U.S. Military Contractors Spend Big Amid Defense Demand

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Boeing, Lockheed Martin and other military contractors have signed a wealth of multi-billion-dollar deals in recent months, as the Iran War drives the development of drones, missiles, aircraft and shipyards.

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Subs, Drones and the Latest Jets

Amid the ongoing U.S.-led war with Iran, The Boeing Company, Lockheed Martin Corporation, RTX Corporation and other top military contractors have signed a flurry of multi-billion-dollar deals in recent months for the development of drones, missiles, aircraft and shipyards. Industrial Info Resources is tracking nearly $12 billion worth of active and proposed military-related projects from these contractors, including more than $5 billion worth nearing or under construction in the U.S.

According to Industrial Info Resources data, Anduril Industries Incorporated accounts for more related investment on defense-oriented projects than any other parent company. That's not surprising, given the company signed a $2.9 billion contract earlier this month with the U.S. Navy to boost submarine production.

Following the contract win, Anduril confirmed it would invest as much as $3.7 billion to construct its long-planned Arsenal 2 shipyard in Sparrows Point, Maryland, on the shores of Chesapeake Bay. The company says the complex will produce critical parts for the Navy's nuclear-powered Virginia-Class submarines by the end of 2030.

Industrial Info Resources offers more information on Arsenal 2 in its Global Market Intelligence (GMI) Industrial Manufacturing Plant and Project databases, where subscribers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

The contract follows Andruil's recent announcement that it would expand production at its Arsenal 1 plant in Lockbourne, Ohio, where it develops military drones and autonomous air vehicles. The company seeks to boost output of its ALTIUS 600 autonomous drone, which it says can be launched from the ground, air or sea. Subscribers can learn more from a plant profile and a detailed project report.

Boeing is benefiting from the U.S. Navy's demand for more F/A-XX strike fighter jets, which are replacing the F/A-18 Super Hornet model, when is signed a contract last month valued at more than $20 billion. Accordingly, Boeing is in the years-long process of expanding its aircraft plant in Berkeley, Missouri, which is just northwest of St. Louis; the plant also produces the F-15 Eagle Crest jet, for which Boeing signed a $131.23 billion contract in August. Subscribers can consult a plant profile and a detailed project report.

By the Numbers

• Nearly $12 billion: Total value of military-related projects from these contractors who have received recent contract wins
• More than $150 billion: Total value of Boeing's recent contracts for F/A-XX and F-15 Eagle Crest jets
• More than $58 billion: Total value of Lockheed Martin's two multi-year contracts for its PAC-3 MSE interceptors

Missiles with More Muscle

While drones have been the focus of much attention from the DOD, demand is growing for a wide variety of missiles. Lockheed Martin has secured more than $58 billion from two multi-year contracts for its PAC-3 Missile Segment Enhancement (MSE) interceptors, which have been used extensively in the U.S.-Israeli war with Iran. The company is planning to expand its plant in East Camden, Arkansas, to boost production from 620 to 2,000 MSE interceptors per year. Subscribers can consult a plant profile and a detailed project report.

Jim Taiclet, the chief executive officer of Lockheed Martin, said in the company's most recent earnings-related conference call that Lockheed Martin is exploring the development of a "lower-capability, lower-cost PAC-3 missile" for short range operations: "The PAC-3 MSE can hit long-range, high-speed, almost intercontinental ballistic missiles. It can also defeat hypersonic missiles, and that's been demonstrated in Europe."

Other companies to pick up missile-related contract wins this year from the DOD include RTX, whose subsidiary Raytheon Missiles & Defense signed a $441.6 million deal to boost its production of its Patriot Guidance Enhanced Missile-TBM (GEM-T) model. The company is expanding production at its plant in Portsmouth, Rhode Island, where it also is planning to build a testing range for missile sensors. Subscribers can learn more from a plant profile and a detailed project report.

Chris Calio, the chief executive officer of RTX, said in a recent earnings call that his company had booked nearly $20 billion of awards in the second quarter, which "included over $5 billion of GEM-T Patriot effectors, driven by international customers and our first domestic GEM-T production order in over 30 years."

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a list of reports for active and proposed military-related projects from companies to win recently awarded contracts.

Key Takeaways

• Top U.S. military contractors have signed a flurry of multi-billion-dollar deals in recent months.
• Boeing is benefiting from the U.S. Navy's demand for more F/A-XX and F-15 Eagle Crest jets.
• While drones have been the focus of much attention from the DOD, demand is growing for a wide variety of missiles.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).