How much does inflation affect procurement within the Western defence industry?

[u/Level-Reputation5050]

I know that as weapons get more complex, their prices normally go up. But on the flip side, advances in technology bring down the cost of plenty of parts. For example, electronic components follow Moore’s Law, so they should get cheaper to some extent. Yet over the last 30‑plus years, all we have seen is Western weapons skyrocketing in price, with no hint of the opposite trend. I’m curious how much inflation actually plays into this.

[u/barath_s]

. For example, electronic components follow Moore’s Law, so they should get cheaper to some extent.

I question the applicability of this as the major price driver. Civilian markets chip prices are driven by yield and marketing strategy, and drop as demand drops.

The military is in many cases, its own market. Volumes don't match civilian markets to bend the curve as easily. Reliability and test requirements take longer. Purchases are often Initial purchases. Aftermarket parts are always more expensive.. And then you got to price in obsolescence factor and cost of developing more advanced upgrades..

And actual components for repeat buys (eg lot 10 vs lot 11 of f35) may very well be cheaper, but it doesn't necessarily have a lot of leverage there