Friday, October 3, 2014

The War on ISIS

I highly recommend reading Tory Newmeyer's 9-13-14 Fortune Magazine article entitled "The War on ISIS Already Has A Winner:  The Defense Industry."  Here are some choice excerpts:

"It’s far too soon to tell how the American escalation in the sprawling, complex mess unfolding in Iraq and Syria will play out. But this much is clear: As our military machine hums into a higher gear, it will produce some winners in the defense industry.
"New fights mean new stuff, after all. And following the U.S. withdrawal from Iraq and Afghanistan—and the belt-tightening at the Pentagon imposed by steep budget cuts—military suppliers are lining up to meet a suddenly restored need for their wares […].
"'The drone builders are going to have a field day,' says Dov Zakheim, who served as Pentagon Comptroller during the George W. Bush administration. That could mean a tidy profit for privately held General Atomics, maker of the Predator drone, the granddaddy in the category and still widely in use, as well as the second-generation Reaper, designed to carry 3,000 pounds worth of bombs. And to help survey vast expanses of desert, the military will rely on the Global Hawk, made by Northrop Grumman to hover at altitudes as high as 50,000 feet for up to four days at a time. Those vehicles will likely be making use of the Gorgon Stare. This sensor, developed by privately held Sierra Nevada, is capable of scoping a 4-kilometer diameter by filming with nine cameras […].
"It is the munitions makers, however, who stand to reap the biggest windfall, especially in the short term. Topping that list is Lockheed Martin, producer of the Hellfire missile, a precision weapon that can be launched from multiple platforms, including Predator drones. Raytheon, which makes the Tomahawk, a long-range missile launched from the sea, and General Dynamics, which also has a munitions business, are also well-positioned, analysts say."
To read Newmeyer's entire article, click HERE.  

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