Selling a Business Blog

With the United States fighting two wars simultaneously and continuing to improve homeland security, defense-related products and services are in high demand. The U.S is the principal determinant of the current world trend, as its military expenditure now accounts for just under half of the world total (41.5 percent).

Says CEO/President of The March Group Bob Scarlata, "Based on the defense-related deals we have active right now, we are seeing significant and solid interest from defense-related buyers - both strategic and financial. Essentially, any company involved in any way with defense - either military or homeland defense - is hot property right now.”

A lot of the interest can be attributed to the “Obama Effect.” Fuelled by rumours of assault weapons bans, the months following President Barack Obama’s election saw a tremendous run on weapon and ammunition sales. According to the latest Department of the Treasury's Firearms and Ammunitions Excise Tax Collection Report in August, firearm and ammunition manufacturers paid more than $109.8 million in the first calendar quarter of 2009 - up 43 percent over the same time period reported in 2008.

There were recent instances of ammunition shortages in some areas of the country, with people moving quickly to prepare for a potential weapons ban. In September, the FBI's National Instant Criminal Background Check System (NICS) provided another strong indicator of a rise in demand reporting that 6.1 million background checks for gun sales were issued from January to May, an increase of 25.6 percent from the same period the year before.

So far, neither the new administration nor Congress has been markedly antigun. Obama has said he respects Second Amendment rights, but favours “common sense” on gun laws. Even so, concerns about the possible changes continue to help fuel growth in the arms industry.

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