Big 3 defense contractors competing
The Boeing Company (NYSE:BA), Northrop Grumman, and the up and coming iRobot are all competitors in the international arena for the future of military combat. Lockheed Martin Corporation (NYSE:LMT)’s California-based Skunkworks has been developing drones for decades now. The latest project from Lockheed Martin Corporation (NYSE:LMT) is the Unmanned Carrier Launched Airborne Surveillance and Strike air vehicle (UCLASS).
The UCLASS is an inexpensive alternative to traditional manned aircraft like the $110 million F-35 joint strike fighter. The autonomous craft allows a single Air Force pilot to operate multiple drones simultaneously. Combining the capabilities of a trained pilot with an unmanned drone is the best of both worlds for the Air Force. From a military standpoint, multi-tasking flying drones 24/7, on recon missions utilizing an individual pilot, is the way of the future.
Lockheed Martin, the largest defense contractor in the U.S., has hedged its future with the unmanned drone program. If Pentagon budgetary cuts happen for FY 2014, Lockheed Martin will still fly high; supplying drones to the Pentagon and military powers of the world is a priority for this defense company.
Investor forecast
National security spending will continue to increase with the political instability of combat zones in the Middle East. According to DOD estimates, $152 billion was spent on military personnel in 2011. The cost for a single U.S. soldier in Afghanistan was $850,000 per year, and this does not include support costs for wounded soldiers after leaving the service.
The fact is, in the 21st century, the future of warfare is in unmanned drones that eliminate or reduce soldier casualties. Human military personnel are expensive to maintain. The world of “Skynet” from the popular movie Terminator is here, with the exception that humans operate unmanned drones via remote control instead of a central A.I. computer.
According to the DoD, global spending is expected to exceed $13.4 billion by the end of 2013. Aircrafts account for 90%of unmanned drones; ground and maritime drones account for $2.4 billion. The unmanned aerial vehicle demand for the Middle East is projected to cost $1 billion according to International Defence Exhibition (IDEX) officials.
From household robots to military applications, robots are here to stay for the 21st century and beyond. As discussed above, there are avenues that investors can take to participate in this growing market.
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The article Are Terminator Robots the Future of Warfare? originally appeared on Fool.com.
Robert Palmer has no position in any stocks mentioned. The Motley Fool recommends iRobot. The Motley Fool owns shares of Lockheed Martin and Northrop Grumman. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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