Mapping the Military Industrial Complex

#123: A brief introduction to the defense industry.

The term Military Industrial Complex (MIC) is loaded, conjuring images of secretive arms dealers and wartime profiteers. Yet, most major defense contractors are publicly traded, subject to the same transparency and disclosure requirements as other corporations. While many details remain behind closed doors, we still have clear visibility into their revenues, relationships, and performance.

The defense industry, though closely associated with weapons manufacturing, extends far beyond—encompassing engineering, consulting, logistics, cyber, and technology companies that often overlap with civilian sectors. In this post, I aim to map out the key players and the broader landscape of the MIC.

My intent is to describe the defense industry as it stands today, not to make an investment pitch or suggest some crude thesis like "buy bombs before WWIII." I find the cavalier attitude towards escalating military tensions deeply troubling, and I acknowledge the inherent conflict of interest between a profit-seeking private military industry and the desire for peace at home and abroad.

Nevertheless, military contractors aren’t going anywhere. They are necessary in some form for national defense and have been critical in many technological advancements. For better or worse, cutting-edge technologies in aerospace, satellites, applied physics, communications, and advanced propulsion are often developed initially through military research. Indeed, one of my primary interests in this topic is to understand exactly where these technologies reside… but that will have to be the subject of a future post.

For now, let’s start with the basics—mapping the Military Industrial Complex.

Mapping the MIC

The defense industry starts with its key purchasers: government agencies. These include the U.S. Department of Defense, intelligence agencies (CIA, NSA, FBI), the Department of Homeland Security, NASA, NATO members, allied foreign militaries, and to a lesser extent, state and local governments. While defense spending must be authorized by Congress and is technically discretionary, it remains a reliable portion of the federal budget, consistently ranging between 3% and 5% of GDP since the Cold War.

Government agencies typically award contracts for complete systems to prime contractors, or Tier 1 contractors, like Lockheed Martin, RTX, and Northrop Grumman—companies you’re likely familiar with.

These prime contractors then rely on a web of subcontractors to deliver critical subsystems such as engines, navigation systems, and propulsion technologies (Tier 2), or specialized components and technologies (Tier 3). While prime contractors are well-defined, the line between Tier 2 and 3 contractors is often blurred. Many companies, especially those in aviation, also maintain significant civilian operations alongside their defense work.

To explore this more fully, I’ll categorize these companies using a hybrid of traditional contractor tiers and industry classifications, focusing on publicly traded entities. A detailed list and descriptions of these companies can be found in the appendix.

Prime Contractors