5:46 AM 1/25/2018 – Why General Dynamics Loves the Trump Military Buildup

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10:41 PM 1/24/2018 – Gaps remain in CIA’s understanding
Thu, 25 Jan 2018 04:43:14 +0100

10:41 PM 1/24/2018 – Gaps remain in CIA’s understanding

The National Interest

The National Interest from mikenova (1 sites)
The National Interest: Why General Dynamics Loves the Trump Military Buildup

Dave Majumdar

Security,

Froms subs to tanks the company is in a good position.

The rise of great power competitors to the United States might be a boon for Americas defense conglomerates. Companies like General Dynamics, which builds hardware ranging from Virginia and Columbia class nuclear-powered submarines to Abrams main battle tanks, could stand to benefit from renewed great power competition.

I have long said that I like the positioning of our platform, defense platform businesses because they tend to be somewhat countercyclical, Phebe N. Novakovic, Chairman and CEO General Dynamics, told investors. In a hot war, the tactical forces received the preponderance of the funding and that was true certainly in the hot wars of Iraq and Afghanistan. When we wind down from active intense conflict than the strategic forces, which in our case is the Navy, tend to receive more funding.

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Novakovics contention seems to be borne out in the Pentagons new National Defense Strategy and its spending patterns. What we have is a little bit of a combination of both that we need to grow the fleet for the obvious threats that weve in the North Atlantic and Pacific, and the Army needs to recapitalize based on — it’s had a number of years over a decade of the consumption of its material, but it needs to not only replace but upgrade that material and they put the money behind it, Novakovic said. So I like, I think, were well-balanced.

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The National Interest

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