The defence industry: same as it ever was?
Team Tempest at DSEI. The defence industry continues to implement platform-centric programmes, but these are increasingly fused with autonomy, data and AI. (Photo: Clarion)
As COVID-19 spread in 2020 and national lockdowns bludgeoned the global economy, many feared the worst for state finances. Jittery economists expected treasuries to react in a manner similar to the financial meltdown of 2008-2009, by slashing government budgets and implementing a raft of austerity measures.
Quite the opposite transpired. As zealous central banks hoovered up bonds and flooded markets with liquidity, governments loosened their spending taps. While cuts fell hard on defence budgets from 2009 to 2014, they gingerly benefited from government windfalls this time around.
Such is the largesse that even traditional laggards like Germany have committed to
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
Israel defence ministry pushes ambitious spending plans for tanks, drones and KC-46 aircraft
The procurement and acceleration production plans – some of which still await approval – across the air and land domains will aim to strengthen the operational needs of the Israel Defense Forces.
-
US reforms its defence acquisition system to focus on commercial capabilities
This shift is planned to accelerate the procurement and fielding of capabilities. As part of this strategy, the US also intends modernise its regulations in an attempt to change its bureaucratic and risk-averse culture.
-
Australia’s Exercise Talisman Sabre concludes after a series of firsts
More than 40,000 military personnel from 19 participating nations took part in the 11th iteration of the biennial Exercise Talisman Sabre multi-domain event which was held across Australia and in Papua New Guinea.
-
US Africa Command targets logistic solutions
AFRICOM is seeking IT systems and supply chain management solutions to enhance interoperability and standardise logistical processes in its area of responsibility.
-
Rheinmetall sales up by almost a quarter on wave of German spending
Germany’s Rheinmetall released its 1H 2025 results on 7 August, continuing the strong growth of recent years. A particular highlight of the result’s presentation was the Skyranger air defence system for which the company is predicting sales of about US$8.2 billion from the German Government before the end of the year.
-
Defence companies continue to ride procurement wave
Vehicle and technology companies are reporting substantial growth compared to the first half of 2024. Italy’s Fincantieri saw revenues jump 24% for the first half of the year compared to 2024 and Thales up 6.8% for the same period. General Dynamics reported second quarter revenue growth of 8.9% for the second quarter compared to last year and MilDef reported organic order intake growth of 58%.