The global aerospace and defense industry is out of its doldrums. According to a new report by the accounting firm Deloitte, “the resurgence of global security threats” promises a lucrative “rebound” in defense spending.
The report alerts investors that “revenue growth” is “expected to take a positive turn” due to the terrorism and war in the Middle East and the tensions in Eastern Europe and the South China Sea.
Many analysts predicted declining revenue for the weapons industry as the U.S. scaled down military involvement in Iraq and Afghanistan. After all, as this chart from the Deloitte report shows, no other country even comes close to spending as much as the U.S. does.
But now governments around the world have moved swiftly to hike defense budgets to “combat terrorism and address sovereign security matters.”
The Deloitte report is almost giddy:
2015 was a pivotal year that saw heightened tensions between China, its neighbors and the US over “island building” in the South and East China Seas, and the related claims of sovereign ocean territory rights by China. In addition, Russia and the Ukraine are at odds related to Russia’s takeover of Crimea and their military actions in Eastern Ukraine. North Korea continues to threaten its neighbors with its nuclear ambitions and aggressive rocket launches. The Islamic State (ISIS) has become a key threat in Syria, Iraq, and Afghanistan and is involved in exporting terrorism to Europe, Africa, and elsewhere. The recent tragic bombings in Paris, Beirut, Mali, the Sinai Peninsula, and other places have emboldened nations to join in the fight against terrorism.
Several governments affected by these threats are increasing their defense budgets to combat terrorism and address sovereign security matters, including cyber-threats. For defense contractors, this represents an opportunity to sell more equipment and military weapons systems. Products, which are expected to experience renewed interest from buyers, include armored ground vehicles, ground attack munitions, light air support aircraft, intelligence, surveillance and reconnaissance electronic sensors, cyber protections, maritime patrol ships and aircraft, as well as provision for equipment maintenance and sustainment, as the military operations tempo is likely to increase and more missions are executed.
It is expected that a return to growth for defense subsector companies will likely occur, due to the increased interest by several involved nations as described above. In addition, many large, mainly US DoD defense programs representing billions of US dollars, are likely to start soon, enter the engineering manufacturing design phase, and reach low-rate or full-scale production over the next few years. These programs include Ohio Class Submarine replacement, F-35 fighter jet, KC-46A aerial refueling tanker, Long Range Strike Bomber, USAF T-X trainer, and Rafale fighter programs.
As for factors that might slow the global arms race, the report says little about diplomacy or peace movements. It does note that the fall in oil prices might eventually blunt the weapons-buying trend in the Persian Gulf, although not anytime soon.
In the U.S., as we’ve reported, defense contractors have bragged about pushing candidates toward adopting more militaristic policies. The libertarian trend in the Republican Party, for instance, has largely reversed itself and most candidates have adopted increasingly hawkish views.
Top photo: A French Rafale fighter aircraft takes off with bombs from the French aircraft carrier Charles-de-Gaulle on Nov. 23, 2015, in the eastern Mediterranean Sea, as part of Operation Chammal in Syria and Iraq against the Islamic State.
http://www.teachertube.com/video/bob-dylan-masters-of-war-97786#
Corporatocracy: How the Corporate Welfare State Divides and Conquers
A small, readily-identifiable ruling oligarchy that no serious political observer denies the existence of is able to keep the public from attacking it by dividing them along ideological grounds so that the public spends all their time arguing over definitions and splitting doctrinal hairs instead of attacking the commonly acknowledged enemy. You couldn’t ask for a more perfect system of control.
http://youtu.be/Ez8I8VGLNUw
quote”In the U.S., as we’ve reported, defense contractors have bragged about pushing candidates toward adopting more militaristic policies. “unquote
Is there any doubt now who the real terrorists are? The words “defense contractors” is simply an euphemism for Lords of Terror, notwithstanding Scum of the Earth. In a parallel universe where peace and a regard for mutual pursuit of happiness of the species reign supreme, chromosomally aberrant behavioral traits in certain individuals manifesting in capitalistic drive towards aggression towards other groups would not be tolerated by virtue of daily televised tribunals and instant punishment by guillotine. Here, the Lords of Terror capitalists have captured the legal means to subvert tax payers labor into instruments of death and terror the world over in the never ending .1% pursuit of greed via their diabolical yet successful 1913 plan to foist the Federal Reserve and their coup de gras upon the working class of America..the 16th Amendment. We didn’t get where we are at by accident.
That’s the problem with humans, they just can’t live and love. No matter what’s told or who’s doing the telling it’s always the same. Buildup to destroy, simple.
Humans? It’s really a testosterone-driven male thing. We need more women in power.
The chart which is included in this article needs to
be read as a thermometer which measures
the degrees to which any nation is contaminated and ill.
Those with the greatest military budgets are those
which are the greatest failures at living up to
the possibility of a healthy, constructive society.
The reasons for the emphasis on militarism are
in stark opposition to their ability to achieve
equal justice and social egalitarian realities,
domestically and globally.
With all the enormous resources which were present
in North America at the time of the European invasions
from the 15th Century onward,
this domination of economics by increasing militarization
means that the fake USA is the greatest purveyor of
sickness and failure from all of human history.
The blame is always outsourced and responsible behavior
is scorned and ridiculed as being “unrealistic”
while the sickness is reinforced and spread
through unquestioning pride and its delusions of grandeur.
And why do we need fighter jets , war boats subs etc to fight hoodlums in Toyota trucks with machine guns?. Weapons manufacturers their lobbiysts and bad/politicians are the problem .
They’re sick people they could’ve at least said negative turn instead of “positive turn ”
Then showed the chart . Everybody knows they’re making money.
As much as I dislike agreeing with a fascist on any point, B. Mussolini is right. Freeloading hordes also need to be reminded these deserving, rugged individualists’ accomplishments are realized without help from tax payers directly benefitting from these altruistic deeds, in terms of longevity, better schools and healthcare, job security, physical security, and so much more.
The world situation may seem fortuitous for the arms merchants, but before anyone starts talking about a windfall profits tax, please be aware that arriving at this point required a lot of hard work and planning. Diligence and patience should be rewarded. So we should beware the hordes, who contributed nothing to the present state of hostilities, clamoring for a piece of the pie.
How eerily convenient that conflict and terrorism has increased! Completely in a vacuum of course, with no fomentation by Western interests.
*have*
Another industry that profits from wars is the automobile industry. You can see the ISIS goons driving brand new Toyota trucks. Obviously, the Japanese car maker is making a lot of profit selling them to Turkeys and Saudis, who then donate them to ISIS.
Who are you?
By the way, except those that get killed or injured, rest all people profit from wars in some way or the other.
Obviously defense spending results in a net loss of otherwise useful world productivity; thus most people suffer loss, not gain. The greatest part of the gain is highly concentrated in a few. Trying to blame it on everybody is just stupid.
I guess having the option of avoiding being blown to bits by walking from Iraq or Syria to Calais through a gauntlet of hate is profit in your worm eaten skull, eh?
Thanks GH, it is great to have someone point out how relevant the number of cars and trucks required by an army consisting of a few thousand rebels compared to, you know, like the armies of the whole world. We also know, of course, just how profitable the sales of some over the counter cars is compared to few of a kind defense systems. It makes sense, right? There is no competition in the car industry, but the defense industry is spread equally over many countries, fostering a huge competition and consequent lowering of prices.
Mr. Fang
OK. Maybe Russia should reconsider running a low grade civil war after annexing part of a sovereign country? Possibly the Chinese are inflaming tensions in the South Pacific? North Korea is run by another nut? Islamic terrorists are attacking people globally? The Saudis are bombing the bejesus out of Yemen? Al-Assad initiated the biggest war zone in the world today by crushing a democracy movement? The Pakistan government supports the Taliban in Afghanistan? Etc. etc. etc……..
Yep, these are good days for the defense industry, but obviously demand is up. Capitalism is a rewards-based economic system that works magnificently for the defense industry – especially as long as humans continue to obliterate each other. The defense industry will be a good investment for the foreseeable future……
Defense industry has always been a profitable business back from the ancient times, in fact as far back in history that we can go. Regardless of who wins or loses wars, they always win.
We should sell a few fake nukes to the Shakes in Suadi and Kuwait. They will be happy to possess fakes and we can make use of their rials. It’s not as if anybody is ever going to use any nukes, so it doesn’t really matter whether they are real or fake.
Qatar and the house of Saud are at least as responsible as Assad for the situation in Syria. Not to mention the U.S. creating ISIS in the first place via the Iraq war, and NATO member Turkey allowing them to smuggle at least $1B in oil across the border. And we all know where Saudi Arabia gets the cluster bombs they’re using in Yemen. We’re not in much of a position to criticize Russia’s involvement in Ukraine at this point.
“…….Qatar and the house of Saud are at least as responsible as Assad for the situation in Syria……”
No. Assad is solely responsible for creating the conditions in Syria by crushing a democracy movement. No one else has any responsibility in that regard. And you are wrong about the US creating ISIS. Al-Zarqawi led a brutal war in Iraq after the US invasion to inflame sectarian tensions. The US using the Sunni militias crushed al-Qaeda with the promise to protect Sunni interest in the new Shia government. After the US was kicked out of Iraq (a really stupid move by Maliki and Iran), the Sunni population was marginalized by the Maliki government leading to the rise of al-Qaeda/ISIS which recruited from disaffected Sunnis.
What Turkey does is completely up to Turkey – not the US. In addition Russia has been supplying weapons to the illegitimate Assad regime (so where is your criticism?). Iran and Lebanon both are also propping up the murderer Assad supplying weapons, funding and manpower.
So yea, we are in a position to criticize Russia. Thanks for your response.
“Assad is solely responsible for creating the conditions in Syria by crushing a democracy movement …”
I think we should give the entire Middle-East the benefit of doubt regarding what we fondly call “Democracy”. Firstly, our own practice of democracy is highly flawed. Secondly, those guys in the Middle-East do like our style of democracy since it is against their religion. So instead of harping on them to get democratic is it not better that we get pragmatic and accept their frailties?
In any case, we will look rather hypocritical befriending all other countries there and elsewhere who care two hoots about democracy.
AQI didn’t arise after we were kicked out of Iraq, they were the opposition during the entire conflict, eventually moved to Syria, then simply changed their name after they had territory to plop down a caliphate. This was all the effect of the initial misguided regime change.
I would also point out that the supporters of the opposition in Syria were actively hoping for the rise of ISIS:
http://www.washingtonsblog.com/2015/05/newly-declassified-u-s-government-documents-the-west-supported-the-creation-of-isis.html
As for Russia providing weapons to Assad and Assad crushing a democracy movement, is the pot not calling the kettle black here? We have no problem selling weapons, including cluster bombs, to Saudi Arabia where political dissent gets you beheaded and your headless corpse crucified in the town square.
Yes, Assad is a dictator, but the rebels have been massively armed and funded by equally brutal dictators. Whatever pro-democracy voices were around at the start of this conflict have been long since drowned out and the alternatives to Assad now appear to be ISIS caliphate and/or Saudi puppet state. As in Iraq and Libya western efforts at removing dictators (only in strategically important countries of course) result in chaos.
What an utter joke usa_naziland is, its basically concocting reasons as usual too steal money from the nation. Into its death-culture & control efforts of the entire solar system..you may laugh & point at me as some sort of nutter. But the goal of these americunts is too be gate keepers to space & beyond. They do not care if there is no enemy, they will make one up. Just to gain more fucking funding the sadistic fuckwits & psychopaths.
The worlds nations will sigh relief when america is banished back to its own shores. Instead of bulling other nations & bribing everyone it feels has some powerful position. Or has been proven time & time again since the 1950’s. It creates the terrorists and overthrows democratically elected people because of its vile pernious EVIL plans.
This website is only playing catch-up to the bloody soaked path of usa_naziland. No doubt given enough time, even writters of this site will end up in a firery blown up merc like Micheal Hastings….remember him???
ps: The firefighters were not allowed to put the fire out for 6-hours, just to make sure teh cia_peado’s equipement & explosives were incinerated.
A lot of our expenditure is to secure the defenses of our strategic allies and partners and some other nations that can’t take care of themselves.
What a stupid thing to say. Defense has nothing to do with it.
Sorry to say that it is even not brought up here, at TI. If one took some time and do an overlay of where the precious dwindling resources are found globally…… does anyone get it yet??? Our pathetic government calls it collectively, “our national interests”. There, done and dusted.
Yes, TI is treating some rather nefarious individuals and organizations with tender loving care, under the guise of seeing both sides, for example. Personally, helping US Zersetsung goons continue their extra judicial murder campaigns with impunity is annoying. These muderers are NSA customers, and GG, among others, have evidence that could help us (targets), or at least provide obvious leads that jounalists who care more about justice and civil courage, rather than money and celebrity, would investigate. Even J. Applebaum, himself an obvious Zersetsung target, refuses to help any target but himself. It’s all so… American, isn’t it?
Zersetzung.
This is a spelling/typing test. The identity of the student is not yet known. It is either myself or a surveillance goon. I will continue giving them the benefit of the doubt, given the record of integrity within Stasi ranks.
Even while I was working as a technologist for what I then referred to as a “Defense” contractor, I wondered why, if we in the US are so much more technically competent and inventive than everyone else, should we have to outspend the next 20 or so nations in weapons spending. It does not make sense, does it? So I analyzed the situation, and came to the realization that the US weapons spending is politically motivated (contractors give money to candidates and receive rewards in the form of contracts) and based on the false premise that technology is the solution to every problem.
After the Vietnam defeat, weapons spending in the US decreased dramatically, causing the war industry to restructure itself, deliberately building facilities in all key Congressional districts. Then they could more effectively pressure against further cuts, by getting local politicians to help lobby Congress, equating cuts to job losses in their districts. An amazingly successful strategy, that plays on the provincial viewpoint of the electorate.
As for the technology point, allow me to illustrate with a current example. The US Army replaced the Jeep with the Humvee (HMMWV), at roughly three times the cost, to gain better mobility, payload and versatility. But in Afghanistan, Humvees ran into trouble when the Taliban started using rocket propelled grenades (RPGs), then improvised explosive devices (IEDs), mostly in the form of roadside bombs to attack them. First, the Army increased the armor (“up-armored”) the Humvees, raising their cost to $220,000 each. But that was not enough, because the Taliban response was simply to add another half kilo of explosive to the IEDs. So how did the Army respond to that? With the MRAP (Mine resistant ambush protected) vehicle, which cost upwards of $535,000 each, plus equipment. A fully equipped MRAP costs well over a million dollars, and guess what? Still vulnerable to IEDs. The IEDs contain enough explosive to literally lift the vehicle off the ground; it gets damaged and its occupants are wounded or killed when it comes back down. So for $50 worth of explosive, the Taliban could take out a $220,000 Humvee, and for another $50, they can take out a $1,000,000 Humvee. But still the Army does not get it.
To make matters even worse, you do not sneak up on anyone in an MRAP, and the vehicles are too wide to navigate most village streets. Moreover, they are not true all terrain vehicles and wind up being confined mostly to the roads if they are going to get anywhere in a reasonable amount of time, making the mining job easy.
What would I do? Instead of spending a million on an MRAP, I’d have bought 100 top of the line motocross motorcycles. Put the troops on them, and then with proper tactics the number of GIs wounded or killed by an IED goes down from 7 or 8 to one. Get the ability to move fast, everywhere. Run the bastards down, infiltrate, overrun. No problems with rough terrain or village streets. But it means less money for the war industry, so we can’t have that!
(Oh, by the way, I’d still buy a few Humvees and MRAPs for special purposes such as medevac or heavy weapons carriers. It would cut the cost by a factor of four, and increase our tactical capability.)
Better yet, I would pull all our troops out of the Middle East. And Europe.
Interesting comments, It’s actually gotten easier since ’76, when money was determined to be free speech, for them to completely manipulate our government with legal bribery. At this point the main cornerstone to all of the problems that don’t seem to make sense, is the fact the government is being bought by people/corporations (since corporations have been considered people with const. Rights here since ’78 anyway) to do those things.
I don’t get why my Comments flash up and vanish on Mr Fang’s pages…?
The US may spend more than China, but all too often with sensitive military tech they’re stuck buying American. I bet the Chinese get a lot more for their money.
The surprise to me in that graph was how far China is ahead of Russia already.
95% of the German weapons are exported, most of them to countries like Libya and Iraq. Terrorism is made in the west.
Almost makes you think the military and the spy agencies are actually the ones calling the shots and the elected government is nothing more than a front to maintain the illusion of democracy.
Nah, that’d never happen…..
Nah, imPOSSible!
quote”Almost makes you think the military and the spy agencies are actually the ones calling the shots and the elected government is nothing more than a front to maintain the illusion of democracy.”unquote
Bingo. Jim Garrison is probably smiling.
quote from an interview in 1967
“But in the final analysis, it’s based on power and on the inability to put human goals and human conscience above the dictates of the state. Its origins can be traced in the tremendous war machine we’ve built since 1945, the “military–industrial complex” that Eisenhower vainly warned us about, which now dominates every aspect of our life. The power of the states and Congress has gradually been abandoned to the Executive Department, because of war conditions; and we’ve seen the creation of an arrogant, swollen bureaucratic complex totally unfettered by the checks and balances of the Constitution. In a very real and terrifying sense, our Government is the CIA and the Pentagon, with Congress reduced to a debating society.” (snip)”unquote
The whole interview is here..and it’s mind boggling in it’s prophesy.
http://22november1963.org.uk/jim-garrison-political-views