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| South Korea's T-50, T-50/FA-50 Golden Eagle |
Aaron Mehta
WASHINGTON — A global push to grow domestic defense industries will have a dramatic impact on the Western defense export market over the next decade, a new report is warning.
Authored by Daniel Yoon and Doug Berenson, the report by Avascent, “Dynamics of International Military Modernization 2016,” concludes that while many challengers will emerge, the trio of Israel, South Korea and Brazil provide the most immediate threats to Western markets
Ironically, the market threat is one with its origins in Western exports, with the authors noting that “in many cases, these emerging players developed through diffused technology via prior export arrangements with Western suppliers, often through offsets requirements and domestic industry participation.”
Over the last five years, American firms have aggressively pursued foreign sales to try and offset a slowdown in US military funding. By and large American firms were successful in that strategy, the authors found, with “foreign sales have partially offset the decline in domestic demand since 2010, when only 17 percent of defense equipment manufactured in the United States was exported; by 2015, that number jumped dramatically to 34 percent.”
Read the full story at DefenseNews