March 24, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
WASHINGTON: While the cancelation of the biennial Farnborough Air Show due to the COVID-19 pandemic may not have an immediate impact on the bottom lines of aerospace firms in the defense sector, the decision to close one of the world's top two airshows is yet another harbinger of pending upheaval in the overall market, analysts say.
In particular, it deprives US firms of publicity abroad and highly valuable face-time with customers and potential customers from foreign governments.
“Things like Farnborough are important to US aerospace companies because they help to facilitate sales and marketing,” said Todd Harrison, director of the Aerospace Security Project at the Center for Strategic and International Studies (CSIS). “It's traditionally been a place where you show off your latest technology and latest systems, but it's also where you finalize deals that have been in the works for a while. And so, some of that can still happen, but some of it may not happen.”
Richard Aboulafia, a veteran aircraft industry analyst at Teal Group, echoed: “It's just a reflection of a sad reality: economic time has simply come to a halt for our industry and for others. That means fewer big opportunities to meet clients, advertise products and capabilities, share information, and look for opportunities. Big air shows are essential for these, but here we are.”
The Farnborough Air Show — which takes place south of London — registered representatives from 96 countries in 2018, and some logged $192 billion in orders and contract commitments. The cancelation of the 2020 show, slated for July 20-24, was announced today.
“I don't see the cancellation of Farnborough as a big blow to defense contractors. It is generally a way of raising their profile, but has no immediate impact on their business prospects,” said Phil Finnegan, Teal Group's director of corporate analysis.
That said, Finnegan and a number other analysts agreed, the aerospace market is in for a rough ride — and not just on the commercial side as airlines see their profits for 2020 nosediving, making it increasingly unlikely that they will invest in new planes.
“Looking ahead, defense acquisition is in uncharted territory. Near- and far-term impacts of Coronavirus evolve daily,” Air Force acquisition head Will Roper said this afternoon. “As we complete our first week of response, our teams navigated potential work stoppages, changing local and state directives, halted supply chains, and gearing up to support any national Defense Production Act requirements.”
The Defense Production Act, which allows the government to order companies to boost production or produce new things, was invoked last week by President Donald Trump.
Finnegan said “the biggest threat to defense contractors will come to those with significant commercial aerospace operations. The cash flow drain from those operations potentially could hurt them.
“It also reiterates the importance of maintaining a balance in operations,” he added. “Obviously, in recent years commercial aerospace has offered greater growth and potentially high profit margins. This crisis reiterates the importance of a diversified approach to defense and aerospace to take advantage of the stability of the defense market in a crisis.”
Indeed, several other long-time industry analysts said that DoD may face price hikes as firms try to shift the costs of commercial overhead to the defense contracts — especially for spare parts.
Further, Harrison noted, governments around the world are going to be cash-strapped and likely loathe to make new commitments to large buys of new fighter jets or drones. According to the latest report from the Aerospace Industries Association, US aerospace and defense exports in 2018 amounted to $151 billion: civil aerospace accounted for the majority with $131.5 billion; defense products the remaining $19.5 billion.
“So, Farnborough may not be the reason that sales go down, It's more of a symptom of the fact that there just aren't going to be as many opportunities for a while,” he said.
https://breakingdefense.com/2020/03/covid-19-farnborough-cancelation-another-blow-for-defense-biz
April 24, 2024 | International, Aerospace
The decision marks the service’s most significant step yet as it aims to create a series of drones using autonomous software to fly alongside piloted jets.
August 14, 2020 | International, Aerospace
Huntsville, Ala., August 12, 2020 - Today, Boeing [NYSE: BA] submitted its offer to the U.S. Missile Defense Agency for the Next Generation Interceptor (NGI) competition, proposing a design that leverages the company's more than 60-year track record and expertise in strategic missile and weapon systems. “Boeing's NGI proposal delivers unmatched performance, affordability and reliability for the nation and the warfighter,” said Norm Tew, Missile and Weapon Systems vice president and general manager, and Huntsville site senior executive. “Building upon our prior investments and proven technologies, our innovative proposal offers a creative, compelling and game-changing technical approach to outpace, out-innovate, deter and defeat rapidly evolving advanced threats.” If selected, Boeing will utilize its proven capabilities along with a best-of-industry team to ensure its unique offering is delivered to the warfighter on time. “Boeing is well-positioned to deliver innovative solutions that greatly expand this key missile defense capability, ever focused on supporting the warfighter,” said Tew. “We are leveraging our unparalleled mission knowledge to design, develop and deliver a low-risk, highly-effective solution for the MDA.” The NGI will be used to maintain ready deterrence and ensure the continued protection of the U.S. homeland from intercontinental ballistic missiles. A contract award is expected later this year. For more information on Boeing's NGI offering, visit http://www.boeing.com/defense/missile-defense/ngi. Follow us on Twitter: @BoeingDefense and @BoeingSpace. # # # Contact Megan Gessner Defense, Space & Security Mobile: +1 256-640-3036 Megan.Gessner@Boeing.com Jerry Drelling Defense, Space & Security Mobile: +1 714-318-7594 Jerry.a.Drelling@Boeing.com The views expressed are those of The Boeing Company and do not constitute an endorsement by the Missile Defense Agency (MDA). View source version on Boeing Newsroom: https://boeing.mediaroom.com/2020-08-12-Boeing-Delivers-Next-Generation-Interceptor-Proposal-to-the-U-S-Missile-Defense-Agency
March 12, 2024 | International, Naval
The Group and the Qatar Emiri Naval Forces signed a Memorandum of Understanding in Doha.