Aug. 17, 2016
Defense is a Growth Market, It’s Sad to Say
No matter who wins the election in November, government military spending will almost surely increase, say the experts. It’s a sad commentary on the state of global affairs, but a positive for suppliers of metal products to the defense industries.
Heightened political tensions in Asia and the Middle East, and atrocities by radical terrorists around the world, have brought a new sense of urgency to government spending on security. Countries around the world are poised to increase their defense budgets, including the United States, which already accounts for about 39 percent of all military spending worldwide. U.S. defense spending is forecast to increase by 2-3 percent annually for the foreseeable future. Demand for metals used by the military will only intensify as threats to the U.S. seem more imminent.
Much of the spending on the latest innovations will involve high-tech electronics or alternative materials such as those used in fighter jets and drones, not necessarily steel and aluminum for new ships, planes and tanks. On the other hand, some of the spending by foreign nations will be directed at acquiring materials and technologies produced by American companies.
What’s the biggest market for brass today? Bullets. And not just for the military. Violence in the headlines, from street gangs to terrorists, has prompted millions of private citizens to arm themselves for protection.
Fair or not, the next president’s legacy will be determined by his or her ability to make the nation safer. “Not by choice but by circumstances, either candidate will likely spend more on defense than the current administration,” says Jerry Bashir of Falcon Aerospace.
Look for more from Bashir and other experts in the defense market report in the September print edition of Metal Center News.