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The Impact of Army Bets: Surge in US Artillery Shells during Ukraine War

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The US Artillery Shell Surge during the Ukraine War: A Complex Industrial Expansion

The Pentagon has embarked on an ambitious plan to ramp up production of the most widely used artillery shell in Ukraine, necessitating a series of coordinated actions across the United States. The goal is to increase the production of 155mm artillery shells from the current rate of 28,000 per month to 100,000 per month. This surge in production is a response to the depletion of American stockpiles caused by the shipments of Javelin anti-tank missiles, Stinger surface-to-air missiles, howitzers, and ammunition to Ukraine.

Industrial Expansion and Investment

To achieve this production surge, the Pentagon has allocated $2.5 billion out of a $3.4 billion contract for industrial expansion. The focus is on boosting the production of 155mm artillery rounds. The plan involves expanding existing facilities and establishing new ones, such as the IMT Defence facility in Ontario, Canada, and a General Dynamics Corp. facility in Mesquite, Texas. Investments in new manufacturing technology, including robots, are being made to enhance production capacity.

Challenges and Steps Forward

The success of this ambitious plan depends on overcoming various challenges and taking multiple steps. The expansion of facilities, the increase in shifts, and the addition of new machines are the initial steps. The production of explosive fill, including the safer option of IMX (Insensitive Explosive Munitions), and the exploration of domestic sources for TNT are crucial aspects that need to be addressed. The Army is also working on enhancing the production of modular artillery charges.
Cost Considerations
While the goal of producing 100,000 rounds per month is within reach, the affordability of such a massive quantity remains a significant factor. The estimated cost of purchasing these rounds, after accounting for the expenses of facility investments, is approximately $3.5 billion annually. This financial commitment highlights the seriousness and scale of the endeavor. In conclusion, the surge in US artillery shell production during the Ukraine War is a complex undertaking that necessitates significant industrial expansion and investment. Overcoming challenges related to facility expansion, explosive fill production, and cost considerations will be crucial in achieving the desired production goals.

Hot Take: The Impact of US Artillery Shell Surge on New Businesses

The Pentagon's ambitious plan to increase artillery shell production in response to the Ukraine War presents both opportunities and challenges for new businesses.

Opportunities for Industrial Expansion

The plan involves significant industrial expansion and investment, opening avenues for new businesses in the defense manufacturing sector. The establishment of new facilities and the expansion of existing ones could lead to increased demand for services related to construction, logistics, and manufacturing technology.

Technological Innovation and Investment

The investment in new manufacturing technology, including robotics, signals a push towards automation and technological innovation in the defense industry. This could provide opportunities for tech startups and businesses specializing in automation and robotics.
Cost and Supply Chain Considerations
However, the plan also presents challenges. The high cost of production and the need for domestic sources of materials like TNT could pose supply chain and financial challenges for new businesses. In conclusion, the surge in US artillery shell production during the Ukraine War could significantly impact new businesses in the defense and technology sectors. While there are opportunities for growth and innovation, businesses must also navigate cost and supply chain challenges to succeed in this evolving landscape.
Story First Published at: https://financialpost.com/pmn/business-pmn/us-artillery-shell-surge-during-ukraine-war-hinges-on-army-bets
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