There are more than 25,000 military and defense contractors serving the US DoD. Roughly two-thirds of US Department of Defense contracts go to the top six defense primes:
- Boeing
- General Dynamics
- BAE Systems
- Raytheon
- Lockheed Martin
- Northrop Grumman
Major suppliers of defense products and services are profitable, showing positive earnings before interest, tax, depreciation, and amortization (EBITDA) margins.
EBITDA margin (%) for largest 6 defense primes
Major defense suppliers have seen growing demand for their products and services, driving higher sales and greater scale, helping to reduce costs and boost competitiveness.
SEE ALSO
Chinese top defense company revenues v US, worldwide defense firms
To maintain top line growth and mitigate the cyclicality of U.S. defense spending, some firms will continue to diversify their customer base and pursue international and non-defense customers.
Big 6 primes revenue breakdown
Worldwide military and defense contract electronics providers
Today there are 1000s of contract electronics manufacturing services (EMS) providers among the many, other contractors and (sub-contractors to defense primes) also serving US armed forces. Search contract EMS providers serving ITAR compliant military/defense sector here.
Read about military defense and aerospace lead-free risks here. Read about military REACH compliance here. For information about writing military and defense requests-for-proposals (RFP) to minimize risk of rejection, go here.
Procurement – budget authority (FY 2007 – FY 2023)
Below, information on Pentagon CAGR procurement percentages for missiles, ammunition, shipbuilding and conversion, weapons, chemical agents and munitions destruction, aircraft and space.
The US defense industry should experience continued growth as DoD budget authority for operation and maintenance (O&M), procurement, and research development, test and evaluation (RDT&E) increases. The bulk of the budgeted spending is allocated to O&M followed by procurement spending.
Get list of EMS manufacturers for your requirements (Its free)
Save time and money. Find quality EMS manufacturers. Fast. Venture Outsource has a massive, global database of contract electronic design and manufacturing capabilities. Speak with a Provider Advisor.
“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors tell you matches we find for your needs, answer your questions and, can share EMS industry knowledge specific to your industries and markets.
