US defense sector sees increased demand for weapons, including F-35 fighter jets

As Russia’s invasion of Ukraine is entering its third year, the future of additional military aid for Kyiv remains uncertain. But Ukraine supporters are trying to persuade that helping it will benefit the US economy.

In an interview on Wednesday, the director of the White House National Economic Council emphasized “how important that funding is for employment and production around the country,” while referring to Ukraine. Recently, German Defense Minister Boris Pistorius also urged American lawmakers to approve additional aid for Kyiv stalled in Congress. He told Bloomberg that providing arms and ammunition to Kyiv will help defense contractors.

Defense industry boom
Since the war in Ukraine, the US defense sector has experienced a surge in orders for weapons and munitions. Federal Reserve data indicates a 17.5% rise in industrial production within the US defense and space sector since the onset of the conflict. This surge not only strengthens national security, but also serves as a driving force behind job creation and foreign investment.

According to the Biden administration, out of the $61 billion earmarked for Ukraine, 64% would flow back to US defense contractors.

The surge is also fueled by European allies seeking to bolster their military capabilities amid regional instability.

Poland allocated $30 billion for Apache helicopters, Himars, M1A1 Abrams tanks and other equipment. Meanwhile, Germany’s investment stands at $8.5 billion for Chinook helicopters.

The Czech Republic has committed $5.6 billion for F-35 jets and accompanying munitions.

Moreover, the disruption to Europe’s energy supply, stemming from the cutoff of Russian gas, has amplified demand for US liquefied natural gas, further boosting the American economy.

It remains to be seen if the House will pass the $95 billion aid package, facing opposition from Republican allies of former President Donald Trump. 

Among their objections, they argue that the US can't afford to support Kyiv due to too much debt. They emphasize the need to bolster domestic security before providing aid overseas.