June 13, 2018 | International, Aerospace, Naval, Land, C4ISR
WASHINGTON — As priorities in Europe evolve, particularly with the threat of Russia growing more profound, industry partners are left to adapt. Defense News spoke to Kim Ernzen, vice president of land warfare systems in Raytheon Missile Systems, to find out the company's approach to meeting customer expectations.
EU and NATO cooperation on defense is evolving. As they work out roles, is it challenging for industry?
From an international or global footprint, we are looking to continue to expand in international marketspaces. As we look particularly to EU and NATO starting to cooperate more, the EU brings some capabilities to the table. Obviously NATO is typically backed more from the U.S. [But] it's how we merge the capabilities together so the fighting forces have what they need when they go into harm's way. From a U.S. defense industry perspective, we like to make sure we protect the latest and greatest. When we look to international, we work through the normal releasability channels to make sure we can release our products.
I think there is going to be increased opportunity, because the threats are continuing to evolve. From a pure RMS perspective, we're well positioned to support [combatting] those threats. We continue to work closely not only with the U.S.-based customer, but through them, the international partners to look at the capabilities they may need.
Missile defense remains a huge priority in Europe, but how have hybrid warfare tactics, particularly from Russia, influences defense strategies and as a result the investments?
As we as a nation look at how to pivot from urban warfare of the last two decades to what many would consider more traditional warfare, but with added complexities of things like cyberattacks, EW. So now you go into overmatch capability, a long-range standoff capability. Army is focused on how to get long-range precision fires that supports the [combatant commands] in the international footprints, being able to protect the European front against advancing Russia threats. And it's got to have that standup capability, they also have to be able to see further. From a company perspective, we're involved in the PRSM [program] — the new Long Range Precision Fire competition between us and Lockheed Martin. And we're also working to enhance the sighting capability on the vehicle, so they can see farther and identity threats sooner.
We see a lot of exercises in Europe. Does industry have enough of a seat at the table?
We don't necessarily engage one-on-one with the exercising activities that go on; we'll get feedback through customer communities. This is something we talk with our customers about continually: the more we can be engaged, the more we can bring to bear, whether company investments, a spin on the product; the more we can partner with the customer community, sooner, the better it is for them and us as well. We just haven't necessarily always done that.
We've seen a great deal of emphasis on increased defense spending of our European allies. Have you seen a bump up? Or if not, where do you see them focusing in on in terms of spending?
We have seen a modest increase, particularly across the munitions fronts. Everyone [is looking] in the cupboard drawer, wanting to make sure they have the right stockpiles should they need to go into any engagement with the enemy. We're also continuing to see internationally more system integrated solutions. Not just coming forward with a product, but how a system would work and operate so they can be more nimble in the battlefield. That's a transition we're seeing.
The FMS system can be painful to work through. Have their been improvements?
We need to look at [whether we] can start converting more programs to direct commercial sales, depending on where we're at in a lifecycle of a product, and what it is we're trying to protect or throttle. FMS is a slow an laborious process. It hinders industry from capitalizing on market opportunities. The more we can change the paradigm and partner with the government side to do more [direct sales], the more they will benefit long term because they get the volume to drive down prices, and allow us to recoup funds to invests in future technology. But there are challenges, because each branches has organizations that support foreign military sales. There's a balance.
As more and more countries seek indigenous capacities as well as a return on defense investments domestically, has the nature of partnership changed?
Part of partnering with some of these countries involves offset requirements. Often as we start to partner with indigenous capable industries, it used to be ok to [offer up] basic machining. But there is more pull for being able to put high levels of noble work into these countries. Some are more advanced in capabilities, and as we look to partner, how to do we strike that balance, leveraging some technology they may bring to bear, with what we're trying to keep domestically and protected? It's an interesting paradigm. And a tipping point with how U.S. industry deals with going international.
January 24, 2024 | International, Aerospace
The contract includes an option for a further 22 H145s for the Gendarmerie Nationale and a range of support and service solutions from training to spare parts, as well as...
September 14, 2022 | International, C4ISR
The sensors under development will integrate onto the Army's well-known HADES aerial ISR program, designed to conduct "deep" intelligence gathering and target tracking.
February 5, 2020 | International, Aerospace
By: Vivek Raghuvanshi NEW DELHI — India's defense budget for 2020-2021 will be $73.65 billion, the country government announced Saturday, but officials and analysts are warning the amount is unlikely to meet new demands for weapons purchases and military modernization, as India is set to spend about 90 percent if its defense funds on existing obligations. Of the total budget, $18.52 billion is for weapons purchases; $32.7 billion is for maintenance of the military's weapons inventory, pay and allowances, infrastructure, and recurring expenses; and $21.91 billion is for defense pensions. “The capital budget leaves no room for any big-ticket weapons purchase, as over 90 percent of the allocation capital funds will [be spent] for past [defense] contracts' committed liabilities," a senior Ministry of Defence official told Defense News. The limited procurement spending is expected to directly impact “Make in India" defense projects, a policy meant to boost the local economy under the ruling National Democratic Alliance government. “This also [leaves] no room for any major weapons purchases from U.S. at least for one to two years,” the MoD official added. India is slated to make a number of purchases through the U.S. Foreign Miltiary Sales program, including 22 MQ-9 Reaper (Predator B) drones for $2.6 billion; and additional six P-8I maritime surveillance aircraft for $1 billion; two Gulfstream 550 aircraft for intelligence, surveillance, target acquisition and reconnaissance for nearly $1 billion; and one unit of the National Advanced Surface-to-Air Missile System II for more than $1 billion. During at least the last two years, the Indian military has complained about a lack of funds for resolving existing liabilities. Amit Cowshish, a former financial adviser for acquisitions at the MoD, said the military will likely continue to face the challenge of preventing defaults on contractual payments. The senior MoD official told Defense News that due to the shortage of funds, at least a dozen pending defense contracts will experience delays. “The current $18.52 billion capital allocation is only [a] marginal increase from [the] previous year [capital] allocation of $18.02 billion [and] does not even adequately cover inflation costs.” The Indian Air Force is to receive $6.76 billion from the 2020-2021 budget, a drop from the previous year's $7.01 billion. The money is expected to go toward payments for orders of Rafale fighters from France and an S-400 missile system from Russia. The Indian Navy is to receive $4.56 billion, which is expected to help cover the cost of leasing a nuclear submarine and stealth frigates from Russia, as well as pay for warships from Indian companies. A Navy official said it is unlikely the service will be able to sign a contract for 24 MH-60R multirole helicopters for more than $2 billion from the U.S. next year. The Indian Army is to receive $5.06 billion to pay cover previous orders of wheeled and ultralight artillery guns, T-90 tanks, and ammunition. India's state-owned defense companies continue to receive 60 percent of defense-related business, with 30 percent going to overseas defense companies and 10 percent to domestic private defense firms. Another MoD official said the armed forces plan to focus on industry-funded defense projects under the government's “Make-II” category, which allows private companies to participate in the prototype development of weapons and platforms with a focus on import substitution, for which no government funding will be provided. https://www.defensenews.com/global/asia-pacific/2020/02/04/new-weapons-purchases-suffer-under-indias-latest-defense-budget