What is worth noting is that the volume of FMS deals, when viewed in a five-year increment, certainly suggests an upward trend.” -Daniel YoonAaron Mehta of Defense News recently reported on foreign weapon sales by the US State Department, noting that in the last three months of 2016, the State Department approved 21 foreign sales cases worth an estimated total of $45.2 billion, roughly $12 billion more than all of fiscal year 2016. In order to establish if this trend of sales can be expected to keep pace in 2017 (which would beat the $68.6 billion record in total foreign weapons sales, set in 2012), Mehta spoke to Daniel Yoon, Senior Market Analyst and Doug Berenson, Managing Director of Avascent Analytics.
Yoon noted that while two big sales account for the majority of the $45.2 billion, the volume of foreign military sales, when viewed in five-year increments, suggests an upward trend. In addition, Yoon noted that as no country will come near the U.S. in the highest end of the market for at least another generation, fighter aircraft sales should remain in calculations when considering the success of American defense exports, even if they only come around once every handful of years. On the other hand, Doug Berenson added that the US needs to be aware of increasing competitiveness for foreign weapon sales: “The rest of the world is increasingly competitive. That includes more than just ‘the usual suspects’ like Russia, France, Germany, and the U.K. Firms in South Korea, Israel, Singapore, Turkey, Brazil and other countries are increasingly active in various sectors of the global defense market… Over time, they will make their presence felt even more strongly.”
To read the full article, click here: US on Track for Record Foreign Weapon Sales.