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Defense Sector Responds to Tumultuous Times
As geopolitical tensions rise, the defense sector's production mirrors a world bracing for conflict. U.S. and Germany ramp up arms production.
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.
- 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