November 30, 2025, 3:02 pm
Sponsored by: Private Internet Access: https://www.piavpn.com/Perun
Many countries have gotten pretty good at producing cutting edge military equipment – but cheap equipment is often a different matter.
With the war in Ukraine demonstrating that quantity and affordability can sometimes matter as much as raw capability, today (by patron vote), I want to unpack some of the reasons countries can sometimes struggle to build equipment for less than eye-watering prices – and what options might be available to try and narrow the cost gap with more economical competitors.
Patreon:
https://www.patreon.com/PerunAU
Reading and Sourcing (partial):
U.S. DoD Office of the Inspector General – Audit of the Business Model for TransDigm Group Inc. and Its Impact on Department of Defense Spare Parts Pricing (DODIG-2022-043)
https://www.dodig.mil/reports.html/article/2871623/audit-of-the-business-model-for-transdigm-group-inc-and-its-impact-on-departmen/
https://media.defense.gov/2021/Dec/27/2002914678/-1/-1/1/DODIG-2022-043%20508.PDF
USN cancels the constellation class frigate
https://www.twz.com/sea/navy-sinks-the-constellation-class-frigate-program
Included reporting on constellation
https://www.twz.com/sea/first-constellation-frigate-only-10-complete-design-still-being-finalized
CSIS – Calculating the Cost-Effectiveness of Russia’s Drone Strikes
https://www.csis.org/analysis/calculating-cost-effectiveness-russias-drone-strikes#:~:text=Table_title:%20Cost%2DEffectiveness%20of%20Selected%20Russian%20Weapons%20Table_content:,(USD):%20$15%2C000%2C000%20%7C%20Payload%20(lbs):%201%2C050%20%7C
2024 reporting on firms wanting persistent orders
https://www.bbc.com/news/articles/c5y832nyl2po
Janes – Netherlands plans to sign Leopard 2A8 MBT contract in mid-May
https://www.janes.com/osint-insights/defence-news/c4isr/netherlands-plans-to-sign-leopard-2a8-mbt-contract-in-mid-may
USAF Procurement of Ammunition Justification Book FY2025
https://www.saffm.hq.af.mil/Portals/84/documents/FY25/FY25%20Air%20Force%20Ammunition%20Procurement.pdf
USAF Procurement of Missiles Justification Book FY2025
https://www.saffm.hq.af.mil/Portals/84/documents/FY25/FY25%20Air%20Force%20Missile%20Procurement.pdf
ROK Destroyer Procurement
https://www.defensenews.com/naval/2019/05/02/south-korea-to-build-3-more-aegis-destroyers-able-to-thwart-ballistic-missiles/
C. Dougherty – Gradually and Then Suddenly: Explaining the Navy’s Strategic Bankruptcy
Gradually and Then Suddenly: Explaining the Navy’s Strategic Bankruptcy
F-35 in Midnight Hammer
https://www.businessinsider.com/f-35s-flew-deep-iran-last-ones-out-midnight-hammer-2025-11
US to buy a million drones by 2028
https://www.twz.com/air/army-sets-out-to-buy-a-million-drones-by-2028
USAF seeking low–cost anti air missile
https://www.twz.com/air/usafs-new-low-cost-anti-air-missile-program-aims-for-500k-target-price
S LaGrone – Air Boss: Navy Committed to Maintaining 11 Aircraft Carriers
https://news.usni.org/2025/08/26/air-boss-navy-committed-to-maintaining-11-aircraft-carriers-ford-class-program
Reporting on AJAX training halt
https://www.theguardian.com/uk-news/2025/nov/26/british-army-halts-ajax-armoured-vehicle-training-noise-vibrations-soldiers-ill
Ukraine clones Russian "Molniya" drone
https://united24media.com/latest-news/ukraine-clones-russias-low-cost-molniya-drone-now-even-cheaper-and-deadlier-10499
Reporting on RAPTOR torpedo
https://www.twz.com/sea/navy-wants-a-cheap-heavy-torpedo-that-can-be-stockpiled-fast
Reporting on Leopard 2A8 New Builds
https://www.defensenews.com/global/europe/2025/11/20/knds-unveils-the-leopard-2a8-first-new-battle-tank-build-since-1992
Caveats & Comments:
All normal caveats and comments apply. In particular – I would like to note as always that this material has been created for entertainment purposes and is not intended to be a complete or comprehensive examination of the topic in question and should not be relied upon to inform financial or other similar decisions.
Any content relating to the conduct, views, activities or any aspect of any person or character in this video is included for entertainment purposes and does not represent an assertion of fact on those matters or any matters in relation to that person or character.
Care has been taken in compiling data, quotes, and other inputs from various sources but errors can occur. Quotes and included data should be considered illustrative, not definitive and their veracity should not be relied on.
Timestamps:
00:00:00 — Opening Words
00:01:39 — What Am I Talking About?
00:03:52 — How Bad is It?
00:14:51 — Who?
00:20:48 — the Military Doesn’t Ask for Them
00:27:52 — Governments Doesn’t Fund Them
00:32:06 — Industry Doesn’t Design Them
00:37:05 — Commercial OTS Inputs & Incentives
00:43:57 — Scale, Predictability & Incentives
00:52:32 — Are Things Changing?
00:58:45 — Channel Update
Content Creator – Perun
