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Reuters: War in Ukraine boosting US defense industry

by Nate Ostiller October 28, 2023 6:33 PM 2 min read
A soldier runs past a M142 High Mobility Artillery Rocket System (HIMARS) during Dynamic Front military exercise led by the United States in the Oksbol training area, Denmark, on March 30, 2023. (Sergei Gapon/Anadolu Agency via Getty Images)
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The U.S. defense industry has seen increased profits as Washington seeks new contracts to refill depleted domestic stockpiles and European countries, wary of Russia, have placed new weapons orders, a Reuters report on Oct. 27 detailed.

Some of the biggest U.S. defense contractors, such as Lockheed Martin and General Dynamics, reported a surge in revenue as governments around the world, including the U.S, increased their demand for weapons and ammunition.

The U.S. has sent Ukraine a significant amount of military equipment from its stockpile, and now that must be replaced with new orders.

This need to backfill the U.S.'s stocks has buoyed the domestic defense industry, which has also supplied Ukraine directly.

The trend is not limited to the U.S.- European defense contractors have also seen increased demand and higher revenue as a result.

Characterizing the U.S.'s aid for Ukraine as a boost for the American economy has been considered as a potential way to help revive the flagging support among the population of the U.S., especially in the Republican party.

Many of the factors used by U.S. defense contractors are located in typically Republican-leaning states, and as demand increases, so too does the need for more workers.

An opinion article released by the German Marshall Fund on Sept. 25 argued that the U.S.'s sustained military aid to Ukraine has been, in effect, "reinvested" at home.

Lockheed Martin, which makes the High Mobility Artillery Rocket Systems (HIMARS), announced in September that it was planning to increase the workforce of its plant in Camden, Arkansas, by 20%.

General Dynamics, which also makes military equipment used by Ukraine, will open a new factory in Mesquite, Texas, that will employ more than 125 people and boost the local economy.

Ukraine has also seen a significant increase in its own domestic defense industry. More than 200 Ukrainian companies have begun developing drones, Prime Minister Denys Shmyhal said on Oct. 7.

Ukraine may soon be able to produce tens of thousands of drones per month, Minister for Strategic Industries Oleksandr Kamyshin said on Oct. 25.

Deadly drone arms race intensifies as Ukraine, Russia embrace the future of war
At this stage of a war that could last years more, both Ukraine and Russia are getting serious with their drone game: ramping up production while always looking to come up with new innovations.

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