Daily Archives: August 31, 2016

The Rocket Greed

Promotional Picture of MBDA Sea Ceptor. image from wikipedia

Missiles excite, for unlike other weapons, demand for them is growing strongly. Global defence spending grew by just 1% in 2015—after five years of severe budget cuts in many countries—but the global market for missiles and missile-defence systems is racing ahead at around 5% a year. The capabilities of such weapons are increasing, and with that their price and profitability. Missiles are no longer just flying bombs; they now often contain more computer than explosive to help find their target autonomously…

Executives [of weapon companies] are putting missiles at the forefront of their efforts to expand abroad and to reduce their reliance on home governments.… The most go-ahead so far has been MBDA, a European joint venture, which last year won more missile orders outside Europe than within its home continent. Others are now catching up on foreign sales. Raytheon hopes soon to sign a $5.6 billion deal with Poland to upgrade its Patriot missile-defence shield, while Lockheed and MBDA plan to ink a deal with Germany for their air-defence systems.

[M]issile divisions at Western firms are facing more competition from Chinese, Israeli and Russian firms in some export markets….

Excerpts from Defence Firms: Rocketing Around the World, Economist, July 16, 2016, at 56