by TheMeta40k
The world is burning through 155mm shells faster than a crackhead can chain smoke. The US Government has ordered a massive increase in 155mm shell production. They gave a contact to General dynamics valued at 900 ish million in a multi year deal to produce shells.
The US army is looking for another 3 billion to procure 155mm shells and they don’t just want more, they want more faster. Total production capacity needs to rise.
Companies positioned to provide 155mm shells en mass are poised to be on the receiving end of massive government contracts.
General dynamics has posted between 6 and 10% increase in revenue YoY. According to what I have been following on the current wars the needs of artillery crews are not even close to being met. The topic of artillery shell productions is a hot one both in US defense and European defense sectors.
How can we beat take advantage of shell hunger? These are disposable single use items that have to be used in the millions. General dynamics looks like a target but I’m struggling with finding other well positioned US based public companies that have significant shell production capabilities that might be under valued.
Personally I think demand for shells will rise in the next few years.