JRL NEWSWATCH: “Billions in Ukraine defense spending has been slow to translate into U.S. jobs” – NBC
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“More than a year and a half since Russia’s invasion of Ukraine, defense companies have been struggling to hire workers, untangle supply chains and restart mothballed production lines.”
“Billions … spent by the federal government to arm Ukraine and replenish U.S. military stockpiles have been slow to translate into a significant number of new [U.S.] jobs … as defense manufacturers grapple with logistical challenges … ramping up production. Weapons manufacturers and [DOD] officials declined to say how many workers have been hired to help meet … demand … [C]omments by company executives and corporate filings indicate … number[s] of jobs ha[ve] been relatively small compared to the overall size of the industry despite the [related spending]. More than a year and a half since Russia’s invasion of Ukraine, defense companies say they have been struggling to hire workers in a tight labor market, untangle supply chain snarls and restart mothballed production lines. While there are … signs of progress, [reportedly] it could be several more years before production peaks and … dollars earmarked for the [Ukraine] war … impact the wider economy ….”
Ammunition has been in big demand. Ukraine fires thousands of rounds daily. DOD reportedly anticipates spending $2 billion to increase weapons and ammunition production at plants in Pennsylvania, Iowa, Tennessee and Virginia in connection with Ukraine.
In 2023 DOD has doubled production of 155mm artillery shells used in large towed guns. Reportedly DOD anticipates further tripling that production to 100,000 a month by 2025, with related investments in facilities.
One ongoing question will be whether bolstered manufacturing is sustained at higher capacities or will encounter future cycles of expansion and contraction.
DOD reportedly has not addressed related job creation numbers. For one Iowa ammunition plant an outside hiring agency lists 26 open positions.