While American families argued over grocery prices last year, the Pentagon was spending the equivalent of over $2.2 billion every single day, fueling a defense industry so vast that its budget alone would make it the world's third-largest military behind the U.S. and China.
Key Takeaways
- The US Department of Defense (DoD) enacted budget for fiscal year 2023 totaled $820.3 billion in budget authority.
- US national defense spending in 2022 accounted for 40% of global military expenditure according to SIPRI.
- The FY2024 DoD budget request included $29.5 billion for missile defense programs.
- Lockheed Martin reported $67.6 billion in total net sales for 2023, with 71% from US Government contracts primarily defense.
- RTX (Raytheon) generated $68.9 billion in net sales for 2023, 90% from defense and government customers.
- Northrop Grumman net sales reached $39.3 billion in 2023, with Aeronautics Systems at $12.4 billion.
- The US defense industry employed 1.14 million direct workers in 2022.
- Defense sector supported 2.9 million total jobs including indirect in 2022.
- Lockheed Martin employed 122,000 people worldwide as of 2023, 95% US-based.
- DoD procured 2,100 new armored vehicles in FY2023.
- Navy awarded contracts for 10 Virginia-class submarines in multi-year procurement FY2023.
- Air Force procured 48 F-35A Lightning II jets in FY2023.
- US arms exports reached $238 billion in government-to-government sales 2018-2022.
- Foreign Military Sales (FMS) cases totaled 13,000 active in FY2023 valued at $500 billion potential.
- US share of global arms exports was 40% from 2018-2022 per SIPRI.
The US defense industry's massive budget dominates global military spending and manufacturing.
Budget and Funding
1The US Department of Defense (DoD) enacted budget for fiscal year 2023 totaled $820.3 billion in budget authority.
Verified2US national defense spending in 2022 accounted for 40% of global military expenditure according to SIPRI.
Verified3The FY2024 DoD budget request included $29.5 billion for missile defense programs.
Verified4DoD research, development, test, and evaluation (RDT&E) funding for FY2023 was $143.1 billion.
Directional5US military personnel pay and allowances cost $182.8 billion in FY2023.
Single source6Operation and Maintenance (O&M) accounts received $283.3 billion in the FY2023 DoD budget.
Verified7Procurement funding in the FY2023 DoD budget was $167.5 billion.
Verified8Military construction and family housing budget for FY2023 was $15.2 billion.
Verified9The FY2022 supplemental appropriations for Ukraine aid totaled $47.8 billion for US defense-related support.
Directional10DoD base budget request for FY2025 is $849.8 billion.
Single source11US defense outlays in 2022 were $877 billion per CBO estimates.
Verified12Revolving and management funds accounted for $9.7 billion in FY2023 DoD budget.
Verified13Other DoD funds (non-base) added $113.3 billion to FY2023 national defense spending.
Verified14Defense Health Program funding was $38.1 billion in FY2023.
Directional15Shipbuilding and Conversion Navy (SCN) appropriation was $32.6 billion in FY2023.
Single source16Aircraft Procurement Army funding totaled $7.1 billion in FY2023.
Verified17Missile Procurement Air Force was $5.9 billion in FY2023 budget.
Verified18DoD-wide Other Procurement funding was $24.8 billion for FY2023.
Verified19National Guard and Reserve equipment funding was $10.2 billion in FY2023.
Directional20US defense spending as percentage of GDP was 3.5% in 2022.
Single source21FY2023 DoD budget authority grew 10% from FY2022 levels.
Verified22Defense-wide RDT&E funding increased to $144.5 billion requested for FY2024.
Verified23Army base budget for FY2023 was $185.9 billion.
Verified24Navy base budget FY2023 totaled $230.8 billion.
Directional25Air Force base budget for FY2023 was $216.1 billion.
Single source26Space Force budget authority in FY2023 was $26.3 billion.
Verified27Defense Logistics Agency funding was $42.5 billion in FY2023 O&M.
Verified28US FY2021 defense budget outlays were $766 billion per Treasury data.
Verified29Projected FY2025 national defense function (050) outlays are $1,016 billion.
Directional30DoD Overseas Contingency Operations funding was $68.4 billion in FY2023.
Single sourceBudget and Funding Interpretation
We've become so adept at funding the machinery of deterrence that our military's annual ledger now reads like the gross national product of a medium-sized, exceptionally well-armed planet.
Contractor Revenues and Contracts
1Lockheed Martin reported $67.6 billion in total net sales for 2023, with 71% from US Government contracts primarily defense.
Verified2RTX (Raytheon) generated $68.9 billion in net sales for 2023, 90% from defense and government customers.
Verified3Northrop Grumman net sales reached $39.3 billion in 2023, with Aeronautics Systems at $12.4 billion.
Verified4General Dynamics 2023 revenue was $42.3 billion, including $33.7 billion from defense segments.
Directional5Boeing Defense, Space & Security segment reported $25.0 billion in revenue for 2023.
Single source6BAE Systems US operations contributed $13.2 billion to global revenue in 2023 from defense contracts.
Verified7Huntington Ingalls Industries shipbuilding revenue was $11.5 billion in 2023.
Verified8L3Harris Technologies net revenue $19.4 billion in 2023, mostly defense electronics.
Verified9Leidos 2023 revenue from US Government contracts was $13.7 billion.
Directional10Booz Allen Hamilton defense-related revenue approximated $8.5 billion in FY2023.
Single source11Top 100 US arms firms had combined arms sales of $317 billion in 2022 per SIPRI.
Verified12Lockheed Martin received $48.7 billion in DoD contracts in FY2023 per USASpending.
Verified13RTX secured $27.4 billion in US defense prime contracts in FY2023.
Verified14Northrop Grumman awarded $21.9 billion in DoD contracts during FY2023.
Directional15General Dynamics DoD contract obligations totaled $18.6 billion in FY2023.
Single source16Boeing received $16.2 billion in defense contracts from DoD in FY2023.
Verified17Lockheed Martin's F-35 program contracts exceeded $10 billion in FY2023 alone.
Verified18Raytheon missile contracts valued at $8.5 billion awarded in FY2023 for Patriot systems.
Verified19Northrop Grumman B-21 Raider development contract worth $21.1 billion through 2023.
Directional20General Dynamics Land Systems won $2.1 billion Abrams tank contract in FY2023.
Single source21Boeing KC-46 tanker program contracts totaled $4.9 billion in FY2023 obligations.
Verified22HII Newport News Shipbuilding received $3.7 billion for Virginia-class submarines in FY2023.
Verified23L3Harris communication systems contracts hit $3.2 billion with DoD in FY2023.
Verified24Lockheed Martin Sikorsky helicopter division secured $2.8 billion Black Hawk contracts FY2023.
Directional25Top 5 US contractors received 32% of total DoD contract dollars in 2022.
Single source26DoD awarded 5.8 million contracts worth $466 billion in FY2023 per FPDS.
Verified27Services contracts comprised 52% of DoD obligations, $242 billion in FY2023.
Verified28Products contracts were 48% of DoD spending, $224 billion FY2023.
Verified29Lockheed Martin market cap reached $114 billion as of end-2023.
Directional30RTX backlog stood at $202 billion at end of 2023.
Single sourceContractor Revenues and Contracts Interpretation
In a display of industrial symbiosis that would make any ecosystem blush, the U.S. Department of Defense essentially functioned as a trillion-dollar patron for a handful of corporate titans in 2023, proving that peace, or at least its expensive preparation, is a spectacularly profitable business.
Employment and Workforce
1The US defense industry employed 1.14 million direct workers in 2022.
Verified2Defense sector supported 2.9 million total jobs including indirect in 2022.
Verified3Lockheed Martin employed 122,000 people worldwide as of 2023, 95% US-based.
Verified4RTX workforce totaled 185,000 employees at end-2023.
Directional5Northrop Grumman had 95,000 employees in 2023.
Single source6General Dynamics employed 106,000 personnel in 2023.
Verified7Boeing defense division employed approximately 35,000 in 2023.
Verified8Aerospace and defense manufacturing jobs grew 2.1% to 712,000 in 2023.
Verified9California hosted 14.5% of US defense jobs, about 165,000 in 2022.
Directional10Virginia had 11.8% of defense workforce, roughly 134,000 jobs in 2022.
Single source11Texas defense employment was 102,000 direct jobs in 2022.
Verified12Defense industry average salary was $112,000 annually in 2022.
Verified13STEM occupations comprised 42% of defense direct jobs in 2022.
Verified14Women represented 25% of the defense industry workforce in 2022.
Directional15Veterans made up 15% of defense sector employees in 2022.
Single source16Defense jobs contributed $162 billion in labor income in 2022.
Verified17Shipbuilding sector employed 92,000 workers in 2023.
Verified18Missile and munitions manufacturing had 45,000 jobs in 2022.
Verified19Aircraft manufacturing employed 412,000 in NAICS 336411 in 2023.
Directional20DoD civilian workforce was 772,000 in 2023.
Single source21Contractors outnumbered DoD civilians 1.4:1 in 2022.
Verified22Defense R&D workforce estimated at 250,000 engineers and scientists in 2023.
Verified23Florida defense jobs totaled 78,000 in 2022.
Verified24Maryland hosted 72,000 defense-related jobs in 2022.
Directional25Alabama defense employment was 58,000 in 2022.
Single source26Defense industry labor shortage affected 75% of firms in 2023 survey.
VerifiedEmployment and Workforce Interpretation
While the gears of American power are greased by a surprisingly compact industrial army of just over a million direct workers, their economic footprint is a political hydra—multiplying into nearly three million total jobs, anchoring major states with high-paying, STEM-heavy careers, yet forever haunted by the specter of not being able to find enough people willing to build the future of warfare.
Exports and International Sales
1US arms exports reached $238 billion in government-to-government sales 2018-2022.
Verified2Foreign Military Sales (FMS) cases totaled 13,000 active in FY2023 valued at $500 billion potential.
Verified3US share of global arms exports was 40% from 2018-2022 per SIPRI.
Verified4Saudi Arabia received $30 billion in US arms approvals in FY2023.
Directional5Ukraine aid via Presidential Drawdown Authority totaled $17.5 billion in weapons FY2023.
Single source6F-35 exports approved to 19 partner nations with 1,000+ units by 2040 projection.
Verified7Australia purchased 72 F-35A jets for $11.5 billion in 2023 deal.
Verified8Poland ordered 96 Apache AH-64E helicopters for $12 billion in 2022-2023.
Verified9UAE approved for 50 F-35s worth $10 billion pending 2023.
Directional10Direct Commercial Sales (DCS) notifications exceeded $150 billion in FY2023.
Single source11Top export customer India signed $3 billion Apache deal in 2023.
Verified12NATO allies received 60% of US FMS in FY2023.
Verified13Taiwan arms sales approved $18 billion cumulative 2023 including Harpoons.
Verified14Japan procured 400 Tomahawk missiles for $2.4 billion in 2023.
Directional15Germany ordered 35 F-35s for $8.3 billion nuclear mission in 2023.
Single source16US exported $14.5 billion in armored vehicles 2018-2022.
Verified17Qatar FMS case for Patriot systems valued $2.2 billion in 2023.
Verified18Export of MQ-9 drones to 10+ nations exceeded 400 units by 2023.
Verified19US defense trade surplus was $125 billion in 2022.
Directional20UK purchased 38 F-35B for $4.5 billion additional in 2023.
Single source21Israel received $3.8 billion annual aid including Iron Dome components 2023.
Verified22South Korea F-35 deal for 40 jets at $3.8 billion finalized 2023.
Verified23Export controls licensed $200 billion in defense articles FY2023.
Verified24Canada ordered 88 F-35A for $19 billion in 2023 selection.
Directional25Egypt HIMARS export approved 54 units $1.2 billion 2023.
Single sourceExports and International Sales Interpretation
The United States has decisively locked in its role as the world's indispensable arms dealer, not just by selling staggering volumes of weapons but by embedding its military hardware so deeply into the strategic foundations of allies and partners that its industrial output has become a primary currency of global security and diplomacy.
Procurement and Production
1DoD procured 2,100 new armored vehicles in FY2023.
Verified2Navy awarded contracts for 10 Virginia-class submarines in multi-year procurement FY2023.
Verified3Air Force procured 48 F-35A Lightning II jets in FY2023.
Verified4Army bought 210 Stryker vehicles with lethality upgrades in FY2023.
Directional5US produced 1,700 Tomahawk cruise missiles cumulative through 2023.
Single source6DoD delivered 141 new helicopters to services in FY2023.
Verified7Shipbuilding output included 2 Arleigh Burke destroyers commissioned in 2023.
Verified8Lockheed Martin delivered 156 F-35 aircraft globally in 2023.
Verified9Raytheon produced 1,200 Stinger missiles in 2023 ramp-up.
Directional10General Dynamics delivered 300 Abrams tanks to US Army in 2023.
Single source11Boeing produced 36 KC-46 Pegasus tankers through 2023 cumulative.
Verified12Northrop Grumman manufactured 500 E-2D Hawkeye aircraft wings in 2023.
Verified13HII launched 1 Gerald R. Ford-class carrier section in 2023.
Verified14US munitions production included 20,000 155mm artillery shells in Q4 2023.
Directional15Precision Guided Munitions procured 8,000 JDAMs in FY2023.
Single source16Army aviation bought 145 AH-64E Apache helicopters in FY2023.
Verified17Space Force procured 20 GPS III satellites through 2023.
Verified18DoD hypersonic weapon prototypes tested 12 in 2023.
Verified19Unmanned systems procurement included 500 MQ-9 Reapers cumulatively by 2023.
Directional20Navy Littoral Combat Ships delivered 4 in 2023.
Single source21F-22 fleet sustainment procured parts for 180 aircraft in FY2023.
Verified22HIMARS launchers procured 54 by Army in FY2023.
Verified23Virginia-class submarine production rate 2 boats per year achieved in 2023.
VerifiedProcurement and Production Interpretation
The United States' defense industrial base is humming with the methodical, prolific output of a superpower that profoundly wishes it didn't have to be so good at making things that go 'boom'.
Sources & References
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