December 18, 2024 | International, Land, C4ISR
DND warns availability of Canadian military equipment is dropping
Canadian Armed Forces equipment readiness continues to drop
June 13, 2019 | International, Other Defence
Heckler & Koch — maker of the Marine Corps M27 — is in dire straits
By Ian D'Costa
For decades, German arms giant Heckler & Koch has served as the gold standard for military and civilian weapons manufacturing — building revolutionary and oftentimes game-changing rifles, machine guns, grenade launchers, submachine guns and pistols for a variety of customers including special operations forces, conventional infantry units and law enforcement agencies.
After a lackluster 2018, reports indicate that H&K is now struggling to keep its head above water, with the hopes that boosting sales in FY2019 buys the company at least another year to come out of the red and fix the situation it's in.
The Tactical Wire recently reported that German business journals have already predicted the end for what was once one of the most powerful arms manufacturers in the world.
In fact, the situation is so bad that, as The Firearm Blog reported just last month, H&K employees jointly voted to increase weekly work hours without paid overtime, as well as nixed a one-off payment of 400 Euros per head for the month of July, so as to provide their beleaguered company some form of relief.
H&K's financial woes stem primarily from diminishing sales, so much so that FY2018 would have seen the company tank had it not been for “two bridging loans from an unnamed major shareholder.”
As the company's preexisting contracts with various international buyers are fulfilled, it has faced immeasurable difficulty generating new large-scale contracts with any of its products.
According to Neue Zürcher Zeitung, after KPMG conducted an audit of H&K in 2018, it was forced to insert a red flag warning that: “the lack of liquidity endangers the continued existence of Heckler & Koch." KPMG went on to state that the only way H&K would survive going forward is to generate a considerable bump in revenue over previous years, or face bankruptcy.
Earlier this year, H&K completed production and delivery of the M27 IAR (a derivative of the HK416) to the US Marine Corps. However, contracts with countries in the process of revamping their small arms arsenals, such as Portugal, have failed to materialize with these countries opting for weapons from other manufacturers.
2019 has also seen the imposition of a multi-million dollar fine on H&K by a German court after it was discovered that the company violated Germany's War Weapons Control Act through the illegal sales of rifles to Mexican states affected considerably by drug-trade violence.
H&K's hopes more than likely rest in securing a massive contract yet to be tendered by the German government for the long-term replacement of the German army's G36 assault rifles, another H&K product though one which didn't necessarily live up to the next-generation hype that earlier surrounded it.
Whether or not H&K will win the contract is a completely different question altogether, as it's also standard German defense procurement procedure to take into account the fiscal health and economic well being of the companies which have bid for larger contracts... and that's not looking too good for H&K.
It should also be noted that H&K is currently in the process of reequipping the French army with HK416 rifles to replace the FAMAS bullpup rifle platform with an overall mass order of over 93,000 units. The Norwegian government also contracted the company to supply HK416s to the Norwegian Armed Forces earlier this year.
However, that might not be enough to save H&K.
Should H&K lose out on the German G36 replacement contract, this could spell the end for the 71 year-old German small arms producer, and a potentially new beginning for a restructured company in its place.
On the same subject
-
-
January 31, 2019 | International, Aerospace
US Air Force eyes KC-46A aerial refuelling boom redesign
Pat Host, Everett, Washington - Jane's Defence Weekly Key Points The US Air Force is planning to redesign the KC-46A boom to better accommodate lighter aircraft The USAF agreed to pay for this upgrade as Boeing met its international standard The US Air Force (USAF) will redesign the problematic boom on the Boeing KC-46A Pegasus aerial refuelling tanker to better accommodate lighter aircraft such as the Fairchild-Republic A-10 Thunderbolt II. USAF Secretary Heather Wilson said on 24 January that the boom does not disconnect as well from lighter aircraft as it does with heavier aircraft. The service has identified an actuator fix that will make the boom a little more sensitive, and she believes it is likely that the A-10 is the only aircraft affected by this issue. The A-10 is a lighter aircraft compared with some of the USAF's other aircraft such as transports, bombers, and even other tactical combat aircraft. The Lockheed Martin C-130H Hercules weighs 34,686 kg empty and the A-10 weighs 9,183 kg empty, while the Lockheed Martin F-35A Lightning II Joint Strike Fighter (JSF) weighs 13,290 kg empty. At Boeing's KC-46A first delivery ceremony, Wilson said that the USAF is paying for the boom redesign as it meets the international standard that the service gave to Boeing. In the deal reached in mid-January over the first delivery, the USAF agreed to pay for the boom fix while Boeing would pay for upgrading the remote vision system (RVS). Boeing is planning both hardware and software fixes to the RVS to allow it to automatically adjust and operate effectively in both the sun's glare and in shadow. Wilson also said that this boom redesign will be the first programme change in the history of the KC-46A. https://www.janes.com/article/86037/us-air-force-eyes-kc-46a-aerial-refuelling-boom-redesign
-
May 1, 2019 | International, Aerospace
Beyond Chinook: Army Secretary Challenges Industry To Revolutionize Heavy Lift
By SYDNEY J. FREEDBERG JR. A light scout and a mid-size transport remain Army aviation's top two priorities, Secretary Mark Esper said, but industry needs to start thinking about the next heavy-lift aircraft and stop fighting against cuts to the venerable CH-47. WASHINGTON: “I'm asking industry is to think about heavy future vertical lift,” Army Secretary Mark Esper told reporters today. “Where I need their heads to be is thinking about future heavy vertical lift, not about how do we maintain what we have now and make upgrades here or there.” Translation: Boeing and Pennsylvania legislators, stop fighting me to restore funding for the latest upgrade to the venerable CH-47 Chinook — built outside Philadelphia — and join me in brainstorming a radically better aircraft for future great-power wars with Russia or China. “I really want to think aggressively, boldly about what the future may hold, how it can be different,” Esper said. Is that just your advice to industry, I asked, or is there some kind of preliminary study planned that companies could actually get government money for? It's premature to talk dollars, Esper replied. “Whether we help fund that at some point, I don't know, I'm not going to talk about that right now,” he said. “My comment was only we need aircraft in the future that can do that heavy vertical lift movement, but can ... survive in a very contested airspace and keep up with the FARAs and FLRAAs.” That's the Future Attack Reconnaissance Aircraft — a light scout to fill the gap left by the retired OH-58 Kiowa — and the Future Long-Range Assault Aircraft — a mid-size transport to replace the UH-60 Black Hawk. Both are intended to be high-speed, long-range aircraft.The solution probably will be turboprop/helicopter hybrids, rather than conventional helicopters, that can operate on fast-paced, far-flung future battlefields where precision-guided missiles can kill the forward fuel depots and maintenance bases on which today's shorter-ranged helicopters rely. FARA is the Army's top-priority aircraft program, Esper reiterated here at the Brookings Institution today, and FLRAA is No. 2. But once the light scout and the mid-size transport programs are further along, Esper said for the first time today, his no. 3 priority will be a new heavy hauler. “We're not there yet, right, obviously we need to get FARA and FLRAA moving,” Esper said. “No. 3 is I need to eventually think about what's the future of heavy vertical lift,” Esper told the audience at Brookings. “What's the future replacement for the Chinook” with the greater speed, range, payload, and survivability required for future battlefields? Full article: https://breakingdefense.com/2019/04/beyond-chinook-army-secretary-challenges-industry-to-revolutionize-heavy-lift