The Democrats took control of the U.S. House of Representatives following Tuesday’s midterm elections, setting the stage for what could be a prolonged battle over defense spending and policy. The Pentagon’s topline was already facing cuts recently announced by the Trump administration, but the change in power in the House will give Democrats momentum as they push for increased domestic spending.
Lockheed Martin has been awarded a contract worth up to $480 million for the conduct of a Critical Design Review and to provide test and production readiness support for the U.S. Air Force’s Air-Launched Rapid Response Weapon (ARRW, pronounced “Arrow”), one of the service’s ongoing hypersonic weapon development efforts. The Air Force is obligating $5 million at time of award. Contract work will be performed in Orlando, Florida, and is expected to be completed by November 30, 2021. Continue reading
Andrés Manuel López Obrador won a resounding victory in Mexico’s presidential elections held on June 30. With about two-thirds of the vote counted, López Obrador has over 20 million votes, or about 53.3 percent of the total. His next closest competitor, Ricardo Anaya Cortés, has only 22.5 percent, while José Antonio Meade Kuribreña of the ruling PRI Party has only 16 percent. Continue reading
The U.S. House of Representatives recently passed its version of the FY19 defense authorization bill by a vote of 351-66. The bill supports a Pentagon base budget of $639.1 billion, which complies with the two-year budget deal agreed upon earlier this year that amended national security spending caps in FY18 and FY19. This base spending includes $617.1 billion for the Pentagon, $21.8 billion for nuclear programs in the Department of Energy, and $214 million for other defense-related activities. The bill recommends $69 billion for Overseas Contingency Operations (OCO), matching the request, for a total of $708.1 billion in discretionary defense spending in FY19. Continue reading
The first annual Global Defense Snapshot by Forecast International’s International Military Market (IMM) group indicates continued growth in the worldwide market following relatively flat investment over the course of the 2015-2016 periods. An increasingly multi-polar global security environment buffeted by healthy economies and ongoing military modernization cycles contributed to a 3.3 percent year-on-year rise in consolidated worldwide defense spending for 2017. Continue reading
The U.S. State Department has approved the sale of 18 F/A-18E/F Super Hornets and associated equipment to Canada as part of a potential deal worth $5.23 billion, according to a September 12 announcement from the U.S. Defense Security Cooperation Agency (DSCA). The announcement outlines the potential sale of 10 F/A-18Es, eight F/A-18Fs, eight F414-GE-400 engine spares, APG-79 radars, 100 AIM-9X-2 Sidewinder Block II missiles, 30 AIM-9X-2 Sidewinder Block II Captive Air Training Missiles, and eight AIM-9X-2 Sidewinder Block II Special Air Training Missiles, as well as additional avionics and electronics. Continue reading
by Edward Nebinger, Forecast International.
Recent reports of significant layoffs by Boeing have proven to be of little concern to Wall Street investors, who shrugged those actions off as an efficiency move. Not only that, Boeing stock rose dramatically to a new high last week, and during a two-day period jumped 28 points, sending the Dow Jones Average to a new all-time high. Continue reading
As defense markets continue to adapt to dynamic economic and political forces, the major players continue to hold their entrenched positions.
Regional turmoil in parts of the Middle East, Europe and Asia continue to drive the need for more spending. Further, international sales for many firms are set to expand, driven by fear over the Islamic State (also known as ISIS), a more bellicose Russia, and regional pressures from China and North Korea. Continue reading
With commercial aviation production continuing apace, Rockwell Collins decided it wanted a bigger slice of the pie and expanded its operations with the $8.3 billion purchase of cabin interiors specialist B/E Aerospace. As a result, Rockwell is now an $8 billion company, employing some 30,000 people and commanding a diverse content base on a variety of commercial and business aircraft. Continue reading
The Pentagon’s FY17 budget was signed into law on May 5, more than halfway through the fiscal year. The legislation couldn’t come soon enough, as the military has been operating under a series of three continuing resolutions that funded the department at FY16 levels. CRs bring with them a host of difficulties, including restrictions on launching new programs, and leave many existing programs overfunded or unfunded. The Pentagon has become quite adept at navigating CRs, which have sadly become the norm in Washington. However, this year’s scenario was particularly troubling, as CRs in recent years haven’t lasted more than a few months. Continue reading