U.S. Aerospace and Defense Industry Welcomes Trump Victory (excerpt)
(Source: Reuters; published Nov 09, 2016)
By Alwyn Scott
Defense contractors in particular stand to benefit from a Trump presidency, given his pledges to beef up the U.S. military.
Boeing Co, which is finalizing a deal to sell 100 jetliners to Iran, congratulated Trump and members of Congress and said it looked forward to working with them to promote global economic growth and protect workers. Trump has strongly criticized an Iran nuclear deal that made the sale possible.
The warm response from the world's No. 1 plane maker echoed friendly overtures from other U.S. manufacturers such as Ford Motor Co, which endured sharp criticism from Trump during the campaign for its growing operations in Mexico.
Manufacturers also pressed Trump on issues such as restoring the U.S. Export-Import Bank, increasing defense spending and pouring more investment into airport infrastructure.
Shares of aerospace and defense companies rose on Wednesday. The Dow Jones U.S. aerospace and defense index was up 4 percent in afternoon trading. Boeing shares were up 2 percent at $145.20 on the New York Stock Exchange. Among other major arms makers, Raytheon Co was up 7.4 percent at $146.56 and Lockheed Martin Corp was up 6 percent at $253.50.
NO "TREATY RIPPING"
Trump had derided trade agreements such as the North American Free Trade Agreement and the pending Trans-Pacific Partnership as bad deals, and vowed to renegotiate them. He also threatened to upend global security alliances.
But on Wednesday, industry trade groups said Trump had not created as much uncertainty for manufacturers as his rhetoric suggested, and offered policy prescriptions.
"It would be hard for a brand-new president to come in and say, 'I'm ripping up this treaty,'" David Melcher, chief executive officer of the Aerospace Industries Association, said in an interview. The organization, founded in 1919, represents more than 300 aerospace and defense companies. (end of excerpt)
Click here for the full story, on the Reuters website.
(ends)
Machinists Union Responds to Election of Donald Trump
(Source: IAM; issued Nov 09, 2016)
“I want to sincerely thank the thousands of IAM members and working people who voted, volunteered and made a difference in this year’s election. To those who are saddened by the result, I offer my promise that your union’s commitment to fighting for you is unwavering.
“This puts to bed questions over the depth of Americans’ anxiety over the systematic destruction of good jobs, the loss of retirement security and a trade policy that benefits few at the expense of many. It’s something the IAM and the labor movement has been sounding alarms about for decades. This was not the result many thought was the best way forward, but we are Americans: We get up, dust ourselves off and keep working toward a better future together.
“As a labor union, we deal with those whom we disagree with every day at the bargaining table. We try to find common ground. That’s exactly what we intend to do in this new reality.
“There’s things we won’t compromise on: racism, sexism, common decency and respect. We will always stand up when people are mistreated. We will never give in to the politics of fear and division. We will continue to fight for better jobs, higher wages, secure pensions, health care, safe and healthy workplaces, and justice and dignity on the job.
“We hope to work with President-elect Trump on what he said were central tenants behind his campaign—restoring the American middle class and bringing work back to the United States. Working people, coming together in unions, must be a part of that vision for it to be successful.”
The IAM is among the nation’s largest and most diverse industrial trade unions, with nearly 600,000 members in aerospace, manufacturing, transportation, shipbuilding, woodworking, electronics and the federal sector.
(ends)
Four Questions About How Trump Would Affect the Military Industrial Complex (excerpt)
(Source: Washington Post; published Nov 09, 2016)
By Christian Davenport November
Here are four questions about how he would handle the world’s largest defense industry.
Who does Trump pick as secretary of defense?
If Hillary Clinton won, many in Washington thought that Michele Flournoy, the chief executive of the think tank Center for New American Security, would get the top job. She’s well known inside the beltway, having served as the under-secretary of defense for policy from 2009 to 2012, while also serving in the Pentagon in the mid-1990s.
Under Trump, it’s not clear who he’ll appoint. As a businessman who ran against the Washington establishment, some think he could bring an outsider to shake up the world’s largest bureaucracy, with 3 million people on the payroll.
Mackenzie Eaglen, a defense analyst with the American Enterprise Institute who briefed the Trump campaign three times, said she urged against picking an outsider. “It’s much harder to make work given the sheer size of the Defense Department,” she said. “You don’t need someone who has to spend the first 12 months learning the acronyms.”
Trump says he wants to rebuild the military. What will that look like?
Trump has said he wants to increase the size of the Army and the Marine Corps, build new ships for the Navy and add jets to the Air Force’s arsenal and modernize the nuclear arsenal. Defense stocks jumped Wednesday morning with news of his election. BAE System and Raytheon saw their stock prices go up more than 6 percent by 11 a.m. Wednesday. Lockheed Martin was up more than 5 percent.
“Trump’s win is good news for the defense industry, especially when coupled with Republican majorities in the House and Senate,” said Loren Thompson, a defense consultant who advises many of the nation’s top tier contractors. (See next story below—Ed.)
Increasing the size of the military will favor BAE Systems and General Dynamics, plus helicopter makers Boeing and Lockheed Martin, in particular, he said. Northrop Grumman, which is building the Air Force’s new bomber, could be a winner, he said, as could General Dynamics and Huntington Ingalls, companies that make submarines. (end of excerpt)
Click here for the full story, on the Washington Post website.
(ends)
For the Defense Industry, Trump's Win Means Happy Days Are Here Again (excerpt)
(Source: Forbes magazine; posted Nov 9, 2016)
By Loren Thompson, Lexington Institute
President Obama has been reasonably supportive of the military during his tenure, but he has followed the typical vector of post-Vietnam Democrats in favoring personnel and readiness spending over weapons outlays. Surges in weapons spending usually require Republican control of the White House and Senate, which is what Washington will now have. Although Trump’s plan for massive tax cuts and belief that there is extensive waste in the Pentagon budget may limit weapons increases, here are some items sure to get funded.
First, Trump has repeatedly stated that he will modernize the nation’s aging nuclear arsenal, which consists of missile-carrying submarines, land-based missiles in Midwestern silos, and long-range bombers. The Obama Administration has nuclear modernization plans, but it hasn’t explained where the money will come from. Now, it is sure to come. Big winners: General Dynamics and Huntington Ingalls Industries which make subs, Lockheed Martin which makes sub-launched missiles, Northrop Grumman which is building a new bomber, and Boeing which builds tankers and airborne command posts to support the nuclear force. One of these companies will also be tapped to replace land-based Minuteman missiles.
Second, Trump has proposed significantly increasing the size of the Army and Marine Corps, which will require major equipping initiatives. Vehicle makers BAE Systems and General Dynamics will benefit not only from new production, but also upgrades to the existing fleet making it more lethal and resilient. Helicopter makers Boeing and Lockheed Martin will almost certainly get more money, as will companies like BAE Systems and Raytheon that provide radios, electronic warfare gear, and ground-based air defense systems. (end of excerpt)
Click here for the full story, on the Forbes website.
-ends-
from Defense Aerospace - Press releases http://www.defense-aerospace.com/cgi-bin/client/modele.pl?shop=dae&modele=release&prod=178671&cat=3
via Defense
No comments: