Capital Economy, Business and Finance
Israeli defence exports hit a record high of $13 billion last year, as international buyers paid witness to the deadly efficacy of the country’s missiles and air defence systems. But Israeli companies aren’t the only beneficiaries from a global boom in arms sales. The three largest US contractors – Lockheed Martin, Northrop Grumman and General Dynamics – are on a hiring spree, with close to 6,000 job openings needing to be filled. UK contractor Chemring, a FTSE 250 company, has doubled the size of its orderbook since 2021 and is signing contracts that extend to 2031. Demand from governments is strong, with global military expenditure increasing by 6.8 per cent in 2023. Earlier this year, the UK Treasury said that “investing in good, high-quality, well-run defence companies is compatible with ESG considerations”. With the caveat that one person’s defence of democracy is another’s alleged war crime, it was an interesting comment on troubled times.
