Army Technology

BAE Systems wins contract for US assembly of M109A7 artillery

A boost for local economies as BAE Systems ramps up M109A7 and M992A3 production in five states.

BAE Systems Land and Armaments has been awarded a $579.3m M109A7 artillery contract for producing and fielding military vehicles, signalling an economic boost for several communities across the US.

BAE Systems Land and Armaments LP, based in York, Pennsylvania, has secured a contract from the US Department of Defense for the production of the M109A7 self-propelled artillery system and M992A3 support vehicles and their associated fielding kits. This deal reveals BAE Systems's role in advancing US military capabilities.

The US Army most recently placed a $418m order with BAE Systems in January 2024 for the purchase of additional M109A7 Paladin self-propelled howitzers and M992A3 ammunition carriers, with completion anticipated by January 2029.

According to GlobalData’s current statistics from its 'US Defense Market 2023-2028' report, the US Army has 247 M109A7 self-propelled artillery systems and M992A3 support vehicles in its fleet.

The contract, awarded without competitive bidding, will see work distributed across five states: Pennsylvania, Michigan, South Carolina, Oklahoma, and Alabama. Specifically, the towns of York, Sterling Heights, Aiken, Elgin, and Anniston will see increased industrial activity as BAE Systems ramps up production to meet the contract’s requirements. The project is expected to be completed by 31 January 2029.

The M109A7 and M992A3 vehicles, integral to the US Army’s armoured brigade combat teams, represent tracked combat vehicle technology, combining mobility and firepower.

York, Pennsylvania, is the primary location for BAE Systems’ operations. The location in Sterling Heights, Michigan, will experience an economic boost while the Army Contracting Command in Detroit Arsenal, Michigan, oversees the contract.

BAE Systems’s ability to secure this contract reflects its commitment to supporting US defence capabilities.

BAE Systems will account for a 43.4% share of the artillery systems market in North America. The company’s revenue forecast from artillery programmes is anticipated to be $8.2bn over the 2023–2033 period, owing to its contracts for M109A7 Paladin 155mm, among others, according to GlobalData’s 'The Global Artillery Systems Market 2023-2033' report.