The profits of the U.S. defense industry have quadrupled since 2001 – Exports lifesaver for U.S. defense contractors

Gulf arms sales vital for U.S. companies
Nov. 15, 2011 – UPI

DUBAI, United Arab Emirates, Nov. 15 (UPI) — The Pentagon’s reported plan to sell the United Arab Emirates nearly 5,000 bunker-buster bombs to counter Iran is part of a move to strengthen Arab monarchies of the Persian Gulf as the U.S. withdrawal from Iraq nears completion.

But it’s also a lifesaver for U.S. defense contractors who’re having to rely on exports to keep assembly lines running because of hefty cuts in military spending at home after the feeding frenzy of the post-Sept. 11 era.

“The defense industry is coming to the end of what many of its senior figures regard as a golden decade,” The Financial Times reported in a September assessment of the sector.

“Ten years ago, in the immediate aftermath of the Sept. 11 attacks, the U.S. government began a huge injection of cash into the Pentagon budget.

“Over the course of the decade, the U.S. annual defense budget has doubled in cash terms to reach nearly $700 billion in 2010.

“The profits of the U.S. defense industry have quadrupled over that period,” the FT reported. “The country has come to dwarf all other nations in the amount it spends on military equipment.

“Now, however, the tap has been turned off and defense companies in the United States — as well as in Europe — face more challenging times.

“Some senior executive in the industry believe Congress will take out up to $1,000 billion from the core Pentagon budget over the next decade,” the business daily said.
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