US defence industry faces uncertainty despite production ‘boomlet’

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Orders surge but companies say sustainable growth needs longer-term funding

The US defence industry is enjoying a munitions “boomlet” thanks to jumbo aid packages for Ukraine, Israel and Taiwan, allowing it to better meet surging orders after years of declining demand. Aid bills for the three countries allocated nearly $13bn for boosting weapons production at the US’s five biggest defence groups — Lockheed Martin, RTX, Northrop Grumman, Boeing and General Dynamics — and their suppliers.

Northrop Grumman has tripled its production of rocket motors — which propel tactical missiles — in recent years, and chief executive Kathy Warden said the new funds will allow it to boost capacity further. Meanwhile, General Dynamics opened a new ammunition facility in Texas at the end of May, which chief executive Phebe Novakovic has said will increase production of sought-after 155mm ammunition rounds by 83 per cent.

 

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