core defece companies most directly involved in defence production. Other effects are passed on to companies that carry out subcontracting, but there is less evidence of strategies being implemented in response to structural change among these companies. Company size, product type and degree of defence-dependency are uncovered as significant factors influencing whether a strategic response is instigated.