As a direct result of ongoing operations in Afghanistan Oshkosh is currently under contract to deliver 8,079
M-ATVs, this worth in the region of $4.75 billion to the company. Photo credit Oshkosh
global defence spend has largely been unaffected by this economic downturn.
So by default, does this mean defence spending really is recession proof? The short sharp answer is probably ‘no’ it is more resistant than proof, but how resistant and just how close to ‘proof’ would ultimately depend on an individuals take on the definition of those two words, and the way in which the variety of massaged related statistics are presented, and ultimately interpreted.
Lies, damn lies, and then statistics…
According to the Stockholm
International Peace Research Institute (SIPRI), global military spending increased 45% over the last decade, while more recently the International Institute for Strategic Studies (IISS) said that in terms of its proportion to global GDP (Global Domestic Product), defence spending has recently remained steady — 2.56% of global GDP in 2008, compared to
2.6% in 2004. The IISS also stated the total amount of money spent on world defence budgets rose from $1.3 trillion to $1.55 trillion between 2006 and 2008, and likely continued to climb in 2009.
The SIPRI Yearbook 2009 breaks down global defence spend for 2008 as 41.5% (USA; others quote up to 48%), 5.8% (China), 4.5% (UK), 4.5% (France), 4% (Russia), 21.1% (next ten countries combined), 18.6% (ROW). Or simplified, 15 countries account for >80% of global defence spend, leaving the remaining 180 with the leftover <20%. This suggesting that with so much controlled by so few, defence spend (ultimately the industry) may not be quite as secure as it may previously have appeared to some. Figures published by IHS Jane’s suggest that of the world’s top ten defence spenders for 2010 (exact placing, even inclusion, will depend on source), Italy and Japan reduced expenditure slightly, while in real terms (inflation vs. increase) it could be
To date, and also as a result on ongoing deployed operations, Navistar has so far supplied the US military with a total of 7,494 MRAPs in three primary variants, MaxxPro, MaxxPro Plus and MaxxPro Dash. Photo credit Shaun Connors
G4 DEFENCE
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