missile_man
ACCESS: Confidential
- Joined
- 17 October 2024
- Messages
- 108
- Reaction score
- 203
The overwhelming worldwide demand, the accelerated production schedule, the increased manpower, increased overtime and the amount of supply chain expedite costs are driving cost per missile.Both PAC-3 MSE and THAAD production scaling and increased contract activity will be a good test for what the legacy OEM's have been saying privately and sometime publicly for years which is 'award larger contract / increase production lots and unit cost should dramatically improve'. So far, despite of this, at least on the PAC-3 MSE, unit cost reduction on account of higher production has not really managed to do anything other than keep up with inflation. I expect both to get slightly expensive as suppliers ramp up or new ones are brought online. Much like offensive fires this is an area I'm sure new entrants are exploring approaching with highly vertically integrated solutions (vs current primes that are basically sub contracting out most critical components).