Occupied Jerusalem – Military procurement expenses for the Israeli army have skyrocketed by 1000% during the war on Gaza; the monthly spending on equipment, ammunition, missiles, and bombs reached approximately 12 billion shekels (3.3 billion dollars), equivalent to the annual budget allocated for military procurements of the occupation army.
According to the Israeli Ministry of Defense's data, nearly 200 local military companies support projects like "Merkava" and "Namer-NMR." Moreover, the ministry deals with 26,000 local and international suppliers within its records. During the war, the ministry's procurement and production department mobilized around 8,000 local suppliers to ensure supplies for the army.
These official figures concerning the procurement expenses for ammunition and military gear were revealed through an extensive interview conducted by Yedioth Ahronoth's economic correspondent with the head of the Ministry of Security's procurement and production administration, Zeev Landau, who assumed his position before the onset of "Operation Al-Quds" in October 2023.
The situation with the army's ammunition, missile, and military vehicle depots was far from ideal, witnessing shortages even in vehicles and equipment (Israeli Ministry of Security)
Concerns Over Ammunition Shortage
Landau discussed the economic significance of the military procurement expenses during the war on Gaza, touching on the shortage of essential equipment for reserve forces and the state of the military inventory in army warehouses on the eve of the war. He noted, "The situation of the warehouses was not ideal and is insufficient for a prolonged conflict."
The Israeli official expressed his concerns about the potential decrease in the weapon and ammunition stockpile in army warehouses, especially if the war was to continue for an extended period or if a comprehensive confrontation with Hezbollah on the northern front erupted.
The head of procurement and production at the Ministry of Security affirmed that "had it not been for American support and the necessary provisions to fill the gaps during the war, the military situation for the army would have been extremely difficult."
To address this shortage in the army's warehouses, Landau unveiled that teams from the Ministry of Security have been scouring the globe to purchase weapons and ammunition for the war on Gaza. He pointed out that these teams faced numerous difficulties in finalizing deals, primarily due to some international companies and countries insisting on the condition that Israel not use the weapons against civilians and innocent people.
Emergency units established within the Israeli Ministry of Security to track equipment shortages for reserve forces during the war on Gaza (Israeli Ministry of Security)
Dependence on America
Landau acknowledged that the war on Gaza exposed the extent of Israel's reliance and dependence almost entirely on what he described as "goodwill and policies of the White House" and air shipments of weapons from America. According to reports, Washington sent over 230 cargo planes and 20 ships loaded with weapons to Israel since the war's beginning.
Based on the pace at which American transport planes and ships loaded with military equipment arrived in Israel, Landau says, "The condition of the army's stockpiles, which were not ideal on the eve of the war, at the very least, improved amid the Israeli security assumption that Hamas was deterred and a long, severe war was not anticipated."
Discussing the airlifts of military equipment from Washington since the first day of the war, Landau remarks, "It has created a difficult sense among the Israeli public that the army relies heavily on America, and did not possess sufficient supplies of vital weapons. We have always been and will remain dependent on the Americans. There are things we buy from them with aid money, such as planes and vehicles, but this reality must change."
Excessive Weapon Use
Landau recalled the State Comptroller's report from 2007, which warned of a shortage of military equipment and weapons in the army's depots and advised against shutting down ammunition production lines. The state must decide and define its necessary production lines, maintain, and support them.
Therefore, it's not surprising, according to Landau, that the Israeli army recently spoke of armaments economy and economizing the use of ammunition and missiles to preserve the stockpile for a potential comprehensive confrontation on the northern front.
The head of procurement and production at the Ministry of Security mentioned that the army indulged in using ammunition and missiles at the war's onset, saying, "In just the first week of the war, the air force dropped about 6,000 bombs on Gaza," a substantial number that equals the number of bombs the American air force used in an entire year across Afghanistan.
Weapon and military equipment shipments arrived in Israel to address the shortages in the stockpiles (Israeli Ministry of Security)
Who Does the Israeli Army Depend On?
Per Landau's viewpoint, the significant challenge facing the Ministry of Security is "to reduce the army's dependency on purchasing ammunition from abroad as much as possible, especially from America, in favor of expanding local production lines, and bolstering military and defense industries."
He also said, "Based on the experience of the war and the lessons learned regarding the status of the army's military depots, our goal for the day after is to achieve autonomy mainly in the field of aerial armaments and aircraft bombs, which have been entirely purchased from America. Reaching a state of independence will take two or three years of preparation not to depend on external sources for armament."
Adding that one of the objectives they're attempting to build with the defense industries is a mechanism to maintain the minimum orders they will require over time to keep a production line that is economical and independent, allowing the army to use weapons and ammunition intensively for two years without any shortage.
It is noteworthy that at the war's start, the Israeli civilian public supplied the reserve soldiers with donations, from underwear and socks to helmets and ceramic vests. However, Landau does not consider this a failure of the army's procurement department, attributing it to an increase in conscription among reserve forces, saying, "There has never been such a number in the army in any previous war, hence the civilian aid came forth."
The depots experienced a shortage in vehicles and military equipment (Israeli Ministry of Security)
A Month Equals a Year
The military procurement budget in normal times amounts to about 12 billion shekels (3.3 billion dollars) a year. However, Landau says, "Since the beginning of the war, we've witnessed a rise in military expenses. In the first month, we spent a budget equivalent to the annual budget, and so the spending continued at the same rate and value for the second and third months of the war as well."
Landau explains, "Since October 7, we have been buying tremendous amounts of weapons from all over the world because what was in the warehouses was not enough. Today, we still face the same dilemma of purchasing. However, we are now in a new phase, focusing more on maintenance and the procurement of spare parts and components for worn-out equipment, and for tanks and gear that were damaged and pulled out from the battle."
He elaborates on how Israel ended up almost completely depending on American ammunition and what can be done to pursue armed independence for the army, saying, "We learn from what happened over decades for the Israeli military and defense industry, where 80% of its production was dedicated to the army."
Hence Landau states, "We must keep the Israeli weapons and ammunition production lines working year-round, whether for the domestic market or increasing exports to global markets. This is the challenge the Israeli Ministry of Security faces today."
