The United States spends approximately $840 billion annually on its military defense. The entire industrial support network surely adds to this enormous number. This makes up over 13% of the entire federal budget. This level of spending is set to increase by 10% in the next decade (adjusted for inflation). We need to be ready to do more.
Providing our warfighters with advanced aircraft, ships, space and cyber technology, and ensuring global support for our personnel require substantial resources. China spends approximately $240 billion and is increasing its spending at an estimated 8% each year. Meanwhile, NATO countries are spending more than they have in decades because of the Ukrainian conflict, and their rate of defense expenditures are expected to continue increasing.
In economic development circles, the conversation about this subject usually revolves around employing veterans and supporting military base communities. These are great topics and deserve much attention. Building up our military to protect the United States and our allies is vital, and doing so requires a manufacturing supply chain the equal of any industry. In fact, we must continue funding academic research, manufacturing semiconductors domestically for military use, securing critical assets like data, and supporting our service members both on duty and in their post-service lives.
Let’s have a great week, lift each other up, honor the veterans among us and overseas, and move forward together!