Naval air defense can combine missiles with lasers and electronic warfare. Western interceptor prices partly reflect the small number of weapons ordered, since research costs must be spread over fewer units. Dependable future work also allows manufacturers to spread profits across more weapons instead of relying on high margins on small orders. The procurement argument connects small orders with limited stockpiles, low exercise expenditure, and fewer weapons fitted to ships and aircraft. Sustained production is proposed as a way to lower unit prices and supply more weapons for these uses.
Notable Point · 17:37-19:04
Missile production, stockpiles, and unit cost
Small missile orders spread research costs over fewer weapons and deny manufacturers dependable production volume, helping explain high interceptor prices.