Weapons makers look overseas as Pentagon cuts back
6/13/2009 2:04:00 PM
Associated Press/AP Online
By STEPHEN MANNING WASHINGTON - Foreign governments looking to kick the tires of fighter jets and cargo planes at this week's air show in Paris will likely hear a clear message from U.S. defense contractors: We need your business now more than ever.
With the United States looking to cut defense costs and rethinking the way it fights wars, many defense companies are looking for international buyers to take the big, pricey weapons that the Pentagon no longer wants or needs fewer of. U.S. contractors are chasing some lucrative deals, but could also face some legal and political hurdles as they hawk weapons overseas.
Boeing Co. and Lockheed Martin Corp. are competing to sell fighter planes to countries such as India and Brazil. Boeing is trying to spark international interest in its C-17 cargo plane. Middle Eastern nations fearful of threats from Iran are bulking up on missile defense equipment from Lockheed and Raytheon Co.
"This is a world market right now," says Chris Chadwick, Boeing's president of military aircraft.
Globalization is nothing new for many U.S. industries, which often use overseas operations and sales to tap into fast-growing areas like China and as a hedge against domestic downturns. Some of the nation's biggest manufacturers, companies like Caterpillar and General Electric, make more than half of their sales overseas.
6/13/2009 2:04:00 PM
Associated Press/AP Online
By STEPHEN MANNING WASHINGTON - Foreign governments looking to kick the tires of fighter jets and cargo planes at this week's air show in Paris will likely hear a clear message from U.S. defense contractors: We need your business now more than ever.
With the United States looking to cut defense costs and rethinking the way it fights wars, many defense companies are looking for international buyers to take the big, pricey weapons that the Pentagon no longer wants or needs fewer of. U.S. contractors are chasing some lucrative deals, but could also face some legal and political hurdles as they hawk weapons overseas.
Boeing Co. and Lockheed Martin Corp. are competing to sell fighter planes to countries such as India and Brazil. Boeing is trying to spark international interest in its C-17 cargo plane. Middle Eastern nations fearful of threats from Iran are bulking up on missile defense equipment from Lockheed and Raytheon Co.
"This is a world market right now," says Chris Chadwick, Boeing's president of military aircraft.
Globalization is nothing new for many U.S. industries, which often use overseas operations and sales to tap into fast-growing areas like China and as a hedge against domestic downturns. Some of the nation's biggest manufacturers, companies like Caterpillar and General Electric, make more than half of their sales overseas.
