{"id":67719,"date":"2024-08-08T12:10:22","date_gmt":"2024-08-08T12:10:22","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2024\/08\/08\/with-the-world-on-edge-defense-stocks-soar\/"},"modified":"2026-08-08T01:08:34","modified_gmt":"2026-08-08T01:08:34","slug":"with-the-world-on-edge-defense-stocks-soar","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/opinion\/2024\/08\/08\/with-the-world-on-edge-defense-stocks-soar\/","title":{"rendered":"With the world on edge, defense stocks soar"},"content":{"rendered":"\n

About two and a half years ago, the world changed. Geopolitical tension rose in the aftermath of Russia\u2019s full-scale invasion of Ukraine<\/a>, forcing NATO and European nations to emerge from years of complacency to recognize the threat that remained on their doorstep.<\/p>\n\n\n\n

This was followed by the attack by Hamas<\/a> on an Israeli music and arts festival in October 2023 and the subsequent response by Israel in the Gaza Strip \u2014 and so far only minor skirmishes<\/a> in the region<\/a> between other players<\/a>.<\/p>\n\n\n\n

And with the Chinese government<\/a> increasing its military budget<\/a> by an estimated 6% to $296 billion in 2023, spending by Japan and Taiwan each grew<\/a> 11%.<\/p>\n\n\n\n

The result of these actions has hardened the resolve of nations and brought security front and center to political discussions. In 2023, government spending on defense increased to a record $2.443 trillion for the procurement of military equipment and supplies to combat threats; to support allies; and to bolster border security.<\/p>\n\n\n\n

According to the Stockholm International Peace Research Institute think tank, this is the ninth consecutive year of increases, with last year\u2019s gain of 6.8% the highest level ever recorded.<\/p>\n\n\n\n

These resources have funneled through to the global corporations that build, maintain, support and sell the weaponry and supplies. In the U.S. alone, defense spending<\/a> grew from $721.5 billion in fiscal 2020 (before President Joe Biden took office) to a proposed fiscal 2025 national defense budget<\/a> of about $926.8 billion; a 28.5% increase.<\/p>\n\n\n\n

Defense News\u2019 Top 100<\/a> list contains 68 publicly traded companies \u2014 or at least their parent organizations \u2014 that represent about 73% of the list\u2019s total FY23 defense revenues of $603.9 billion. Exclude China\u2019s presence on the list, and the percentage increases to 89%.<\/p>\n\n\n\t