2022 was a banner year for defense contractors. If turnout at this year’s International Defense Exhibit in Abu Dhabi is any indication, 2023 will continue the streak of record sales.
Defense Advancement IDEX 2023 Round-Up
Take a look: https://t.co/i6XVrKBdZj #defense #innovation #technology #tech #defence #defenceindustry #security #military #idex pic.twitter.com/1gxvTO9Z2g
— Defense Advancement (@DefenseAdvance) February 27, 2023
Visitors and exhibitors from 65 countries attracted around 130,000 people for the biennial defense fair. IDEX 2023 was the best attended event in years according to its organizers.
The United Arab Emirates alone signed defense contracts totaling over $6 billion at IDEX. According to CNBC, many of the contractors said the war in Ukraine spurred nations to beef up defense spending. One American contractor even called Russian President Vladimir Putin “the best weapons salesman there is.”
Raytheon Technologies and Lockheed Martin are the two largest American defense contractors. Raytheon manufacturers the PATRIOT missile defense system. Lockheed Martin makes HIMARS. Both systems are in high demand in Ukraine, which is leading to an order backlog as NATO allies look to replenish their own supplies.
The combat-proven #Patriot is the world's most advanced air and #missiledefense system. It can detect, identify and defeat ballistic missiles, cruise missiles, #drones and advanced aircraft. Learn more: https://t.co/jzXcQsVTnr pic.twitter.com/twD0cyu2hy
— Raytheon Missiles & Defense (@RaytheonDefense) January 25, 2023
Lockheed Martin recorded $19 billion in fourth quarter sales last fiscal year. Raytheon had $4.1 billion in the fourth quarter, but its order backlog totals more than $150 billion.
Across the globe, countries spent more on defense in 2022 than ever before. Germany, Poland, and France all implemented massive defense spending budgets worth billions to counter Russia’s growing threat.
Days after Russia invaded Ukraine, Germany announced it would spend an additional $106 billion on defense. Poland raised defense spending to 3% of GDP, and France’s government said it will increase defense spending by 30% over the next few years.
Japan is raising its defense spending to 2% of GDP by 2027 to counter threats from China and North Korea. Both China and Russia said their military budgets are also getting bigger. Russia increased its planned 2023 defense budget by 40%, bringing it to roughly $84 billion.
Of course, this all pales in comparison to the amount the U.S. spends on defense. When President Joe Biden signed the 2023 National Defense Authorization Act in December, he approved allotting more than $816 billion to the Department of Defense.
