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Major Military Programs From 2003, forward Est. Total Cost Weapons System Type Prime Contractor Life Cycle Phase (Mil. $) F-35 Joint Strike Fighter Fighter Jet Lockheed Martin Developmental 148,400 V-22 Osprey Hybrid Helicopter/ Aircraft Transport Plane Boeing/Textron Developmental 20,100 Future Combat Systems Network-linked armored vehicles Boeing Developmental 92,000 Globalhawk Unmanned Reconnaissance Northrop Grumman Developmental 2,350 Missile Defense Missiles/Electronic Systems Systems Boeing, Lockheed M. Developmental 50,000 Northrop Grumman, Raytheon F/A -22 Fighter Fighter/Bomber Lockheed Martin Low-Rate Prod. 49,500 F/A-18 E/F Super Hornet Fighter Jet Boeing In-Production 35,700 F-15 Fighter/Bomber Boeing Mature In-Prod. N/A F-16 Fighter Jet Lockheed Martin Mature In-Prod. N/A
Weapons Systems Army Weapons Sytems Weapon Entered Manufacturer Army Individual & Crew-Served M-9 Pistol 1990 Beretta USA Weapons & Equipment Aircraft Black Hawk 1979 United Technologies (Stratford, CT) Helicopter General Electric (Lynn, MA) Air Defense Artillery Avenger 1989 Boeing (Huntsville, AL) AM General (South Bend, IN) Antiarmor Weapons Javelin 1996 A joint venture between Raytheon (Tuscon, AZ and Lockheed Martin (Orlando, FL) Indirect Fire Systems MLRS 1983 Lockheed Martin (Dallas, TX) Nuclear, Biol. & Chem. Nuclear, Biol. & Chem. 1998 General Dynamics Land Systems (NBC) Defense Equipment Reconnaissance System (Detroit, MI; Anniston, AL) M93/M93A1 Henschel Wehrtechnik, Kassel, Germany Tracked Vehicles Abrams 1980 General Dynamics (Sterling Heights, MI Warren, MI; Muskegon, MI; Scranton, PA; Lima, OH; Tallahassee, FL) Wheeled Vehicles HEMTT 1982 Oshkosh Truck (Oshkosh, WI)
DARPA Research, Development, Test & Eval Program Defense Advanced Research FY 2003 FY 2004 FY 2005 Projects Agency - Programs ($) ($) ($) Defense Research Sciences 171,383 139,434 143,729 Biological Warfare Defense 157,861 149,105 147,533 Advanced Aerospace Systems 242,095 315,941 361,067 Sensor and Guidance Technology 216,052 336,658 337,117 Land Warfare Technology 164,634 81,513 63,121
Value of Arms Transfer Deliveries Cumulative 1997-1999 Supplier Total U.S. U.K. France Russia Germany China Recipient Mil., ($) Mil., ($) Mil., ($) Mil., ($) Mil., ($) Mil., ($) Mil., ($) World Total 155,120 91,485 15,735 15,720 7,950 4,535 1,990 Developed Countries 83,855 60,830 2,270 9,050 1,315 3,510 10 Developing Counties 71,265 30,655 13,465 6,670 6,635 1,025 1,980 OPEC 41,200 17,860 12,055 5,105 1,370 20 505 NATO 36,320 26,215 2,080 1,010 545 2,000 150
FY 2002 Authorized Defense Articles Authorized Weapon Sales by the U.S. License Value Country total, ($) Australia 537,458,921 Austria 9,172,181 Bulgaria 13,259,970 Canada 637,593,317 China 141,180 Colombia 66,572,148 Czech Republic 13,296,433 Egypt 517,353,149 Greece 370,596,230 Hong Kong 99,227,517 France 235,452,172 Germany 517,353,149 Hungary 1,009,405 Israel 990,227,404 Japan 3,046,914,144 Russia 10,842,509 Saudi Arabia 89,896,558 Turkey 311,306,638 UK 2,554,497,094
Expenditures in Billion of Dollars Annually Appropriated (or Discretionary) Programs Defense, Homeland Security, Domestic Programs other than and International Affairs* Homeland Security Adjusted for Adjusted for Expenditures ($) Inflation in2004, ($) Expenditures ($) Inflation in 2004, ($) 2001 337 356 312 329 2002 396 412 339 352 2003 460 467 364 370 2004 512 512 384 384 *This Category includes Expenditures for the Reconstruction of New York
Funding Levels: Appropriated Programs Changes, measured as a Share of the Economy 2001 2002 2003 2004 Defense, International Affairs, Domestic Programs other than Total, and Homeland Security*, as a Homeland Security, as a as a Share Share of GDP, (%) Share of GDP, (%) of GDP, (%) 3.42 3.36 6.79 4.29 3.50 7.80 4.75 3.53 8.28 4.66 3.42 8.09 *This Category includes Expenditures for the Reconstruction in New York
U.S. Aerospace & Defense Companies Ranked by Current Market Cap Name SIC Code State Current Market Cap Total Assets Sales Growth UNITED TECHNOLOGIES CORP 3724 CT 46,001,810,000 34,648.00 9.80 BOEING CO 3721 IL 33,075,379,990 53,035.00-6.61 LOCKHEED MARTIN CORP 3721 MD 21,266,860,000 26,175.00 19.74 GENERAL DYNAMICS CORP 3720 VA 18,348,570,000 16,183.00 20.16 NORTHROP GRUMMAN CORP 3721 CA 18,216,880,000 33,009.00 52.31 RAYTHEON COMPANY 3812 MA 13,280,000,000 23,668.00 8.05 ROCKWELL COLLINS INC. 3663 IA 5,748,515,000 2,591.00 2.01 GOODRICH CORP 3728 NC 3,367,938,000 5,889.90 15.08 ALLIANT TECHSYSTEMS INC 3483 MN 2,246,677,000 2,479.26 20.57 UNITED DEFENSE INDS INC 3790 VA 1,739,819,000 1,591.16 18.97 TITAN CORP 3663 CA 1,615,152,000 1,290.63 27.50 ARMOR HOLDINGS INC 3842 FL 959,044,400 585.63 19.68 CURTISS-WRIGHT CORP 3590 NJ 975,281,700 973.66 45.35
U.S. Aircraft Orders & Deliveries Regional Narrow-Wide- Regional Narrow- Wide- Jets Body Body Total Jets Body Body Total F2012 362 480 282 1,124 271 494 305 1,070 F2011 396 505 301 1,202 278 519 310 1,107 F2010 388 580 303 1,271 276 525 291 1,092 F2009 365 570 281 1,216 302 558 272 1,132 F2008 326 559 287 1,172 295 545 249 1,089 F2007 293 500 254 1,047 282 494 214 990 F2006 254 442 224 920 290 437 178 905 F2005 226 368 211 805 282 370 148 800 F2004 197 333 173 703 264 375 138 777 F2003 160 222 120 502 288 402 141 831 E2002 (77) 357 88 368 306 492 158 956 2001 292 216 247 755 339 636 201 1,176 2000 714 821 268 1,803 307 613 197 1,117 F-Forecast, E-Estimate
Leading Global Defense Contractors Ranked by Defense Revenues, (Mio, $) 2002 Revenues Mil, $ Defense as Defense Total % of Total 1. Lockheed Martin 23,337 26,578 87.80 2. Boeing 22,033 54,000 40.80 3. Raytheon 15,291 16,760 91.20 4. BAE Systems 15,036 19,485 77.20 5. Northrop Grumman 12,178 17,206 70.80 6. General Dynamics 9,800 13,800 71.00 7. Thales 7,653 11,636 65.80 8. EADS 6,290 31,344 20.10 9. Finmeccanica 3,894 8,133 47.90 10. Honeywell 3,800 24,000 15.80 11. United Technologies 3,600 28,200 12.80 12. L-3 Communications 3,581 4,011 89.30 13. Science Applications Intern. 3,045 5,903 51.60 14. Mitsubishi Heavy Industries 2,903 21,646 13.40 15. General Electric Co. 2,800 131,698 2.10
Nuclear Weapons Capability Acknowleded Unacknowledged Seeking Abandoned Britain Israel Iran South Africa China North Korea Belarus France Kazakhstan India Ukraine Pakistan Russia United States
Share of U.S. Overseas Stationing Costs Paid by Selected Allies, 2000 Percentage Contribution ($, Mio.) Saudi Arabia 80 63 Japan 79 5,003 Kuwait 47 245 Qatar 47 11 Republic of Korea 42 796 Oman 40 19 Italy 37 364 Other NATO 22 349 Germany 21 1,211 Bahrain 18 21
U.S. Stationed Military Personnel & Bilateral Cost Sharing
U.S. Stationed Military Personnel & Bilateral Cost Sharing, NATO, Dec. 2000 U.S. Stationed Bilateral Cost Military Personnel Sharing, ($, Mil.) Belgium 1,574 49.2 Canada 161 NA Czech Republic 14 NA Denmark 25 0.1 France 65 NA Germany 70,126 1,211.3 Greece 696 19.5 Hungary 373 4.2 Italy 11,348 364.2 Luxembourg 6 15.8 Netherlands 673 0.0 Norway 77 6.2 Poland 17 NA Portugal 994 0.9 Spain 1,945 115.3 Turkey 2,059 4.7 United Kingdom 11,170 132.9
U.S. Stationed Military Personnel & Bilateral Cost Sharing, Dec. 2000 U.S. Stationed Bilateral Cost Pacific Allies Military Personnel Sharing, ($, Mil.) Japan 40,025 5,003.19 Republic of Korea 36,171 796.28
U.S. Stationed Military Personnel & Bilateral Cost Sharing, Dec. 2000 Gulf Cooperation U.S. Stationed Bilateral Cost Council (GCC) Military Personnel Sharing, ($, Mil.) Bahrain 1,433 21.0 Kuwait 4,527 245.2 Oman 199 18.5 Qatar 53 11.0 Saudi Arabia 5,176 63.0 United Arab Emirates 425 13.3
Largest Armed Forces 2003 Estimated Active Forces Army Navy Air Total China 1,700,000 220,000 420,000 2,340,000 US 471,700 370,700 353,600 1,365,800 * India 1,100,000 53,000 150,000 1,303,000 North Korea 950,000 46,000 86,000 1,082,000 Russia 348,000 171,500 184,600 1,004,100** South Korea 560,000 60,000 63,000 683,000 Pakistan 550,000 22,000 40,000 612,000 Turkey 495,000 54,600 60,100 609,700 Iran 325,000 18,000 45,000 513,000*** Vietnam 412,000 42,000 30,000 484,000 * Includes 169,800 Marine Corps ** Includes Strategic Deterrent Forces, Paramilitary, National Guard, etc. *** Includes 125,000 Revolutionary Guards
World Military Expenditure 1993-2002
Military Defense Budgets Countries with the largest Defense Budgets, 2003 Country Budget, ($) US 291,200,000,000 Japan 45,600,000,000 UK 34,500,000,000 Russia 29,000,000,000 France 27,000,000,000 Germany 23,300,000,000 Saudi Arabia 18,700,000,000 Italy 16,000,000,000 India 15,900,000,000 China 14,500,000,000
Top 15 Countries in Military Expenditure Ranking in Purchasing Power Parity (PPP) $ Terms, 2002 Rank Country Size ($, Bil.) 1 USA 335.7 2 China 142.9 3 India 66.5 4 Russia 55.4 5 France 36.8 6 UK 34.0 7 Japan 32.8 8 Germany 31.0 9 Saudi Arabia 28.8 10 Italy 26.9 11 South Korea 24.3 12 Turkey 23.0 13 Brazil 22.8 14 Iran * 20.2 15 Pakistan 14.2 Total Top 15 895.3 *The Figure for Iran is for 2001
Percent Change, Year Ago 20 15 10 5 0-5 U.S. - National Defense Expenditures and Gross investment -10 70 75 80 85 90 95 00
Military Expenditure Growth Fiscal Year 2004 Expenditures for defense, international affairs, and homeland security are estimated to grow by 11.4 % in 2004, relative to the 2003 levels Expenditures for defense, international affairs, and homeland security is expected to grow by 0.22 % of GDP in 2004
GDP & Defense Spending NATO Allies, 2001 GDP Defense Spending NATO Allies Total ($,Bil.) Per capita ($) Total ($,Bil.) % of GDP Belgium 231.0 22,461 3.1 1.3 Canada 708.4 22,812 7.9 1.1 Czech Republic 55.4 5,403 1.2 2.2 Denmark 165.8 30,943 2.5 1.5 France 1309.2 22,157 33.6 2.6 Germany 1857.3 22,516 27.5 1.5 Greece 117.7 10,928 5.6 4.8 Hungary 51.0 5,101 0.9 1.8 Italy 1096.9 18,931 21.3 1.9 Luxembourg 19.3 43,569 0.2 0.8 Netherlands 384.3 24,020 6.4 1.7 Norway 168.5 37,394 3.0 1.8 Poland 178.5 4,621 3.5 2.0 Portugal 109.5 10,928 2.3 2.1 Spain 584.2 14,778 7.0 1.2 Turkey 143.3 2,106 7.2 5.0 United Kingdom 1426.7 23,797 34.3 2.4 United States 10189.5 36,663 305.9 3.0
GDP & Defense Spending Pacific Allies, 2001 GDP Defense Spending Pacific Allies Total ($,Bil.) Per capita ($) Total ($,Bil.) % of GDP Japan 4,132.6 32,556 41.2 1.0 Republic of Korea 416.1 8,719 11.8 2.8
GDP & Defense Spending Selected Countries, 2002 Selected GDP, (2002 ) Defense Spending (2002) Countries Total ($, Bil.) Per capita ($) Total ($, Bil.) % of GDP China 1,300 1,000 55.9 4.3 India 510.2 486.8 11.5 2.3 Vietnam 35.1 436.0 0.65 ('98) 2.5 ('98) Pakistan 68.8 ('03) 463.6 ('03) 2.96 4.3
GDP & Defense Spending Gulf Cooperation Council, 2001 Gulf Cooperation GDP Defense Spending Council (GCC) Total ($,Bil.) Per capita ($) Total ($,Bil.) % of GDP Bahrain 7.7 10,799 0.4 5.8 Kuwait 37.0 16,392 3.3 8.8 Oman 20.1 8,166 2.4 12.0 Qatar 16.5 27,031 1.5 8.8 Saudi Arabia 169.7 8,081 27.2 16.1 United Arab Emirates 66.0 20,133 3.4 5.2
GDP & Defense Spending Selected Countries Selected GDP, (2002 est.) Defense Spending Countries Total ($, Bil.) Per capita ($) Total ($, Bil.) % of GDP Egypt 83.7 1,261 4.04 ('99) 4.1 ('99) Iran 107.5 1,641 9.7 ('00) 9.0 ('00) Israel 117.4 19,500 8.97 ('02) 8.75 ('02) Syra 21.9 1,288 0.858 ('00) 3.9
Aerospace & Defense Operating Profit Margins, in Percent 2000 2001 2002 Large Commercial Aircraft 7.9 7.8 8.5 Business & Regional Aircraft 10.6 2.3 8.7 MRO 14.6 12.8 5.4 Jet Engines 14.8 14.2 12.3 Military Weapons 8.1 8.4 8.6 Rocket Launch & Satellite Making 0.5 0.3 2.2
US Navigational Instruments Mfg. Employment, 1992-2002 Ths. 560 540 520 500 480 460 440 420 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
US Aerospace Product & Parts Mfg. Employment, 1992-2002 Ths. 750 700 650 600 550 500 450 400 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
NATO Participation: In most recent U.S. Multilateral and U.N. Operations Country U.N. Non-U.N. Total U.S. 14 26 40 Belgium 8 9 17 Canada 11 8 19 Czech Republic 1 0 1 Denmark 9 5 14 France 10 18 28 Germany 7 15 22 Greece 5 11 16 Hungary 2 1 3 Iceland 1 0 1 U.N.= U.N. operations in which the U.S. participated with other NATO allies Non-U.N.= U.S. non-u.n. coalitions that included NATO allies
NATO Participation: In most recent U.S. Multilateral and U.N. Operations Country U.N. Non-U.N. Total Italy 7 14 21 Luxembourg 0 1 1 Netherlands 8 13 21 Norway 10 8 18 Poland 3 0 3 Portugal 6 8 14 Spain 4 11 15 Turkey 7 16 23 United Kingdom 7 22 29 U.N.= U.N. operations in which the U.S. participated with other NATO allies Non-U.N.= U.S. non-u.n. coalitions that included NATO allies
Aircraft provided in Balkan Operations Operation Name DENY ALLIED Country Flight, (%) FORCE, (%) U.S. 41.8 69.1 Belgium N/A 1.3 Canada N/A 1.7 Denmark N/A 0.8 France 13.8 7.9 Germany 5.9 3.1 Greece N/A N/A Iceland N/A N/A Italy 8.4 5.5 Luxembourg N/A N/A Netherlands 6.3 2.1 Norway 0.8 0.6 Portugal N/A 0.3 Spain 4.6 0.7 Turkey 3.3 2.0 U.K. 11.7 3.7 NAEWF 3.3 0.9
NATO Enlargement 29 March 2004: 7 New Members join NATO On 29 March 2004, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia formally became members of NATO by depositing their instruments of accession with the United States Government. - NATO OTAN 2004
NATO Enlargement 29 March 2004: 7 New Members join NATO The fifth round of NATO enlargement may not be the last. At present, three countries - Albania, Croatia and the former Yugoslav Republic of Macedonia - are members of NATO s Membership Action Plan (MAP), designed to assist aspiring partner countries meet NATO standards and prepare for possible future membership. - NATO OTAN 2004
Estimates of Iraq s Intern. Obligations Amount in Billion of Dollars Gulf War Reparations and Compensation Individuals and Families 27 Kuwait 69 Saudi Arabia, Egypt, Syria, Turkey, Israel and Jordan 36 Europe and the United States 24 Other Governments 43 Subtotal 199 Foreign Debt Gulf States and Kuwait 47 Other Countries 34 Accumulated Interest 47 Subtotal 128 Pending Contracts Russia 52 Others 5 Subtotal 57
Int. Financial Assistance for Iraq Projected, Billions of Dollars, 2004 to 2007 Grants Loans Total Source United States 18.4 0.0 18.4 Japan 1.5 3.4 4.9 World Bank 0.0 3.0 to 5.0 3.0 to 5.0 International Monetary Fund 0.0 2.6 to 4.3 2.6 to 4.3 European Union and Associated States 0.7 0.8 1.5 Saudi Arabia and Kuwait 0.5 0.5 1.0 Others 0 to 1.0 0 to 1.0 1.0
Risk Spread, 9-11 and Iraq Basis Points 1200 1000 Congress authorized use of force in Iraq. 800 600 400 200 Sep.11, 2001 2001 Bush s Speech at the UN about Iraq 2002 Saddam statue toppled. 2003
Dollar Per Euro 1.30 Decline of the Dollar 9-11 and Iraq 1.20 1.10 1.00 Sep.11, 2001 Bush s Speech at the UN about Iraq Congress authorized use of force in Iraq. 0.90 0.80 2001 2002 Saddam statue toppled. 2003
Decline of the Dollar 9-11 and Iraq Yen Per Dollar 135 130 125 Congress authorized use of force in Iraq. 120 115 110 Sep.11, 2001 105 100 2001 Bush s Speech at the UN about Iraq 2002 Saddam statue toppled. 2003
Iraq Defense Views President George W. Bush, 2004 America s commitment to freedom in Iraq is consistent with our ideals, and required by our interests. Iraq will either be a peaceful, democratic county, or it will again be a source of violence, a haven for terror, and a threat to America and to the world.
Iraq Defense Views Michael Smerconish, WPHT, Philadelphia, 2004 We haven t caught him (Osama bin Laden). Close doesn t count. We are capturing, we re killing a large number of terrorists and terrorist affiliates, which is a good thing, and it keeps them from killing more innocent men, women and children.
IRAQ Defense Views Defense Department Operational Briefing, 2004 The vast majority of the 25 million Iraqi people want freedom for their country. What we are witnessing today in Iraq is a power-play between those who favor terrorism and a return to oppression, and those determined to have freedom and self-government.
View on Counterterrorism British Prime Minister Tony Blair, 10 Sept. 2002 Terrorism and weapons of mass destruction combine modern technology and political or religious fanaticism. If unchecked they will, as September 11 showed us, explode into disorder and chaos.
Terrorist Groups Terrorist Group Short Name Home Base al Qaeda al Qaeda Afghanistan Abu Sayyaf Group ASG Philippines Self-Defense Forces of Colombia AUC Colombia Communist Party of Nepal-Maoist CPN-M Nepal Revolutionary People's Liberation Party/Front DHKP/C Greece National Liberation Army ELN Colombia Basque Fatherland and Liberty ETA Spain Salafrist Group for Preaching and Combat GSPC France Islamic Resistance Movement Hamas West Bank & Gaza Party of God Hizballah Lebanon
Total International Terrorist Attacks 1997-2002 1997 1998 1999 2000 2001 2002 Africa 11 21 53 55 33 5 Asia 21 49 72 99 68 99 Eurasia 42 14 35 31 3 7 Latin America 128 111 122 192 201 50 Middle East 37 31 26 20 29 29 North America 13 0 2 0 4 0 Western Europe 52 48 85 30 17 9
Total International Terror Casualties 1997-2002 1997 1998 1999 2000 2001 2002 Africa 28 5,379 185 102 150 12 Asia 344 635 690 904 651 1,281 Eurasia 27 12 8 103 0 615 Latin America 11 195 10 20 6 52 Middle East 480 68 31 78 513 772 North America 7 0 0 0 4,091 0 Western Europe 17 405 16 4 20 6
The Dynamic Nature of Terrorist Groups Factors that influence terrorist groups' capabilities Organizational Tools Operational Tools Ideology Command and control Leadership Weapons Recruitment pools Operational space Publicity Training Intelligence Technical expertise External weapon sources Sanctuary Money Deception skills
The Dynamic Nature of Terrorist Groups Anti-U.S. rhetoric and/or a stated goal of destabilizing important U.S. partners Association with another terrorist group that seeks to target U.S. citizens and institutions Explicitly anti-western ideology Targeting U.S. citizens and/or property to pursue a local agenda Specifically focusing attacks on U.S. targets - RAND Corporation, 2004
U.S. Strategy for the War on Terrorism Officials had for years been thinking about: Terrorism, Defense policy in the post-cold-war world, the spread of weapons of mass destruction and problem states such as Iraq, Iran, Libya and North Korea Under Secretary of Defense for Policy Douglas J. Feith, 2004
U.S. Strategy for the War on Terrorism Terrorism as crime, terrorism as war For years Americans were hit by terrorists. In the 1990s, Americans died and were injured in the: First World Trade Center bombing, Bombing of Khobar Towers in Saudi Arabia, Destruction of the U.S. s East Africa embassies and Bombing of the USS Cole in Yemen. Under Secretary of Defense for Policy Douglas J. Feith, 2004
U.S. Strategy for the War on Terrorism The Enemy Who is the enemy? The enemy is not a state or group of states. The enemy is a far-flung network of terrorist organizations and their state and non-state sponsors. Under Secretary of Defense for Policy Douglas J. Feith, 2004
U.S. Strategy for the War on Terrorism The U.S. strategy in the war on terrorism is to organize and help lead international efforts to deny terrorist groups systematically what they need to operate and survive, including: Safe havens, Leadership, Finances, Weapons (especially WMD), Ideological support and access to targets. Under Secretary of Defense for Policy Douglas J. Feith, 2004