Back to news

January 2, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

Defense Spending In The Middle East Continues Strong Growth

In 2018, major fault lines developed in the relations between the Middle East's largest power, Saudi Arabia, and its Western allies. For decades, Riyadh has been one of the major buyers of European and U.S. defense equipment, but there is growing uneasiness about how Saudi Arabia has been using it. International pressure increases on Saudi-led conflict in Yemen Middle Eastern nations grow combat mass and capability Saudi Arabia's war in Yemen was already controversial, but ...

http://aviationweek.com/defense/defense-spending-middle-east-continues-strong-growth

On the same subject

  • Former Symantec boss takes over the Defense Innovation Unit

    September 25, 2018 | International, C4ISR

    Former Symantec boss takes over the Defense Innovation Unit

    By: Aaron Mehta WASHINGTON — Michael Brown spent two decades running companies in Silicon Valley, eventually rising to CEO of Symantec, one of the largest software companies in the world, with annual revenues of $4 billion and more than 10,000 employees. On Sept. 24, he starts a new job as the next leader of the Pentagon's Defense Innovation Unit. While it comes with a much smaller budget, in the range of $40 million, it's a job Brown believes he's stepping into at a critical time. “My fundamental view is we are in a technology race. We didn't ask to be in this, but we're in it,” Brown said in an exclusive interview with Defense News. “I'm concerned that if we don't recognize that we're in a race and take appropriate action, then we let China move forward and we don't put our best foot forward in terms of leading in these key technology areas.” Brown spent the last two years as a White House presidential innovation fellow with the Pentagon, meaning he's not coming into the world of defense cold with the DIU job. During that period he met Raj Shah, the previous DIU leader, as well as Mike Griffin, the Pentagon's undersecretary of defense for research and engineering, who now will be Brown's boss. Brown also co-authored a Pentagon study on China's influence in the U.S. tech scene, an experience that has influenced his views as he prepares to take over DIU. “One of the things I carry with me is I understand the motivation of companies, CEOs, investors because I've been working with these folks my whole life,” he said of his qualifications. Created in 2015 to be the Pentagon's outreach effort to Silicon Valley, DIU — until recentlyknown as the Defense innovation Unit Experimental — has gone through several high-profile iterations. It opened offices in Austin, Texas, and Cambridge, Massachusetts, but also worked through two leaders. It went from reporting directly to the secretary of defense to the Pentagon's undersecretary of defense for research and engineering. The group has also faced questions about its future from skeptical members of Congress, and resistance inside the building. The hiring of Mike Madsen to handle the office's Washington operations is expected to ease those concerns, but Brown acknowledged he would be spending time in Washington every few weeks to shore up internal and external support. Defense Secretary Jim Mattis and Griffin wanted a leader for the agency with a large commercial background, Brown said, “because that's the community we need to access.” Brown wants to create “the ideal exchange where we have access to all the leading technologies from whatever companies we want to work with on the supply side — and on the demand side we have the effective relationships with the Pentagon, throughout the military, so we can be select about what are the most interesting problems to work on in national security that have the greatest impact.” The China problem Brown's comments on China put him in line with the broader Trump administration, whose officials have repeatedly pointed to China as a competitor, and the Mattis-led Pentagon, which has warned of risk from China both as a military competitor and in influencing American supply chains. DIU, to Brown, has a specific role to play in that race: getting the Pentagon the best commercially available technology, and hence freeing up funding to invest in the military-only capabilities, such as hypersonics, needed to check Chinese ambitions. More nebulous but just as important for Brown is a new mission for DIU: doing outreach into the commercial tech community to explain the Pentagon's views on China, and why contributing to the departments efforts are worthwhile. Or as Brown puts it, “making sure the companies in these innovation hubs are aware of the technology race that is going on, so that they're not only viewing China as an economic opportunity but also seeing the geopolitical consequences. Being part of that debate is going to be an important role for DIU.” Brown said some of DIU's top priorities will include human systems engineering, information technology, cyber or advanced computing, autonomy, and artificial intelligence. He is also ordering a look at the various processes DIU uses to see if areas can be sped up, and whether other transaction authorities are being used to their full potential. He said he did not expect a significant restructuring of the office, but one priority is getting a human resources leader and new general counsel to smooth the transition of future hires. Capt. Sean Heritage, who has been acting as DIU interim head, will return to being the Navy lead for the office. The former CEO acknowledged that his background and high-level ties to the tech community may open doors that would be otherwise be shut (Brown was reportedly forced out by Symantec's board in 2016 due to company numbers, making him the third CEO to be removed by the company in the space of four years). He also envisions working with academic institutions located near the three DIU hubs to encourage a debate on the issue. Part of DIU's role is explaining to companies why they should support the department's efforts. Silicon Valley has a reputation as being hostile to the military — a reputation that has only increased in recent months following an employee-led pullout by Google of the department's Project Maven, an effort to incorporate AI into analyzing drone footage. Brown, however, said those concerns are largely “overblown,” noting the office is already in discussions with well over 500 different tech firms. “We haven't found there's a reluctance on the part of companies developing the technologies we're interested in working with the Pentagon,” he said. “They are interested in how DIU can help make that process easier for them.” Brown thinks he is the man to make that happen. “Contrary to what a lot of folks read or talk about with government, my experience is if you have good ideas and have persistence, you can make that happen.” https://www.defensenews.com/pentagon/2018/09/24/former-symantec-boss-takes-over-the-defense-innovation-unit

  • Baltic countries benefit from EMSA’s regional RPAS service for enhanced maritime surveillance

    April 13, 2021 | International, Aerospace, Naval

    Baltic countries benefit from EMSA’s regional RPAS service for enhanced maritime surveillance

    EMSA’s regional RPAS service for enhanced maritime surveillance in the Baltic Sea began this week under the coordination of the Estonian Police and Border Guar ...

  • The New Trend In Acquisitions: Mergers Of Equal But Different

    January 21, 2020 | International, Aerospace

    The New Trend In Acquisitions: Mergers Of Equal But Different

    Michael Bruno Woodward, Hexcel, United Technologies, Raytheon, L3 Technologies and Harris at first glance have relatively little in common, except they are mostly midsize suppliers and specialists primarily serving the aerospace and defense (A&D) market. Increasingly, that is exactly why they are pairing up—and if other recent deals are an indication, it could be one of the leading trends this year in A&D mergers and acquisitions (M&A). On Jan. 12, aircraft motion-control specialist Woodward and composites leader Hexcel proposed stock merger to create one of the largest independent A&D suppliers, with capabilities running from wing and engine parts to advanced materials used to make aircraft construction lighter. The companies have minimal sales overlap, which could help ease approval by antitrust regulators. The combined company, Woodward Hexcel, would hold key supplier positions on most major A&D programs, including: the Airbus A220, A320neo, A330neo and A350; the Boeing 737 MAX, 777X, 787 and Apache helicopter; Bombardier Global 7500; Embraer E-Jets E2; Gulfstream G500/600; and Lockheed Martin F-35 and CH-53. Perhaps more important for shareholders, the “merger of equals” between Woodward and Hexcel could become a lucrative stake. According to the companies, their combined revenue of $5.3 billion would place the new Woodward Hexcel sixth among major A&D suppliers (see graph). What is more, the combined company, which will be based in Fort Collins, Colorado, should generate about $1 billion in free cash flow—the proceeds used to fuel shareholder returns—in its first year. In turn, around $1.5 billion is expected to be sent to shareholders within 18 months of the deal's completion. The deal is expected to close in the third quarter of 2020. Initially, financial analysts who cover publicly traded A&D companies were surprised by the proposed combination. But tie-ups that see midsize specialists combining to provide greater portions of A&D systems and parts are likely to become more commonplace. Last summer, L3 Technologies and Harris paired to form L3Harris Technologies. By the summer of 2020, United Technologies and Raytheon are expected to close their own “merger of equals” to become Raytheon Technologies. “I think this deal is very similar to several other aerospace deals that we've seen the last 3-4 years,” Credit Suisse analyst Rob Spingarn says of Woodward Hexcel. “Right off the bat, it looks a lot like Harris and L3. If you line up the PowerPoint presentations from the two deals, they are almost mirror images of each other.” To that end, all of these companies have talked about increasing the amount of dollars spent on research and development (R&D). However, the so-called synergies from the combination of Raytheon Technologies are years off—assuming they occur at all—while rewards for shareholders will be almost immediate. The CEOs of Woodward and Hexcel assert that they will spend $250 million on R&D in the first full year after the deal closes, which according to analysts, is roughly in line with what they were going to spend separately. At the same time, the combined company expects to cut at least $125 million worth of recurring and redundant costs. Of course, each deal has its own criteria for justification: United Technologies looked to gain heft to fight off Airbus and Boeing supply-chain squeezes; Raytheon needed deeper pockets to fund defense technology plays; and L3 and Harris each wanted to become defense primes. Last but not least, Woodward and Hexcel CEOs say they see genuine opportunities to help commercial aviation become more sustainable through the lighter, more efficient design of aircraft and engines. A&D M&A consultants are preparing to release their year-end summaries for 2019, but dealmakers already are telling Aviation Week they expect a robust environment for M&A deals in 2020, albeit not universally across the industry. For instance, sub-tier commercial aviation suppliers like “mom and pop shops” will continue to be gobbled up, especially by private equity investors directly or through holding companies as they seek to form new middleweight suppliers. Defense technology specialists also remain hot targets, as evidenced by the mid-December announcement that government services heavyweight Leidos is buying boutique aircraft and defense systems provider Dynetics for $1.65 billion. But consolidation in space may take top billing amongst the bevy of startups funded by a venture capital surge in recent years, with major assets such as Maxar Technologies' MDA subsidiary being sold to private equity investors at the end of December. Space-sector combinations could be another major trend for 2020, according to Matt O'Connell, managing partner at Seraphim Capital—the firm that funded the buildup of GeoEye, now a core part of Maxar after MDA. “I think there are a lot of deals out there waiting to be done,” he says. https://aviationweek.com/air-transport/new-trend-acquisitions-mergers-equal-different?

All news