The West is rearming - why are American arms manufacturers only conditionally benefiting from this?
There are still doubts about how quickly the arms companies can increase their production. It is also unclear whether the Democrats will support Trump's rearmament plans if they take over the majority in the Capitol.
US defense companies, particularly Lockheed Martin, are trying to boost production amid high demand for military equipment. Lockheed Martin reported a record $292 billion in orders and a quarterly profit of $1.85 billion, exceeding expectations. The company has signed a 10-year deal with the Pentagon to produce 850 F-35 jets, allowing it to increase production to 156 aircraft per year.
The deal includes incentives for Lockheed Martin to produce efficiently and provides stability in case of changes in government or funding. The US defense industry is experiencing a surge in orders, driven by conflicts in the Middle East, Africa, and Ukraine, and plans by President Donald Trump to increase the defense budget to $1.5 trillion.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
