Back to news

May 22, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

French defense industry plays catch-up as lockdown partially lifts

By:

PARIS — As France slowly emerges from an almost complete industry shutdown imposed March 16 in response to the COVID-19 pandemic, defense company executives are considering their next steps.

Stephane Mayer, Eric Trappier and Herve Guillou — respectively presidents of the groups of French industries for land and air-land (GICAT), air and space (GIFAS), and naval (GICAN) systems — were witnesses at an April 23 hearing by the National Assembly's Defence Committee. They said that despite the partial return of employees to work, the supply chain is still experiencing problems.

The three industry leaders explained that following discussions with unions and the implementation of modifications in the workplace that enable employees to work while maintaining a distance of at least 1 meter between each other, about 30 percent of the workforce on production sites was back by April 23. Those able to work from home are doing so, they added.

More employees returned to work on May 11 when the lockdown was eased, but personnel who can continue to work from home are being urged to do, they said. Meanwhile, shifts are being modified to ensure workers don't arrive and leave at the same time, they added.

However, all three agreed that the supply chain had been interrupted, most notably in the aeronautical sector because of its dual military-civilian role and the near-total halt in air traffic, which negatively affected imports.

They explained that during the lockdown, defense industry leaders and the French procurement office DGA jointly set out priorities for programs and established what activities must be maintained to ensure the military continues its missions within France and in foreign theaters.

How are exports performing?

All three were also unanimous in their analysis that the French defense sector could take a hit in the export market, noting that German companies never completely stopped their activities; China was quick to reconnect with potential export clients; and the American defense sector benefits both from the continuation of much of its production capacity and massive support from the federal government.

This was later repeated by Guillou at a video conference organized this week by the Foundation for Strategic Research think tank.

“None of us can survive unless we have 50 percent of our order intake from the export market," Guillou said. "Even if the French market returns to normal, we still have that 50 percent export segment to worry about. If we want to remain competitive on the world export market, keeping in mind that the Chinese ramped up before we did, that the Russians, Germans and Dutch never stopped, we will have to restore our competitivity extremely quickly ... to stay in the race and not lose a part of this market forever.”

He also stressed that the need to catch up is a major concern of the French defense industry.

What about the supply chain?

The supply chain in France is largely made up of small and medium-sized enterprises. Eric Beranger, CEO of European missile-maker MBDA, told French Armed Forces Minister Florence Parly on May 6 that some of the 1,200 French suppliers that work for the company are now very fragile due to the developing economic crisis.

Guillou remarked during the video conference that the “terrific solidarity” among the supply chain and subcontractors, as well the prime contractors in the naval sector, is something he'd never come across in his 40-year career. But he added that the small and medium-sized enterprises serving the aeronautical sector are suffering more.

The Armed Forces Ministry began slowly ramping up on May 7 based on two principles: preserving the health of staff and their families (all personnel, civilian or military, have been given masks, which must be worn by those who work in confined spaces such as workshops, restaurants or vehicles); and continuing with the ministry's essential mission. This includes programs meant to keep fielded weapons and equipment in operational condition, but it also concerns the delivery of new materials.

“The reversibility of the procedures means that were the epidemic to break-out again within the ministry we would be able to handle it,” a May 7 ministry statement said.

https://www.defensenews.com/industry/2020/05/21/french-defense-industry-plays-catch-up-as-lockdown-partially-lifts/

On the same subject

  • US Air Force nuclear, space programs take hit in border wall reprogramming

    May 14, 2019 | International, Aerospace

    US Air Force nuclear, space programs take hit in border wall reprogramming

    By: Joe Gould , Aaron Mehta , and Valerie Insinna Correction: A previous version of this story contained an erroneous amount of reprogrammed money. The story has been updated to show the Pentagon reprogrammed $1.5 billion in FY19 funds. WASHINGTON — In the wake of the Pentagon reprogramming $1.5 billion in fiscal 2019 funds to support President Donald Trump's border wall with Mexico, only the U.S. Air Force appears to be losing money appropriated for equipment updates. The funding largely comes from personnel accounts in the Air Force, Navy and Army. But the Air Force is the only service to lose funding for hardware, including nuclear and conventional weapons, surveillance aircraft updates, and space programs. Overall, the Pentagon reprogrammed $818.465 million from FY19 defense appropriations, as well as $681.535 million from FY19 overseas contingency operations accounts, or OCO, to reach that $1.5 billion total. Lawmakers expressed concern that the use of military resources and manpower on the southern border will damage military readiness. However, acting Defense Secretary Patrick Shanahan said last week that ongoing deployments to support the Defense Department aren't doing so. “We've seen no degradation to readiness,” he told Senate appropriators May 8 at a defense budget hearing. “In fact, in some cases, it's enhanced our readiness because the troops get to perform certain functions.” Congressional Democrats and some Republicans have objected to the administration's use of this mechanism for funding the president's border wall, arguing it bypasses Congress' constitutional power of the purse. For the second time in recent weeks, the Pentagon ignored decades of precedent and carried out the transfer of funds without first consulting with the Senate Appropriations Committee. Sen. Patrick Leahy, the Senate Appropriations Committee's top Democrat, led a letter to Shanahan on May 10 to object to the latest instance, saying it harms hurricane cleanup at Tyndall Air Force Base, Florida. “We are dismayed that the Department has chosen to prioritize a political campaign promise over the disaster relief needs of our service members, given the finite reprogramming authority available," the lawmakers wrote. They noted that Shanahan's decision to notify Congress of the reprogramming came a day after he testified before the subpanel that oversees defense spending, and they wrote that they welcomed his views on “how you intend to repair the damaged relationship between the defense oversight committees and the [Defense] Department.” The letter was also signed by the Senate Armed Services Committee's top Democrat, Sen. Jack Reed, as well as Democratic Sens. Dick Durbin, Brian Schatz, Tom Udall , Patty Murray, Chris Murphy, Tammy Baldwin, Dianne Feinstein and Jon Tester. The reprogramming could be a topic at Shanahan's future confirmation hearing for the full job of defense secretary. A date for that hearing has not been set. Why the Air Force? About half of the non-OCO $818 million sum the Defense Department wants to redirect to the border comes from Air Force accounts, with space and missile programs taking the biggest hit. In total, the Pentagon expects the service to shear $402 million off its FY19 budget. About $210 million would be cut from Air Force space programs, specifically the Evolved Expandable Launch Vehicle program, which funds the use of rockets that send satellites and other capabilities into space. According to the reprogramming document, one rocket launch has been canceled due to the “Space Test Program (STP)-4 satellite provider termination of the Robotic Servicing of Geosynchronous Satellites (RSGS) spacecraft,” which is no longer necessary under the National Security Strategy. The Air Force's program for modernizing its E-3 Sentry early warning aircraft — more commonly called AWACS — also could lose funding that it no longer needs in FY19. The program, "Diminishing Manufacturing Sources Replacement of Avionics for Global Operations and Navigation,” or DRAGON, updates the E-3's avionics and brings it into compliance with future air traffic control requirements. But it is moving too slowly to use all of the funds it was appropriated in FY19, so the administration aims to have $57 million diverted for border protection. DRAGON has been delayed for two reasons, according to the reprogramming request. First, “aircraft have been available for programmed depot maintenance” at a slower-than-planned rate, dragging out the modification schedule. Additionally, DRAGON integration can only occur after AWACS are upgraded to the Block 40/45 configuration, and not all aircraft have gone through that process. The Air Force sees AWACS as a key part of its initial version of the Advanced Battle Management System, a family of systems that will provide ground surveillance across the different military services. Instead of retiring seven E-3s in FY18, Gen. Mike Holmes, head of Air Combat Command, said those planes could be upgraded with new sensors and communications gear. However, DRAGON isn't the only modernization effort for the Sentry that is moving slower than expected. In November, Bloomberg reported that the service terminated a contract with Boeing to upgrade the AWAC's characteristic disc-shaped radar due to repeated delays. Other Air Force programs that will take a hit include a planned upgrade to the Minuteman III intercontinental ballistic missile and the air-launched cruise missile programs. A number of top defense officials previously said nuclear modernization is the top priority for the Pentagon, including Ellen Lord, the department's acquisition head, who on May 1 told Congress: “We have weapons that are decades over what was supposed to be their useful life. And we are out of time. We need to continue on the path we're on, or we are going to fall behind and not have the nuclear deterrence that we enjoy today.” The document reprograms $24.3 million, of the $124.5 million appropriated in FY19, from the Minuteman III Launch Control Block Upgrade program; the document claims funds are available due to a “slip in the production schedule for FY 2020.” Meanwhile, $29.6 million — more than half of the $47.6 million appropriated for the air-launched cruise missile programs in FY19 — will be reprogrammed. The explanation for that change: “Funds are available due to contract savings from reduced guided missile flight controller modification requirements; and due to lack of executable requirements for Support Equipment and Low Cost Mods in FY 2019.” The reprogramming of funds for the Hellfire missile is also notable, as the Pentagon has identified a lack of munitions stockpiles as a major issue to address in its budget request. As an example, the FY20 budget called for the maximum rate of production possible on Hellfire: $730.8 million for 9,000 of the weapons. The document states that funds are “available due to contract savings from all variants that provide precision kill capabilities. Savings are attributed to negotiated lower unit costs per missile system.” https://www.defensenews.com/smr/federal-budget/2019/05/13/us-air-force-nuclear-space-programs-take-hit-in-border-wall-reprogramming/

  • Czech Air Force orders missile warning systems for its Mi-17 helos

    March 25, 2021 | International, Aerospace

    Czech Air Force orders missile warning systems for its Mi-17 helos

    Israel’s Bird Aerosystems will provide the Czech Air Force with missile warning technology for its Mi-17 helicopters, the company announced March 22.

  • Inside the alleged ‘boardroom coup’ at Aerojet Rocketdyne

    February 16, 2022 | International, Aerospace

    Inside the alleged ‘boardroom coup’ at Aerojet Rocketdyne

    Legal documents viewed by Breaking Defense reveal the company's board is split into warring factions, each seeking to oust the other's leader in the wake of Aerojet's failed merger with Lockheed Martin.

All news