ISRAEL AT WARUS weapon manufacturers expecting boost in sales from Israel
ISRAEL AT WAR
US weapon manufacturers expecting boost in sales from Israel
The U.S. will increase shipments of Iron Dome interceptor missiles and other weapons
American weapons manufacturers are preparing for a surge in demand from Israel. This is amid an already intense period, due to the ongoing war in Ukraine and demand from the Pentagon, according to a report in The Financial Times.
In contrast to Ukraine, which is receiving hundreds of tanks and armored vehicles, Israel is primarily interested in ammunition. Iron Dome missiles are particularly in demand, along with air-to-ground missiles and tank ammunition. However, as the war continues, analysts estimate that the IDF may also require missile systems currently in short supply in Ukraine, including armed drones and 155mm artillery shells.
Nevertheless, U.S. President Joe Biden has pledged to provide Israel and Ukraine with all the ammunition they need and insisted over the weekend that the United States can meet the demand and maintain the Pentagon's readiness for other contingencies, such as a potential conflict in Taiwan. "We're the United States of America for God's sake, the most powerful nation in history-- not in the world, in the history of the world," he said in a 60 Minutes interview. "We can take care of both of these and still maintain our overall international defense."
The war in Ukraine has forced the American arms industry to return its focus to traditional weapons needed in ground warfare, rather than advanced surveillance technology and counterterrorism systems. The industry also faced supply shortages and a labor force crunch after the COVID-19 pandemic. "If we send these weapons to Israel, we'll need to move more resources within the industry, probably faster than we thought," said Cynthia Cook from the Center for Strategic and International Studies at Harvard University.
Israel is a major consumer of American weapons, having purchased $53.5 billion worth of arms over the last two decades, including $6.5 billion in the five years leading up to 2022.
A senior U.S. official stated that they are "rapidly providing" additional resources to the IDF, including ammunition and equipment. In the United States, it was also announced that Iron Dome missile shipments to Israel would be increased. "Some of the Iron Dome missiles were taken from the U.S. stockpile and quickly transferred to Israel," said a senior official from the U.S. Department of Defense. "We will continue to monitor Iron Dome missiles to ensure that Israel has what it needs to protect its system and defend its citizens and cities." Accordingly, the U.S. estimates that Israel will need additional Iron Dome missiles beyond those included in the aid package.
Other requested American weapons include air-to-ground systems like JADM, Hellfire missiles, and SDB bombs. These are expected to be easier to supply due to significant investment in their production. Lockheed Martin manufactures Hellfire missiles, while Boeing produces JADM and SDB missiles. Share prices of Lockheed and other major Pentagon suppliers, such as Northrop Grumman, RTX, and General Dynamics, have risen sharply since Hamas’ attack on October 7th.
