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April 14, 2022 | International, Aerospace, Naval, Land, C4ISR, Security

Europe's defense firms feel the squeeze of shortages, sanctions

The aftermath of a yearslong pandemic and a protracted land war in Europe is causing defense contractors to take a serious look at how to sustain their supply chains.

https://www.defensenews.com/industry/2022/04/11/europes-defense-firms-feel-the-squeeze-of-shortages-sanctions/

On the same subject

  • Elbit America awarded surveillance tower contract through U.S. Customs and Border Protection

    September 28, 2023 | International, C4ISR

    Elbit America awarded surveillance tower contract through U.S. Customs and Border Protection

    The surveillance towers will be comprised of multiple subsystems that allow U.S. Border Patrol Agents to continuously detect, identify, classify, and track items of interest along the nation's borders.

  • US defense industry pushes back on White House’s proposed $33B budget cut

    November 9, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    US defense industry pushes back on White House’s proposed $33B budget cut

    By: Joe Gould and Aaron Mehta WASHINGTON — The American defense industry is warning that defense cuts proposed by the Trump administration could undermine the Pentagon's efforts to modernize the military and address threats from Russia, China, Iran, North Korea and transnational terrorism. The Aerospace Industries Association, with the weight of the country's large and small defense firms behind it, issued a statement Thursday warning President Donald Trump and Congress “to provide steady and stable growth in defense spending in the fiscal year 2020 budget request and beyond” if they want to be able to meet those threats. The message comes as Democrats — expected to prioritize domestic spending and question record defense increases — won the House this week, and after White House budget director Mick Mulvaney ordered the Pentagon to prepare for a $700 billion national defense budget proposal for fiscal 2020. (For comparison's sake, the Pentagon is also continuing to prep the $733 billion budget it was expecting.) AIA argued in its statement that the last two years of budget growth have helped the Department of Defense and industry turn things around after years of war and budget instability, but not entirely. “As a result, military readiness is improving, and our industry is responding with more innovation and advanced capabilities,” the statement reads. “But the shortfalls of the last decade cannot be erased in the space of two years, and now the Administration has announced potential reductions in defense investment that could undermine the improvements that are just now materializing.” Last year, Defense Secretary Jim Mattis testified that the Pentagon needed 3 to 5 percent annual growth above inflation through 2023 to stay ahead of near-peer adversaries Russia and China. Congress responded with a $700 billion national defense budget for 2018 and $716 billion for 2019 — but also a $1 trillion tax cut that's grown the national deficit. National security adviser John Bolton said publicly, days before Tuesday's election, that the national debt is “an existential threat to society” and that Pentagon spending will have to “flatten out” in the near term. Deputy Secretary of Defense Patrick Shanahan had signaled in recent weeks that modernization programs like hypersonic weapons systems would take a hit if the budget falls. “It comes down to a judgment call, how fast do we modernize? And that's probably the biggest knob that we have to turn,” he said. Along similar lines, AIA argued that to achieve the Pentagon's National Defense Strategy — which "requires armed forces that are large and capable enough to meet multiple threats in multiple environments” — “we must continue to invest in the most effective technology and weapons we can provide.” “America's competitors and adversaries have made huge strides in their offensive and defensive capabilities, from submarines to cyberspace, and continue to develop advanced technology and sophisticated operational concepts,” the statement warns. Though it's unclear how sensitive the administration will be to this call, it has been vocal about its focus on the defense-industrial base in concert with Trump's emphasis on the American economy. A Trump-ordered study found roughly 300 gaps and vulnerabilities across America's network of defense suppliers; Pentagon officials are hopeful a third of those issues will be addressed in the next year. Whatever the administration does with its budget submission, it will be up to the new Congress to tweak it. Following the midterm elections, analysts have predictedlawmakers in next year's divided government will overcome gridlock to reach a budget deal that maintains flat defense spending. https://www.defensenews.com/industry/2018/11/08/us-defense-industry-pushes-back-on-white-houses-proposed-33b-budget-cut

  • US buys additional 248 JLTVs from Oshkosh

    July 6, 2020 | International, Land

    US buys additional 248 JLTVs from Oshkosh

    By: Aaron Mehta WASHINGTON — The U.S. government has placed a new $127 million order for 248 Joint Light Tactical Vehicles from Oshkosh, the company announced Wednesday. The award would provide JLTVs for the U.S. Army, Marine Corps and State Department. “The JLTV was designed to provide our troops with unmatched mission capabilities,” George Mansfield, vice president and general manager of joint programs for Oshkosh Defense, said in a statement. “And while adversaries, terrains, and tactics have all evolved immensely since the vehicle's conception, the JLTV's flexible design allows the light tactical vehicle fleet to evolve at a similar pace.” This contract is the third order placed in the last seven months for JLTV production. A $407.3 million package for 1,240 vehicles to the U.S. Marine Corps, Slovenia and Lithuania was awarded in February. In December, the company received a $803.9 million award for 2,721 vehicles for the American military and ally Montenegro. Oshkosh beat out Humvee-maker AM General and Lockheed Martin in 2015 to build the replacement for the Humvee for both the Army and the Marine Corps. The low-rate initial production contract was worth $6.7 billion, and the entire program is estimated to be worth $30 billion through 2024. Since a production contract was awarded in 2015, Oshkosh says it has delivered 7,500 total vehicles to the U.S. and partners abroad. In its fiscal 2021 budget request, the Army asked for $894.4 million to buy 1,920 JLTVs. However, that number is down from what had initially been projected by the service; as part of the “night court” process, designed to reprioritize the service's investments and projects, the Army is stretching its planned JLTV buy out in order to reinvest dollars to modernization priorities. https://www.defensenews.com/land/2020/07/01/us-buys-another-248-jltvs-from-oshkosh/

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