It’s not a big surprise that most of the big companies in the world have been doing quite well in the wake of the global financial crisis.
But the biggest beneficiary of the crash in the past year is none other than Australia’s biggest defence contractor.
As we reported in July, Boeing has been the world’s largest military contractor, with a whopping $21 billion worth of contracts worth $7.7 trillion.
And the company’s latest contract for $2.8 billion worth military-grade aircraft parts for Australian military jets is just the latest example of the booming military aerospace sector.
The company’s CEO, Robert Capa, recently told the Financial Times that the aerospace sector in Australia was worth $12 billion.
The military aerospace industry in Australia is worth $22 billionSource: ABC News (AUSTRALIA)By 2020, the defence industry in the country could be worth $50 billion, according to the government.
And as the ABC reported in January, Australia has become the world leader in military hardware manufacturing.
“Our defence sector is really a global market,” Senator Sam Dastyari said on Senate estimates.
“It’s not just about Australia, it’s about all of the nations that have invested in defence and the capabilities that they have.”
But according to a recent study by the Australian Strategic Policy Institute (ASPI), the defence sector in the Australian states and territories is worth less than $2 billion a year.
The report, titled A Strategy for Prosperity and Security in the 21st Century, says that “it is now estimated that the Australian defence industry will have a revenue of just $5 billion a day by 2020”.
“If you go to the top 25 military-industrial companies in Australia, only five are in the top 20 of the most recent annual global military industrial index,” the ASPI report reads.
“So we are actually not even at the top 10,” Mr Dastyaris said.
“It is very clear that we are in a very strong position.”
The report also found that Australia’s defence exports to the United States were worth $8 billion a month, compared to $4.5 billion to the UK, which has a $11 billion military industry.
What does all of this mean?
The ASPI study states that “Australia is the world leaders in military equipment manufacturing”, but the government has been keeping mum about its plans to export Australian military hardware to the US.
When the Pentagon is in the middle of the biggest peacetime arms trade deal in history, the fact that it’s been able to get so much bang for its buck from Australia is a testament to how much of an economic and political powerhouse it is.
And that’s why the Australian military is one of the best places to be a military industrialist in the Western world.
“If we can export defence, it means we can invest in our military and make a positive contribution to our country,” said Mr Dastari.
And the Australian Government is already planning to expand its military industrial base to the Middle East and Europe, as well as Australia’s own overseas territories.
Why the US is Australia’s best export market for military equipmentSource: Reuters article The US military is Australia-firstThe US is an important ally in the fight against ISIS, but the country’s military is also home to Australia’s second largest export market: the US military.
Australia has an estimated $2 trillion defence industry and it has been growing at a rapid rate over the past few years, according the ASI.
The Australian Government has recently approved a $500 million deal to build an aircraft carrier in the South China Sea, and the country is also the world home to a new naval base.
As we’ve reported before, the Pentagon wants to use its military bases as a hub for regional arms transfers and it’s a lucrative area for arms manufacturers in Australia.
This is why it’s so important for the Australian Defence Force (ADF) to be able to supply the US with its military hardware.
“As part of the transition to the post-9/11 global military environment, our Government has made it a priority to ensure that our military assets are capable of operating in the region,” said the ADF in a statement to Business Insider.
“This includes supporting US military capabilities in the Middle Eastern and North African regions, supporting our allies in the Indo-Pacific, and in other regions of the world.”
But according the latest ASPI research, Australian defence exports are not exactly being distributed fairly to the Australian market.
As the ABC’s The World Tonight reported in May, the Australian government’s “military-industrial complex” is the second-largest export market in the US, behind China.
But it’s not the only market for Australian arms companies.
In fact, the ADG has been looking to boost its defence export business over the last few years.
It recently announced a