A Rude Awakening for the Defence Industry
For decades, the defence industry has been a rather sleepy affair, running on peacetime logic. Efficiency was king. Production lines were kept lean, supply chains were optimised for cost, and the idea of suddenly needing thousands of extra missiles was the stuff of Hollywood films. That cosy consensus has now been well and truly shattered. The decision to ramp up to 2,000 missiles a year isn't just an expansion, it's a frantic rebuilding of industrial muscle that was deliberately allowed to atrophy. This creates a fascinating, if perilous, environment for investors. Companies are being asked to sprint a marathon, and some, I suspect, will pull a hamstring before the first mile is done.