Why Are Main Battle Tanks So Expensive?

When it comes to the cost of main battle tanks, there are several factors that contribute to their high price tag. Contrary to some beliefs, tanks are not inherently expensive but rather they reflect the integration of multiple high-quality components and stringent military standards. This article delves into the various reasons behind the high cost of these modern military machines.

The Myth of Price in War

Many believe that in the context of warfare, the price of a weapon system does not matter. However, this is a misconception, as the complexity and specifications of tanks are vastly different from their simpler predecessors.

Modern main battle tanks are significantly more complex, featuring advanced technologies such as fire control systems, composite armour, torsion bar suspension, thermal optics, and advanced computing systems. Their predecessor, World War II tanks, were much simpler, relying on basic human eyeballs for targeting and lacking technological advancements like thermal optics, night vision, and autoloading systems.

Reasons for High Costs

The high cost of modern main battle tanks can be attributed to several key factors:

Advanced Technology

Unlike other military systems, each enhancement to a tank's technology, whether in terms of engines, guns, armor, optics, or defensive technology, dramatically increases its cost. This is akin to adding features to a luxury sports car like a Porsche. Every little improvement brings a significant price hike, but these upgrades are necessary for the tank to perform its critical role in modern warfare.

Cost Plus Paradigm

The United States’ military bidding process often resembles a feeding frenzy for contractors due to the "Cost Plus" paradigm, which remunerates manufacturers based on the cost of the item plus a fixed percentage. This system incentivizes bidders to inflate their bids, leading to higher overall costs.

Shipping and Logistics

Shipping a 50-ton tank presents a significant challenge, as even with the best rates available, the shipping charges alone can be astronomical, often exceeding a lifetime's earnings.

Design and Fabrication Costs

Designing and fabricating a main battle tank involves a wide range of challenges, from harsh environmental conditions to stringent military specifications. The vehicle must be capable of operating in any environment, including extreme climates, and must withstand various types of enemy weapons. Additionally, the tank must be compatible with existing Army fuels and procedures, ensuring that it can be serviced in the field under difficult conditions.

These specifications are often beyond what civilian vehicles must meet, making the design and fabrication process inherently more expensive. Engineering and non-recurring expenses (NRE) are a huge part of any military project, including development, research, and design costs. For instance, developing new armor or sensors can be extremely costly and time-consuming.

Modern Sensors and Electronics

Modern tanks are equipped with an array of advanced sensors and electronics, many of which are at least 2 generations ahead of commercial counterparts. These sensors and systems are crucial for modern warfare, including defensive technologies like active defense electronics for shooting down RPGs and finding snipers. The cost of these components is substantial due to their advanced specifications and performance requirements.

Production and Manufacturing

Producing a main battle tank is not a straightforward process like mass-producing cars. A dedicated factory with proper security measures is required, capable of handling large, heavy parts and exotic materials such as depleted uranium for armor and specialized paint application procedures. The production lines for main battle tanks are not like those for consumer goods or automotive vehicles, lacking large-scale production runs. Instead, they typically produce a few thousand units, such as the U.S. having around 6,000 M1 tanks.

Due to this limited production volume, there are no significant economies of scale, leading to higher per-unit costs.

Conclusion

In summary, the high cost of main battle tanks is a direct result of their complex design, stringent military specifications, and the integration of advanced technologies. While tanks may be comparable in price to luxury vehicles like the Porsche, the integration of state-of-the-art systems and the need for custom manufacturing processes contribute to their substantial cost. Understanding these factors helps clarify why main battle tanks remain one of the most expensive weapon systems in modern military arsenals.