Private security defense contractors refer to organizations or companies that merge security groups such as the military and law enforcement units. In the United States, these private contractors, which include companies such as the Triple Canopy, Olive Group, or Academy formerly Blackwater companies play a significant role in the maintenance of national and external security. However, with the inauguration of the current president, Donald Trump, private defense contractors industry is expecting various impacts. Below is a discussion of the effects of President Trump’s administration on private security companies.
The present administration of the United States ultimate effect on private defense contractors is certain to attest more complicated compared to the post-election euphoria of Walls Street. After current president’s, victory on the 8th of November 2016, the defense sector has highly benefited from the stock upticks. Apparently, the price of stock in the most common defense-related corporation has increased by roughly 6%. Moreover, according to Schwartz (2017), investment analysts are bullish on most of the stock related storks since Trump administration is vowed to enhancing national security, reinforce the country’s manufacturing and reduce the income that rates of companies. Additionally, as highlighted by Johnson (2017), considering that Republicans are controlling either side of capital, it aspires that the spending on defense will go up.
Despite the above-explained allegations on the impact of the current administration on the private security contractors, the significant impact on the industry will be determined by the plans of the president on the PMSC (private military and security contracting industry). Currently, no one is sure about the plans of the president on the PMSC industry (Johnson, 2017). According to the majority of analysts, contend that it will have a positive impact. Apparently, the new administration plans to upgrade as well as increase the military in several ways. The PMSC assists the military in peacekeeping missions, especially outside the United States in countries such as Syria and Afghanistan (Johnson, 2017).
According to Silva (2017), even though Trump may reject the nation-building idea in countries in the Middle East as elsewhere, including in Iraq, Asia and, Afghanistan, the United States is willing to progress being a major player in the reconstruction of such regions. Essentially, this is because it will be a future jackpot for the US private companies. Remarkably, since President Trump claimed that he has a secret plan to beat the IS, he has no alternative to employing private contractors. Additionally, the likelihood of trumps administration considering a well-crafted strategy to counteract insurgent groups such as the al-Qaida and ISIS is quite high (Johnson, 2017). Consequently, this also suggests that he may heavily depend on private advisors on the matter regarding the security of the country.
As revealed in the above discussion, private defense companies refer to organizations that merge security groups such as the military and law enforcement units. Such companies include companies such as Triple Canopy and Olive Group. With the new administration, the defense sector has highly benefited from the stock upticks. Apparently, the new administration has promised Americans better security in the country during Trump’s reign, and this has led to the price of stock in the most common defense-related corporation to increase by roughly 6%. These effects result from the fact that despite the fact that Trump is more likely to reject the idea of national building, the United States must play its role in the maintenance peace in other countries such as Syria due to the private effect of such acts on the private sector. Consequently, the general impact of the trumps administration on the private defense sector will probably be positive.