Middle East Conflict Means Business is Booming for US Defense Contractors

Major weapons-manufactures are looking to make big gains as Middle Eastern governments seek to boost their defenses in the face of terror threats, civil wars and other turmoil across the region

As armed conflict and political unrest grows in the Middle East, major defense contractors are seeing it as a golden opportunity to supply their customers in battle. 

Tom Kennedy, chief executive of weapons-manufacturer Raytheon, says regional conflict provides “a significant uptick” for “defense solutions across the board in multiple countries in the Middle East.” 

Wilson Jones, president of Oshkosh, says the threat of Daesh, also known as ISIL or the Islamic State, in particular is making more countries interested in beefing up their defenses with Oshkosh’s M-ATV armored vehicles. 

Bruce Tanner, executive vice president of Lockheed Martin, cited “indirect benefits” from the war in Syria, where more US Special Forces will soon join the US-led coalition against Daesh. 

While speaking at a Credit Suisse conference in West Palm Beach this week, Tanner explained to investors that the Turkish military’s recent shooting of a Russian warplane has provided “an intangible lift because of the dynamics of that environment and our products in theater.” 

Tanner also said Russian intervention would raise the need for his company’s F-22s F-35 jets. He also stated the war in Yemen could trigger Saudi Arabia and the United Arab Emirates to increase their demand for “expendable” products such as rockets. 

The authorization of the latest US defense budget may also serve as a boost for contractors. 

Congress has authorized $607 billion in defense spending. Even though it comes $5 billion short of what the Pentagon had requested, Tanner assured investors that Lockheed Martin’s programs are “well supported” by the budget.