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
- 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.
- DoD research, development, test, and evaluation (RDT&E) funding for FY2023 was $143.1 billion.
- US military personnel pay and allowances cost $182.8 billion in FY2023.
- Operation and Maintenance (O&M) accounts received $283.3 billion in the FY2023 DoD budget.
- Procurement funding in the FY2023 DoD budget was $167.5 billion.
- Military construction and family housing budget for FY2023 was $15.2 billion.
- The FY2022 supplemental appropriations for Ukraine aid totaled $47.8 billion for US defense-related support.
- DoD base budget request for FY2025 is $849.8 billion.
- US defense outlays in 2022 were $877 billion per CBO estimates.
- Revolving and management funds accounted for $9.7 billion in FY2023 DoD budget.
- Other DoD funds (non-base) added $113.3 billion to FY2023 national defense spending.
- Defense Health Program funding was $38.1 billion in FY2023.
- Shipbuilding and Conversion Navy (SCN) appropriation was $32.6 billion in FY2023.
- Aircraft Procurement Army funding totaled $7.1 billion in FY2023.
- Missile Procurement Air Force was $5.9 billion in FY2023 budget.
- DoD-wide Other Procurement funding was $24.8 billion for FY2023.
- National Guard and Reserve equipment funding was $10.2 billion in FY2023.
- US defense spending as percentage of GDP was 3.5% in 2022.
- FY2023 DoD budget authority grew 10% from FY2022 levels.
- Defense-wide RDT&E funding increased to $144.5 billion requested for FY2024.
- Army base budget for FY2023 was $185.9 billion.
- Navy base budget FY2023 totaled $230.8 billion.
- Air Force base budget for FY2023 was $216.1 billion.
- Space Force budget authority in FY2023 was $26.3 billion.
- Defense Logistics Agency funding was $42.5 billion in FY2023 O&M.
- US FY2021 defense budget outlays were $766 billion per Treasury data.
- Projected FY2025 national defense function (050) outlays are $1,016 billion.
- DoD Overseas Contingency Operations funding was $68.4 billion in FY2023.
Budget 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
- 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.
- General Dynamics 2023 revenue was $42.3 billion, including $33.7 billion from defense segments.
- Boeing Defense, Space & Security segment reported $25.0 billion in revenue for 2023.
- BAE Systems US operations contributed $13.2 billion to global revenue in 2023 from defense contracts.
- Huntington Ingalls Industries shipbuilding revenue was $11.5 billion in 2023.
- L3Harris Technologies net revenue $19.4 billion in 2023, mostly defense electronics.
- Leidos 2023 revenue from US Government contracts was $13.7 billion.
- Booz Allen Hamilton defense-related revenue approximated $8.5 billion in FY2023.
- Top 100 US arms firms had combined arms sales of $317 billion in 2022 per SIPRI.
- Lockheed Martin received $48.7 billion in DoD contracts in FY2023 per USASpending.
- RTX secured $27.4 billion in US defense prime contracts in FY2023.
- Northrop Grumman awarded $21.9 billion in DoD contracts during FY2023.
- General Dynamics DoD contract obligations totaled $18.6 billion in FY2023.
- Boeing received $16.2 billion in defense contracts from DoD in FY2023.
- Lockheed Martin's F-35 program contracts exceeded $10 billion in FY2023 alone.
- Raytheon missile contracts valued at $8.5 billion awarded in FY2023 for Patriot systems.
- Northrop Grumman B-21 Raider development contract worth $21.1 billion through 2023.
- General Dynamics Land Systems won $2.1 billion Abrams tank contract in FY2023.
- Boeing KC-46 tanker program contracts totaled $4.9 billion in FY2023 obligations.
- HII Newport News Shipbuilding received $3.7 billion for Virginia-class submarines in FY2023.
- L3Harris communication systems contracts hit $3.2 billion with DoD in FY2023.
- Lockheed Martin Sikorsky helicopter division secured $2.8 billion Black Hawk contracts FY2023.
- Top 5 US contractors received 32% of total DoD contract dollars in 2022.
- DoD awarded 5.8 million contracts worth $466 billion in FY2023 per FPDS.
- Services contracts comprised 52% of DoD obligations, $242 billion in FY2023.
- Products contracts were 48% of DoD spending, $224 billion FY2023.
- Lockheed Martin market cap reached $114 billion as of end-2023.
- RTX backlog stood at $202 billion at end of 2023.
Contractor 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
- 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.
- RTX workforce totaled 185,000 employees at end-2023.
- Northrop Grumman had 95,000 employees in 2023.
- General Dynamics employed 106,000 personnel in 2023.
- Boeing defense division employed approximately 35,000 in 2023.
- Aerospace and defense manufacturing jobs grew 2.1% to 712,000 in 2023.
- California hosted 14.5% of US defense jobs, about 165,000 in 2022.
- Virginia had 11.8% of defense workforce, roughly 134,000 jobs in 2022.
- Texas defense employment was 102,000 direct jobs in 2022.
- Defense industry average salary was $112,000 annually in 2022.
- STEM occupations comprised 42% of defense direct jobs in 2022.
- Women represented 25% of the defense industry workforce in 2022.
- Veterans made up 15% of defense sector employees in 2022.
- Defense jobs contributed $162 billion in labor income in 2022.
- Shipbuilding sector employed 92,000 workers in 2023.
- Missile and munitions manufacturing had 45,000 jobs in 2022.
- Aircraft manufacturing employed 412,000 in NAICS 336411 in 2023.
- DoD civilian workforce was 772,000 in 2023.
- Contractors outnumbered DoD civilians 1.4:1 in 2022.
- Defense R&D workforce estimated at 250,000 engineers and scientists in 2023.
- Florida defense jobs totaled 78,000 in 2022.
- Maryland hosted 72,000 defense-related jobs in 2022.
- Alabama defense employment was 58,000 in 2022.
- Defense industry labor shortage affected 75% of firms in 2023 survey.
Employment 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
- 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.
- Saudi Arabia received $30 billion in US arms approvals in FY2023.
- Ukraine aid via Presidential Drawdown Authority totaled $17.5 billion in weapons FY2023.
- F-35 exports approved to 19 partner nations with 1,000+ units by 2040 projection.
- Australia purchased 72 F-35A jets for $11.5 billion in 2023 deal.
- Poland ordered 96 Apache AH-64E helicopters for $12 billion in 2022-2023.
- UAE approved for 50 F-35s worth $10 billion pending 2023.
- Direct Commercial Sales (DCS) notifications exceeded $150 billion in FY2023.
- Top export customer India signed $3 billion Apache deal in 2023.
- NATO allies received 60% of US FMS in FY2023.
- Taiwan arms sales approved $18 billion cumulative 2023 including Harpoons.
- Japan procured 400 Tomahawk missiles for $2.4 billion in 2023.
- Germany ordered 35 F-35s for $8.3 billion nuclear mission in 2023.
- US exported $14.5 billion in armored vehicles 2018-2022.
- Qatar FMS case for Patriot systems valued $2.2 billion in 2023.
- Export of MQ-9 drones to 10+ nations exceeded 400 units by 2023.
- US defense trade surplus was $125 billion in 2022.
- UK purchased 38 F-35B for $4.5 billion additional in 2023.
- Israel received $3.8 billion annual aid including Iron Dome components 2023.
- South Korea F-35 deal for 40 jets at $3.8 billion finalized 2023.
- Export controls licensed $200 billion in defense articles FY2023.
- Canada ordered 88 F-35A for $19 billion in 2023 selection.
- Egypt HIMARS export approved 54 units $1.2 billion 2023.
Exports 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
- 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.
- Army bought 210 Stryker vehicles with lethality upgrades in FY2023.
- US produced 1,700 Tomahawk cruise missiles cumulative through 2023.
- DoD delivered 141 new helicopters to services in FY2023.
- Shipbuilding output included 2 Arleigh Burke destroyers commissioned in 2023.
- Lockheed Martin delivered 156 F-35 aircraft globally in 2023.
- Raytheon produced 1,200 Stinger missiles in 2023 ramp-up.
- General Dynamics delivered 300 Abrams tanks to US Army in 2023.
- Boeing produced 36 KC-46 Pegasus tankers through 2023 cumulative.
- Northrop Grumman manufactured 500 E-2D Hawkeye aircraft wings in 2023.
- HII launched 1 Gerald R. Ford-class carrier section in 2023.
- US munitions production included 20,000 155mm artillery shells in Q4 2023.
- Precision Guided Munitions procured 8,000 JDAMs in FY2023.
- Army aviation bought 145 AH-64E Apache helicopters in FY2023.
- Space Force procured 20 GPS III satellites through 2023.
- DoD hypersonic weapon prototypes tested 12 in 2023.
- Unmanned systems procurement included 500 MQ-9 Reapers cumulatively by 2023.
- Navy Littoral Combat Ships delivered 4 in 2023.
- F-22 fleet sustainment procured parts for 180 aircraft in FY2023.
- HIMARS launchers procured 54 by Army in FY2023.
- Virginia-class submarine production rate 2 boats per year achieved in 2023.
Procurement 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
- Reference 1COMPTROLLERcomptroller.defense.govVisit source
- Reference 2SIPRIsipri.orgVisit source
- Reference 3CBOcbo.govVisit source
- Reference 4FISCALfiscal.treasury.govVisit source
- Reference 5LOCKHEEDMARTINlockheedmartin.comVisit source
- Reference 6RTXrtx.comVisit source
- Reference 7NORTHROPGRUMMANnorthropgrumman.comVisit source
- Reference 8GDgd.comVisit source
- Reference 9BOEINGboeing.comVisit source
- Reference 10BAESYSTEMSbaesystems.comVisit source
- Reference 11HIIhii.comVisit source
- Reference 12L3HARRISl3harris.comVisit source
- Reference 13LEIDOSleidos.comVisit source
- Reference 14INVESTORSinvestors.boozallen.comVisit source
- Reference 15USASPENDINGusaspending.govVisit source
- Reference 16DODIGdodig.milVisit source
- Reference 17DEFENSEdefense.govVisit source
- Reference 18GAOgao.govVisit source
- Reference 19NEWSnews.lockheedmartin.comVisit source
- Reference 20BLOOMBERGbloomberg.govtprocurementVisit source
- Reference 21FPDSfpds.govVisit source
- Reference 22ACQUISITIONacquisition.govVisit source
- Reference 23FINANCEfinance.yahoo.comVisit source
- Reference 24AEROSPACEaerospace.orgVisit source
- Reference 25BLSbls.govVisit source
- Reference 26NAVSEAnavsea.navy.milVisit source
- Reference 27CNAScnas.orgVisit source
- Reference 28NSFnsf.govVisit source
- Reference 29NDIAndia.orgVisit source
- Reference 30NAVALNEWSnavalnews.comVisit source
- Reference 31F35f35.comVisit source
- Reference 32ARMYarmy.milVisit source
- Reference 33RAYTHEONMISSILESANDDEFENSEraytheonmissilesanddefense.comVisit source
- Reference 34NAVYnavy.milVisit source
- Reference 35DTRAdtra.milVisit source
- Reference 36GA-ASIga-asi.comVisit source
- Reference 37NEWSnews.usni.orgVisit source
- Reference 38STATEstate.govVisit source
- Reference 39DSCAdsca.milVisit source
- Reference 40PMDDTCpmddtc.state.govVisit source
- Reference 41AIRFORCE-TECHNOLOGYairforce-technology.comVisit source
- Reference 42BEAbea.govVisit source
- Reference 43GOVgov.ukVisit source
- Reference 44BISbis.doc.govVisit source
- Reference 45CANADAcanada.caVisit source