Defense Sector Responds to Tumultuous Times

Global defense industries are reacting in kind in an era marked by geopolitical tension. Production rates tell a story of preparation and response. Supply Chain Professor Jason Miller offers his take on LinkedIn.

Rising Tides in Germany:

• Recent data highlights an uptick in Germany's weapons and ammunition production.
• Why? Rheinmetall expands to support Ukraine amidst Russia's invasion.
• The surge? Production is up 60% since 2015 and still climbing.
• Global defense industries are reacting in kind in an era marked by geopolitical tension.

U.S. Ammo Production:

• The goal? Ramping up 155mm artillery shell production.
• Current production: 28,000/month.
• The ambition: A leap to 100,000 rounds/month, a significant rise from 14,000 post-Russia's Ukraine invasion.

Global Landscape:

• Western ammo reserves are thinning, and with ongoing conflicts in Ukraine and the Middle East, arms production's future looks busy.
• Spotlight: Poland's massive orders for HIMARs rocket launchers and guided multiple launch rockets. Why? They're proving effective in Ukrainian operations.
• U.S. military update: Out with the old ATACMS, replaced by the Precision Strike Missile.

The Big Takeaway:
For those in the business of components, chemicals, or other inputs with military applications, especially artillery shells and GMLRs, brace yourselves. Demand will soon mimic Cold War levels.

Source: Jason Miller / Linkedin