A significant portion of the funds allocated for Ukraine is used within the United States, supporting the defense sector and creating jobs in the American industry.
By Anna-Mariia Mandzii
The Ukrainian people are currently fighting for the territorial integrity and sovereignty of their state as well as defending the rest of European nations from Russian occupiers. They require financial and military support from their allies in the Euro-Atlantic region that also derive certain benefits from assisting Ukraine in addition to having democracy and fundamental principles of international law safeguarded.
The military assistance provided by the United States to Ukraine not only aids the Ukrainians but also benefits the American people.
“Let me be clear about something,” Biden said. “We send Ukraine equipment sitting in our stockpiles. And when we use the money allocated by Congress, we use it to replenish our own stores, our own stockpiles with new equipment.”
Despite numerous outspoken claims suggesting that Ukraine is receiving millions of dollars with allegedly unaccountable use, the primary component of American assistance is, in fact, military aid. This includes weaponry and essential equipment crucial for the Armed Forces of Ukraine to defend the country against destructive shelling and liberate the occupied Ukrainian territories.
Therefore, the words of American President Biden confirm the fact that Ukraine is being provided with essential weaponry, while, in contrast, American manufacturers receive financial investments for the production of new weapons to replenish American stocks. The provision of military aid to Ukraine has spurred the revival and expansion of numerous production facilities. This, in turn, has led to the revitalization of industries in certain regions where major manufacturing capacities are located, an influx of investments into the economies of these states, and, most importantly, the creation of new job opportunities for American citizens. It’s important to highlight that a considerable amount of the weaponry sent to Ukraine was initially part of the American arsenal and was stored in warehouses. As a result, a significant portion of the newly produced items is currently utilized to restock American reserves. Accordingly, this creates favorable conditions for the national security and defense of the United States, enhances the country’s production capacity, and modernizes its arsenal.
Therefore, the words of American President Biden confirm the fact that Ukraine is being provided with essential weaponry, while, in contrast, American manufacturers receive financial investments for the production of new weapons to replenish American stocks. The provision of military aid to Ukraine has spurred the revival and expansion of numerous production facilities. This, in turn, has led to the revitalization of industries in certain regions where major manufacturing capacities are located, an influx of investments into the economies of these states, and, most importantly, the creation of new job opportunities for American citizens. It’s important to highlight that a considerable amount of the weaponry sent to Ukraine was initially part of the American arsenal and was stored in warehouses. As a result, a significant portion of the newly produced items is currently utilized to restock American reserves. Accordingly, this creates favorable conditions for the national security and defense of the United States, enhances the country’s production capacity, and modernizes its arsenal.
It is also worth noting that the provision of military aid to Ukraine by American partners in Europe contributes to an increase in arms orders. European states seek to replace provided weaponry with new, more high-tech models and strengthen their defense capabilities in the face of heightened threats from Russia. This also fosters the expansion of manufacturing capacities in various states, attracts financial investments, and creates new jobs for American citizens.
U.S. aid to Ukraine has boosted economic activity and jobs in 38 states, the White House says.
According to information from Politico as of November 2023, the primary recipients of financial investments were Pennsylvania ($2.364 million), Arizona ($2.259 million), Arkansas ($1.478 million), Texas ($1.449 million), and Florida ($1.011 million). In total, the states had already received over $27 billion in investments from the allocation of funds for Ukraine’s defense.
Furthermore, such investments contribute to the creation of jobs in communities that had previously experienced decline, attracting a workforce influx and improving the economic well-being of American citizens and the states where they reside and work.
Some examples of how American manufacturers receive financial investments for the production of weapons while creating new jobs:
- Missiles for HIMARS systems are manufactured by Lockheed Martin at their production facility in Camden, Arkansas.
Lockheed Martin has recently secured new contracts worth approximately $0.5 billion for the production of HIMARS and guided missiles. The company is expanding its workforce at its production facility in Camden by 20%, aiming to hire 200 new employees. Lockheed Martin is actively recruiting technicians, assemblers, and inspectors, as well as production engineers, chemists, and mechanics. The contractor maintains collaborative relationships with several universities and plans to engage students in internship programs as well.
According to the latest Pentagon data, as of November 2023, Ukraine has been provided with 39 HIMARS batteries. In contrast, as of 2021, the United States possessed 365 HIMARS batteries. A production plan spanning from 2024 to 2028 aims to manufacture approximately 500 new HIMARS to meet the needs of the U.S. Armed Forces.
Ukraine utilizes HIMARS for precision strikes to eliminate Russian targets, including ammunition depots, command centers, and even bridges.
- Aerojet Rocketdyne manufactures rocket engines annually for weapons such as Javelin, Stinger, and Patriot, as well as guided rocket artillery systems in the cities of Camden and Huntsville, Arkansas.
The contractor has recently announced intentions to expand its energy capabilities in the city of Camden, specifically planning the construction of a facility covering 51,000 square meters in an industrial park. The current workforce at this plant exceeds 1000 employees. Consequently, the extensive construction of new facilities is expected to create numerous additional job opportunities.
The company has also announced leasing a facility covering 379,000 square feet to expand its manufacturing capabilities in Huntsville. The company will produce inert components to support solid rocket motors for various defense programs.
“Nearly $1.4 billion is buying the U.S. military new Javelin anti-tank missiles. These weapons are manufactured at facilities in Troy, Alabama, Ocala, Florida, Farmington, New Mexico, and Tucson, Arizona, that employ hundreds or thousands of Americans. Another $3 billion is producing new precision rockets and Patriot missiles for our military. That work is underway at a plant in Camden, Arkansas, that employs nearly 1,000 workers. Dozens of suppliers across the country are doing work to support these high-end weapons”, says US Senate Republican leader Mitch McConnell.
According to the latest Pentagon data, as of November 2023, Ukraine has been provided with over 2000 Stingers and more than 10,000 Javelins.
- Patriot systems are manufactured by RTX Corp. at a facility in Arizona, while artillery projectiles are produced across 12 states nationwide, including Pennsylvania, Ohio, and Texas. Arizona is also the birthplace of the legendary Stinger missile.
The city of Tucson in the state of Arizona, the birthplace of the Stinger missile, has not produced any missiles since 2005. However, in 2022, the local plant secured a contract worth $625 million to supply Stinger missiles to Ukraine.
According to the latest Pentagon data, as of November 2023, Ukraine has been provided with 1 Patriot battery. Periodically, Ukraine receives missiles for the Patriot system. In early January 2024, NATO announced a decision to facilitate the transfer of up to 1000 missiles to Ukraine for the Patriot systems.
Patriots are crucial air defense systems used by the Armed Forces of Ukraine to defend the country against ongoing shelling by Russian forces.
- The Texas-based company General Dynamics is involved in Defense Department programs for manufacturing a modular artillery system supporting 155mm artillery rounds.
General Dynamics Ordnance and Tactical Systems have leased a 240,000-square-foot building in the Mesquite Industrial Park to establish a new ammunition production plant. For many years, Mesquite was a small provincial town, but now it is transforming into a robust commercial center. This plant will add over 125 job opportunities to the local community.
- The Abrams tanks provided by the U.S. to Ukraine are manufactured in Lima, Ohio, home to the country’s only army tank plant, the Joint Systems Manufacturing Center.
In 2022, the Joint Systems Manufacturing Center hired 777 workers due to increased demand for the production or modernization of Abrams tanks.
According to Pentagon data, as of November 2023, Ukraine has been provided with 31 Abrams tanks.
- The Scranton Army Ammunition Plant in Pennsylvania processes steel casings for 155mm artillery projectiles. The assembly is handled by a facility in Iowa.
The Scranton plant is currently operating at maximum capacity, 24/7, and without breaks, with a workforce of 300 employees whose salaries are comparatively higher than most other professions in the region. By August 2024, the new facilities will increase production to over 80,000 projectiles per month, doubling the manufacturing capacity compared to December 2022.
Additionally, there are plans to expand production at plants in Kingsport, Tennessee, and Middletown, Iowa.
Once the U.S. achieves its goal of producing 80,000 projectiles per month (planned for 2024), the three companies managing the plants—General Dynamics, American Ordnance, and IMT Defense, respectively—will receive $250 million per month from the U.S. government.
According to Pentagon data, as of November 2023, Ukraine has been provided with over 2 million units of 155mm projectiles.
According to the American Enterprise Institute, 117 production lines in at least 31 states manufacture weapons supplied to Ukraine. Furthermore, their analysis demonstrates that there are at least 13 production lines in 10 states and 11 cities in the U.S. producing new American-made weapons for NATO allies to replace equipment sent to Ukraine.
Statistics from the U.S. Department of Defense
According to the U.S. Department of Defense, as of November 2023, $10.5 billion had been spent on the purchase of defense products directly from American manufacturers to support Ukraine (under the Ukraine Security Assistance Initiative program). Additionally, $16.8 billion had been invested in the production of weapons and equipment to replenish American stocks after assisting Ukraine (under the Ukraine Presidential Drawdown Replacement program), totaling $27.3 billion.
In addition, 3.3 billion dollars of direct industrial investments were allocated.
Conclusions
Providing military assistance is critically necessary to strengthen the defensive and offensive capabilities of the Armed Forces of Ukraine. Moreover, the benefits derived by the United States from this support are evident, not only in terms of maintaining the status of a global leader and advancing national interests but also in the economic advantage gained from the financial investments received by American manufacturers. The production capacities of most manufacturers were either halted or operating at significantly reduced levels. The urgent need to provide military support to Ukraine has spurred the process of restoring and expanding production, leading to the creation of new jobs. This, in turn, contributes to the improvement of economic and social indicators in the respective states. It enhances the influx of labor and supports the economies of states where major production facilities are located. Additionally, it strengthens the defense capabilities of the United States by revitalizing or expanding military enterprises, replacing old weaponry with new, more innovative, and technologically advanced systems.
The evident conclusion is that providing military assistance to Ukraine is a win-win situation for the United States and the American people and, therefore, should be supported by both parties. The loud rhetoric of certain representatives of the Republican Party opposing aid to Ukraine is manipulative and aimed at voters who may not be fully informed about the benefits that the American people derive from helping Ukraine. Beyond the advantages for American manufacturers and, consequently, the economies of states, the creation of new jobs also contributes to improving the global geopolitical positions of the U.S., supporting democracy, fostering allied relations, enhancing defense capabilities, and increasing readiness to counter any security threats both in the Euro-Atlantic region and other regions worldwide.
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