KEY POINTS
- Pentagon is pressing US missile makers to double output of 12 critical weapons systems.
- Priority weapons include Patriot interceptors, LRASM, Standard Missile-6 and Precision Strike Missiles.
- Munitions Acceleration Council, led partly by Deputy Defence Secretary, is monitoring progress.
- Stockpile gaps highlighted by the Ukraine war and Israel-Iran conflict have raised urgency.
- Defence firms expanding capacity with Boeing and Northrop Grumman have boosted facilities; Lockheed and RTX also scaling up.
- Defence shares rose after the WSJ report, with RTX up 2.5%, Lockheed 2.3%, Boeing 1.6% and Northrop 0.9%.
WASHINGTON: The US Department of Defence is pushing missile manufacturers to expand production of critical weapons systems to prepare for a potential conflict with China, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The WSJ report said the Pentagon has asked contractors to double or even quadruple output of 12 priority systems, including Patriot interceptors, Long Range Anti-Ship Missiles (LRASM), the Standard Missile-6 and Precision Strike Missiles.
The effort is being coordinated through a new body, the Munitions Acceleration Council, led in part by Deputy Defence Secretary Steve Feinberg, according to the WSJ report.
Feinberg has taken an unusually hands-on role, holding weekly calls with senior executives from leading defence companies to track progress, the report added.
Reuters reported that it could not immediately verify the Wall Street Journal report, adding that the Pentagon did not respond to a request for comment.
Stockpile concerns after conflicts
According to Investing.com, US military planners are alarmed by the low levels of missile stockpiles highlighted in recent war games and planning scenarios.
Shortfalls in air defence and strike weapons have also been exposed during the Russia-Ukraine war and the recent Israel-Iran conflict, which saw the United States fire hundreds of advanced interceptors, according to Investing.com.
The Pentagon is seeking to secure nearly 2,000 PAC-3 Patriot missiles between fiscal years 2024 and 2026 – almost four times the current rate – the WSJ report stated.
Industry response
Defence contractors have begun expanding production capacity in anticipation of higher demand. Boeing has completed a 35,000-square-foot expansion for Patriot missile seekers, while Northrop Grumman has invested more than $1 billion in solid rocket motor facilities to nearly double output over four years, the Wall Street Journal reported.
Lockheed Martin and RTX (formerly Raytheon) have also increased factory space, added workers and stockpiled parts, according to the report.
Funding and feasibility questions
Despite the push, industry executives and analysts have raised concerns over whether the Pentagon’s targets are achievable without significantly more funding.
RTX Chief Executive Christopher Calio, in a July letter cited by the Wall Street Journal, warned that more contracts and financial commitments were needed to sustain production growth.
“Companies don’t build these things on spec,” Tom Karako, a munitions expert, said as cited by the WSJ report, noting that testing requirements, supply chain bottlenecks and long lead times would constrain any rapid ramp-up.
Market reaction
Shares of US defence companies rose in premarket trading on Monday after the Wall Street Journal report.
RTX gained 2.5%, Lockheed Martin rose 2.3%, Northrop Grumman climbed 0.9%, Boeing advanced 1.6% and L3 Harris was up 1%, financial news site Investing.com reported.
