The FMS process is complex, supports thousands of transactions, and is not driven by immediate end-customer demand alone – process, US policy, geostrategic developments, funding and other drivers come into play.”On October 18, Defense News discussed challenges to the U.S. Foreign Military Sales process with Avascent Principal Aleksandar Jovovic.
One key indicator of the health of the US aerospace and defense sector, foreign military sales, rose to a record high of $46.6 billion for fiscal 2015, but US officials are warning of a dip in sales next year. The 2015 FMS increase was linked to the war against the Islamic State, according to the chief of the Pentagon agency charged with shepherding those sales. However, FMS typically has an inverse relationship to OPEC oil prices, and defense officials expect falling oil prices and international defense budgets to spark a decline in their sales for fiscal 2016. Defense Security Cooperation Agency (DSCA) director Vice Adm. Joseph Rixey said that 2015 was the agency’s biggest year yet, outside of a 2012 boost from F-15 fighter jet sales to Saudi Arabia. DSCA processed $34.2 billion in sales in 2014, and $27.8 in 2013.
Click here to read the full piece: “Pentagon Agency Handled Record Foreign Arms Sales in 2015.”