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Which Companies Will Benefit Most From Modernization Of The U.S. Nuclear Arsenal?

Loren Thompson, Forbes, 2 Oct 23

The U.S. government has embarked upon the first comprehensive modernization of its strategic nuclear arsenal since the Cold War ended three decades ago. The Department of Defense is simultaneously developing a new generation of ballistic-missile submarines, land-based intercontinental ballistic missiles, and long-range bombers.

Collectively, these three systems are referred to as the strategic “triad.” Every nuclear posture review conducted by the government since the Soviet Union collapsed—there have been five counting Biden’s—has endorsed the triad as the best approach to assuring nuclear deterrence.

During the Cold War, each leg of the triad was periodically modernized. However, with the waning of the Soviet threat, improvement slowed. As a result, the nuclear arsenal has aged markedly. With great-power competition now restored to prominence in the nation’s defense strategy, the deterrent is overdue for revitalization.

The most recent authoritative estimate of nuclear-weapons costs, produced by the Congressional Budget Office in July, projects that the Department of Defense and Department of Energy will spend $247 billion during the ten years ending in 2032 to modernize the nuclear force.

An even larger amount will be allocated in subsequent years, delivering revenues to hundreds of companies. For instance, industrial conglomerate TextronTXT -1.1% will provide reentry-vehicle technology for carrying nuclear warheads, and BoeingBA -2% hopes to build a successor to the E-4B flying command post (popularly known as the Doomsday plane).

However, four companies are poised to dominate modernization of the nuclear arsenal, each of them ultimately realizing tens of billions of dollars in sales.

Like General Dynamics, Lockheed Martin contributes to my think tank.

RTX will also provide the engines for the B-21 bomber through its Pratt & Whitney unit, and much of the onboard electronics for the bomber through its Collins Aerospace unit. All three business units of RTX are thus deeply involved in nuclear modernization. RTX too contributes to my think tank. 7 https://www.forbes.com/sites/lorenthompson/2023/10/02/which-companies-will-benefit-most-from-modernization-of-the-us-nuclear-arsenal/?sh=7d9aa3892003

October 3, 2023 - Posted by Christina Macpherson | business and costs, USA, weapons and war