Today, additional U.S. troops are heading to Iraq as a part of the President’s plan to increase armed forces on the ground. A large percentage of the 21,500 additional service men and women will be stationed in Baghdad to help fight insurgents. Asked how long that buildup might last, Defense Secretary Robert Gates said, "It's viewed as a temporary surge, but I think no one has a really clear idea of how long that might be." On CNBC’s "Morning Call" Liz Claman took a closer look at the troops surge and the companies involved in the build-up.
The Bush plan raises the number of Americans in Iraq from 132,000 to 153,500 at a cost of $5.6 billion. "And it’s a strategy that will rely heavily on ground forces," said military sector analyst Wolfgang Demish. “That’s tanks, trucks, vehicles and the associated support gear.”
He explained that companies with large exposure to the army (as opposed to other branches of the armed services) are going to see demand rise. “Companies like General Dynamics , Textron and London Based BAE Systems.” (Also) companies like Armor Holdings (that help with the Humvee's) and companies which make body armor are likely to benefit, added Richard Tortoriello with Standard & Poors.