An MV-22 Osprey sits on the deck waiting for members of the 27th Infantry Brigade, 7th Iraqi Infantry Division and Marines with Military in Transition Team 0720 load up. Courtesy of Boeing
Clay Dillow, Fortune: U.S. companies are making a killing on foreign military sales
Ongoing tensions in Europe, Asia and the Middle East keep defense dollars flowing.
With violent conflict and geopolitical tension rampant across the globe, U.S. military contractors are finding willing buyers for their wares across Europe, the Middle East and Asia, even as legislative wrangling and the looming return of sequestration caps threaten defense budgets at home.
April saw the value of new foreign military sales jump three-fold over the same month a year ago, and May is off to a big start with some $3.5 billion in U.S. foreign military sales announced in the past week alone. Driven by regional unrest, foreign militaries are generally looking to upgrade their security forces with the latest systems that can give them a technological edge, says Guggenheim Securities defense analyst Roman Schweizer. The need for new security is pushing them towards U.S. defense contractors, who have what foreign militaries want.
WNU Editor: Here is an easy prediction .... this trend is only going to get better for these companies.
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