March 10, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

Coronavirus shaking up America’s defense industry

By: Joe Gould and Valerie Insinna

WASHINGTON ― The U.S. aerospace and defense sector is feeling the impact of the coronavirus, with companies limiting travel, defense trade events scuttled and contingency planning underway.

As stocks fell sharply Monday on a combination of coronavirus fears and plunging oil prices, defense firms were girding for the worst and looking to the White House for guidance. The comments came days after spread of the coronavirus forced the weeklong closure of two F-35 related facilities in Italy and Japan―a sign the outbreak had begun to impact operations within the American defense industrial base.

“The normal ways of doing business are definitely going to change,” said Aerospace Industries Association CEO Eric Fanning. “We're trying to get to the place where we're not reacting on a day-to-day basis to what's happening and getting in front of some of these things and maybe making some proactive decisions. But everyone is kind of looking to everyone else to take the lead on how to address this.”

Lockheed, Raytheon and Honeywell were among dozens of companies that pulled out of last month's Singapore Air Show, which is typically the largest defense trade show in Asia―and SXSW, a show AIA participates in, was cancelled. The two offer a glimpse into how fears of corona virus could impact other defense trade shows and conferences.

“It felt like a ghost town. It definitely was a strange experience,” Fanning said about the Singapore conference.

While it's easy to overstate the importance of trade shows in cementing major deals, the deals announced at the shows are often worked out in advance, Fanning said. Still, the shows are still valuable for face-to-face networking between international defense officials and industry.

As of Monday, the National Defense Industrial Association still planned to hold its Special Operations Forces Industry Conference in Tampa, Fla., this May. Its 2020 Pacific Operational Science and Technology Conference in Honolulu was ongoing this week, with more than 700 attendees, a spokeswoman said.

At least one major defense firm, Boeing, has limited its employees to “business-essential” travel, and it has been rescheduling some events, reducing face-to-face meetings in favor of virtual meetings, enabling telecommuting when possible.

“These measures are temporary and aimed to prevent the spread of the virus, shorten its impact and ensure the health and safety of our employees as well as the general public," a Boeing spokesman said.

The virus has infected more than 110,000 people worldwide, and Italy on Sunday followed China's lead in quarantining a big swath of its country in hopes of corralling the spread. That sparked more fears in the financial markets that quarantines would snarl supply chains for companies even more than they already have.

While COVID-19's long term impacts on the defense aerospace industry may take time to manifest, they could be complicated by the uncertainty of the financial market and ongoing trade wars with China, according to Fanning and others.

“Supply chains are global, they're inter-related, they're incredibly complex. Having real good situational awareness into them is difficult to begin with, then you add any instability on top of it, it gets harder. And this definitely is added to that,” Fanning said.

The new coronavirus is now spreading on every continent except Antarctica and hurting consumer spending, industrial production, and travel.

As COVID-19 spreads around the world, many investors feel helpless in trying to estimate how much it will hurt the economy and corporate profits, and the easiest response to such uncertainty may be to get out. After initially taking an optimistic view on the virus — hoping that it would remain mostly in China and cause just a short-term disruption — investors are realizing they likely woefully underestimated it.

On Monday, the Dow Jones U.S. Aerospace & Defense Index was down 26 percent over the last month, lagging the Dow Jones Industrial Average, which was down 18 percent.

“Defense should do relatively better [than consumer sectors], but it's not gonna be immune,” said Byron Callan, a policy research expert at Capital Alpha Partners. “It's gonna catch a mild fever where, you know, there are gonna be other parts of the U.S. economy that are gonna be in a critical situation."

“Buy-America” regulations and other controls mean the U.S. defense industry's supply chains may be less susceptible to disruption than some consumer sectors, where reliance on China-made components is more widespread―and few, if any supply chains are as globally linked as the F-35's, said U.S. Chamber of Commerce's Defense and Aerospace Export Council's president, Keith Webster.

“I would say in the U.S. defense sector's supply chain is less vulnerable than maybe a product in the commercial sector, but we'll have to see,” Webster said. “If this continues across the F-35 partner nations, with their industrial sharing, one could see an impact.”

On the flip side, China's weeks-long factory closures could eventually see parallels in the U.S., if the virus is not quickly contained. White collar employees may be able to telecommute, but if skilled laborers are forced to stay home, that could mean problems for the primes and their lower-tier suppliers.

“Are there parallels to China in the U.S.? We don't know,” Webster said. “The first step is containment, and the next step is mitigation. China went into mitigation very quickly, which is keeping everybody home. We're just beginning to see that thought process here.”

Short of factory closings, factory workers staying home for school closures or to care for sick relatives could trigger work slow downs, particularly at the lower tiers of the supply chain, especially the ones that rely on smaller pools of workers. Those companies could suffer too if they rely on the commercial side of the aerospace sector, which is expected to be harder hit, Callan said.

“You can see the ramifications on the pace of work, but it's not like the airline industry or the cruise ship industry where all of a sudden none of your customers show up,” Callan said, adding: “There could be a cascading effect from some commercial aerospace. Again, it's at very, very small level, but it's still a factor.”

The Associated Press and Aaron Mehta contributed to this report.

https://www.defensenews.com/congress/2020/03/09/coronavirus-shaking-up-americas-defense-industry/

On the same subject

December 18, 2018 | Local, Aerospace, C4ISR

Maxar's MDA and Orbital Insight Announce Expanded SAR Satellite Imagery Agreement
Orbital Insight will use MDA high-resolution imagery to strengthen oil inventory product RICHMOND, BC and PALO ALTO, CA, Dec. 17, 2018 /CNW/ - MDA, a Maxar Technologies company (NYSE: MAXR) (TSX: MAXR), and Orbital Insight, a leading provider of geospatial analytics, today announced the latest agreement providing new datasets for Orbital Insight's product offerings. MDA will provide high-resolution imagery from its RADARSAT-2 synthetic aperture radar (SAR) satellite to Orbital Insight, which will process and transform the data into actionable intelligence for the energy industry. "Building on an already strong relationship with a second Orbital Insight contract award, MDA will provide valuable insight into energy supply chains by enabling timely, reliable imaging of global oil storage sites, regardless of cloud cover," said Mike Greenley, group president of MDA. "This solution reinforces the unique and powerful combination of RADARSAT-2's large imaging capacity and timely data delivery, with Orbital Insight's geospatial analytics capabilities, to grow the market for information derived from SAR imagery." MDA's RADARSAT-2 has global monitoring capabilities, including a large collection capacity and high-resolution radar imaging. The satellite acquires data regardless of light or weather conditions, due to its active imaging mechanism. As a result, RADARSAT-2 provides an accurate and reliable source of information about ground activity such as changes in oil tank inventories. Orbital Insight will use the imagery to create oil inventory information that is incorporated into its energy products, which include the Global Geospatial Crude Index, a single number that objectively captures global crude inventory insights on a daily basis. Orbital Insight's customers use the Global Geospatial Crude Index to make economic decisions with confidence in global energy markets. "Having access to cutting-edge datasets strengthens our product offerings, so we're pleased to deepen our relationship with MDA as a key imagery provider," said Dr. James Crawford, founder and CEO of Orbital Insight. "SAR imagery is valuable because it provides information even if conditions on the ground aren't visible due to weather or lighting. Expanding this partnership delivers direct customer value." This new contract expands Orbital Insight's relationship with Maxar Technologies. The geospatial analytics firm also has a multi-year partnership with DigitalGlobe focused on high-resolution electro-optical satellite imagery and DigitalGlobe's Geospatial Big Data platform (GBDX). Orbital Insight refines its analytic capabilities using DigitalGlobe's satellite imagery at petabyte-scale on GBDX, revealing insights for industry use cases such as estimating harvest yields, making more accurate retail predictions, and monitoring global energy and natural resource markets. About MDA MDA is an internationally recognized leader in space robotics, space sensors, satellite payloads, antennas and subsystems, surveillance and intelligence systems, defence and maritime systems, and geospatial radar imagery. MDA's extensive space expertise and heritage translates into mission-critical defence and commercial applications that include multi-platform command, control and surveillance systems, aeronautical information systems, land administration systems and terrestrial robotics. MDA is also a leading supplier of actionable mission-critical information and insights derived from multiple data sources. Founded in 1969, MDA is recognized as one of Canada's most successful technology ventures with locations in Richmond, Ottawa, Brampton, Montreal, Halifax and the United Kingdom. MDA is a Maxar Technologies company (TSX: MAXR; NYSE: MAXR). For more information, visit www.mdacorporation.com. About Maxar Technologies As a global leader of advanced space technology solutions, Maxar Technologies (formerly MacDonald, Dettwiler and Associates) is at the nexus of the new space economy, developing and sustaining the infrastructure and delivering the information, services, systems that unlock the promise of space for commercial and government markets. As a trusted partner, Maxar Technologies provides vertically integrated capabilities and expertise including satellites, Earth imagery, robotics, geospatial data and analytics to help customers anticipate and address their most complex mission-critical challenges with confidence. With more than 6,500 employees in over 30 global locations, the Maxar Technologies portfolio of commercial space brands includes MDA, SSL, DigitalGlobe and Radiant Solutions. Every day, billions of people rely on Maxar to communicate, share information and data, and deliver insights that Build a Better World. Maxar trades on the Toronto Stock Exchange and New York Stock Exchange as MAXR. For more information, visit www.maxar.com. About Orbital Insight Orbital Insight develops geospatial analytics to help its clients unlock societal and economic trends at a global scale. The company works with petabytes of geospatial data, including imagery from satellites, drones and other sources. Using computer vision and machine learning technologies, it processes and transforms this data to enable businesses, governments and NGOs to make better decisions. Learn why Fast Company voted Orbital Insight one of the most innovative companies of 2017 and 2018 at www.orbitalinsight.com. Forward-Looking Statements Certain statements and other information included in this release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws. Statements including words such as "may", "will", "could", "should", "would", "plan", "potential", "intend", "anticipate", "believe", "estimate" or "expect" and other words, terms and phrases of similar meaning are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties, as well as other statements referring to or including forward-looking information included in this release. Forward-looking statements are subject to various risks and uncertainties which could cause actual results to differ materially from the anticipated results or expectations expressed in this release. As a result, although management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The risks that could cause actual results to differ materially from current expectations include, but are not limited to, the risk factors and other disclosures about the Company and its business included in the Company's continuous disclosure materials filed from time to time with Canadian and U.S. securities regulatory authorities, which are available online under the Company's SEDAR profile at www.sedar.com, under the Company's EDGAR profile at www.sec.gov or on the Company's website at www.maxar.com. The forward-looking statements contained in this release are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of this release or other specified date and speak only as of such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this release as a result of new information or future events, except as may be required under applicable securities legislation. Contact Wendy Keyzer | MDA Media Contact | 1-604-231-2743 | wendy.keyzer@mdacorporation.com Jason Gursky | Maxar Investor Relations | 1-303-684-2207 | jason.gursky@maxar.com SOURCE Maxar Technologies Ltd. Related Links www.maxar.com https://www.newswire.ca/news-releases/maxars-mda-and-orbital-insight-announce-expanded-sar-satellite-imagery-agreement-702924451.html
August 20, 2020 | Local, Aerospace

SkyAlyne announces pan-Canadian team of experts for FAcT program
SkyAlyne, a partnership between Canadian aviation and defence companies CAE and KF Aerospace, has officially unveiled its expanded team of strategic subcontractors to pursue the Royal Canadian Air Force's (RCAF) Future Aircrew Training (FAcT) program. SkyAlyne is a qualified supplier for the FAcT program. Canadian-based companies ATCO Frontec, Bluedrop Training and Simulation, Canadian Base Operators, Canadian Helicopters, and SERCO Canada will add considerable expertise, experience and Canadian content to SkyAlyne's bid. PAL Aerospace is a notable new addition to the SkyAlyne team, bringing unparalleled Canadian experience in airborne surveillance and intelligence operations, sensor operator training, mission systems development and aircraft modification capabilities. The SkyAlyne team collectively employs more than 14,000 Canadians and operates in every region of Canada — from coast to coast to coast. “We are pleased to officially announce our pan-Canadian team of experienced partners,” said SkyAlyne board chair Tracy Medve. “Our goal is to work with the Royal Canadian Air Force to continue providing a world-class aircrew training program built by Canadians for Canadians. These partnerships will strengthen SkyAlyne's position and help us move towards our objective to retain this crucial military capability in Canada.” As the only Canadian-founded and Canadian-based qualified supplier competing for the FAcT program, SkyAlyne has unique experience and expertise in military pilot and aircrew training specifically for the RCAF. SkyAlyne's parent companies – CAE and KF Aerospace – currently deliver all phases of pilot training for the Royal Canadian Air Force through the NATO Flying Training in Canada (NFTC) program based in Moose Jaw, Sask./Cold Lake, Alta., and the Contracted Flying Training and Support (CFTS) program based in Southport, Man., respectively. The subcontractors announced as part of the SkyAlyne team have extensive experience working with the RCAF. Most also currently support the existing training programs managed by CAE and KF Aerospace. “This agreement further ensures that the FAcT program benefits from the very latest Canadian expertise and innovation in aircrew training,” said SkyAlyne president France Hébert. “If selected, SkyAlyne will train the next generation of Royal Canadian Air Force airwomen and airmen while helping grow Canadian small- and medium-sized businesses as well as local and Indigenous communities. The selection of the SkyAlyne team would be a win-win for the Royal Canadian Air Force and for the Canadian aerospace industry.” https://www.skiesmag.com/press-releases/skyalyne-announces-pan-canadian-team-of-experts-for-fact-program
January 17, 2019 | Local, Aerospace, Naval, Land

Canadian military falling well short of its target for recruiting women
Murray Brewster · CBC News New statistics also show efforts to bring in more Indigenous, visible minority recruits failing The Canadian military has barely moved the needle on its ambitious plan to recruit more women, just over a year after the Liberal government introduced its gender-focused defence policy, new figures reveal. The stated intention of Chief of the Defence Staff Gen. Jonathan Vance was to have women make up 25 per cent of the Armed Forces by 2025-26. Statistics released by the Office of the Chief of Military Personnel show that while the number of female recruits coming through the door has increased slightly, it has not been enough to boost overall representation. As of the end of April, women made up only 15.4 per cent of both the combined regular and reserve forces. The story is the same for Indigenous Canadians and visible minorities — those recruitment numbers remain just as anemic as they have been for several years. Indigenous Canadians make up about 2.8 per cent of the Armed Forces; DND has set a goal of getting that share up to 3.5 per cent. Visible minorities make up 8.2 per cent; the target percentage is 11.8. But the military and the Liberal government have more political capital invested in the effort to get more women into uniform. It's central to Prime Minister Justin Trudeau's mantra of gender equality, and to Canada's desire to put women at the heart of a reformed international peacekeeping system. The drive to recruit more women comes as the military attempts to overhaul its culture in the wake of a damning report in 2015 by retired Supreme Court justice Marie Deschamps, who said a "sexualized culture" within the military was behind an endemic problem with sexual harassment and misconduct. Female recruitment picking up — but slowly There were 860 women enrolled in the military in the last fiscal year, which ended on March 31 — an increase of eight per cent over the previous year. It's not enough, said the chief of military personnel. "Those are still not meeting the number we need to have in order to meet the 25 per cent target and we're conscious of that," Lt.-Gen. Chuck Lamarre told CBC News in an interview. The slow pace of female recruitment has forced senior brass to take more direct control, he said. "We recognize it's going to take a much more disciplined approach, a much more targeted approach to go get more women, more visible minority and more Aboriginal folks to come join the Canadian Armed Forces," said Lamarre, who insisted the Armed Forces can still hit the target, which was first established in early 2016. The direction from Vance back then had been to increase the representation of women in the forces by one per cent per year over a decade. The new statistics show the military has seen healthy increases in the number of women applying to be officers, or to join the navy or air force. But National Defence is having a harder time convincing women to join the army, and to become non-commissioned members of the rank and file. Defence Minister Harjit Sajjan said it will take time, but there signs of change, notably the desire of women to become officers and leaders, a cultural shift that the DesChamps report said is necessary. "As time goes on, I am confident we will be successful," Sajjan said in a conference call with reporters Tuesday morning from Vietnam. "We are very happy that we are recruiting women into leadership roles." Lamarre said he believes the military is fighting against perceptions about the kind of career being offered. "People have a tendency to self-select out before they give it a shot, and I think that's a mistake," he said, pointing to the military's struggle to get women to consider signing up for trades such as aircraft, vehicle and maritime mechanics. "We are attracting more women into the officer corps, but I think we need to broaden that even more. Part of it is demystifying some of those occupations. Some of them look to be hard and exclusively centred towards men. That's not the case at all. We have some great examples of women who are operating in every occupation." Military's image problem persists Others — DesChamps among them — argue that the perception of the military as a tough place to be a woman hasn't gone away. Despite the military's high-profile campaign to stamp out misconduct — known as Operation Honour — and the increasing number of sexual assault cases being tried in the military justice system, many say that little has changed when it comes to the macho nature of military culture. "In the last three years, in my opinion, more could have been done" to stop harassment and make the military a more welcoming career choice for women, Deschamps told the Senate defence committee last week. "What I have seen is, not a lot of progress has been made." The federal government has faced two class-action lawsuits launched by survivors of sexual assault and misconduct in the military. The cases entered settlement discussions last winter after it was revealed government lawyers filed a statement of defence that said National Defence "does not owe members of the Canadian Armed Forces any duty to protect them from sexual harassment and assault." https://www.cbc.ca/news/politics/canadian-military-falling-well-short-of-its-target-for-recruiting-women-1.4691356

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