U.S Defense Companies Stand To Gain From Iraq And Syrian War

The American defense manufacturing companies appear to be benefitting from US led air-strikes in Iraq and Syria against Islamic State.

Bloomberg in September just before airstrikes in Syria reported defense firms Lockheed Martin, Northrop, Raytheon and General Dynamics Corporation are all set to trade at record prices.

With only days into the Syrian war, Investors anticipate rising sales for precision-guided missiles and bombs, and other high-priced weapons, as well as surveillance and reconnaissance equipment, which further signals more business to the defense manufacturers.

The recent wars rely heavily on equipments rather than a ground force. The US would look at intensified airstrikes to keep American troops away from the danger on the ground. The Defense Department estimated that it spent nearly $325 million on procuring close to 200 missiles manufactured by Raytheon, (Tomahawk Land Attack Missiles) for 2015.

The U.S has used a mix of Tomahawk missiles, F-22, F-15, F-16 and F-18 jets dropping precision-guided missiles in the Syrian war.

F-22 Raptor by Lockheed Martin made a combat debut in Syria which costs over $68,000 per hour to operate. Other prices of weapons such as sidewinder missiles, small diameter bombs cost an additional $600,000 and $250,000 each. The Hellfire missile, a precision weapon can be launched from multiple platforms that include Predator drones (General Atomics).

In a report by defense think tank CSBA, it predicts the cost to range between $200 million to $300 million a month if U.S continues moderate airstrikes in both Syria and Iraq.