Sequestration, the mandatory and sharp budget cuts that kicked in earlier this year, likely will continue through 2014, a senior defense official told defense-industry representatives during a June 3 meeting. "The cuts we are going to experience potentially will fall on small businesses," Frank Kendall, the undersecretary of defense for acquisition, technology, and logistics, said before an audience during the 2013 Navy Opportunity Forum in Arlington, Va. Larger military contractors will be hit, he said, but should feel the effects to a lesser extent. Kendall also expressed concern that defense-spending cuts are taking place as other nations are increasing theirs. "Potential adversaries are modernizing at a rate which makes me nervous," Kendall said. Effects of a prolonged stretch of $50 billion in annual cuts could be "devastating," Kendall said.