August 18, 2022 | International, Aerospace
Boeing, Northrop Grumman Join Group Pushing 3D Printing to Small Suppliers
The White House-backed compact is also part of an effort to make supply chains more resilient.
July 8, 2020 | International, Aerospace
By JOHN VANDIVER | STARS AND STRIPESPublished: July 7, 2020
STUTTGART, Germany — The U.S. plans to sell six UH-60 Black Hawk helicopters to Lithuania to boost allied quick response capabilities in a region regarded by some security analysts as one of NATO's most vulnerable.
The deal, which will also include a full stock of related Black Hawk gear and weaponry such as M240H machine guns and missile warning systems, is worth $380 million, the Defense Security Cooperation Agency said in a statement Monday.
The Black Hawks will help Lithuania support U.S. and NATO forces' “rapid response to a variety of missions and quick positioning of troops with minimal helicopter assets,” the statement said.
The deal was announced as Lithuania modernizes its armed forces, and one year after the former Soviet republic entered into a new security agreement with the U.S. that calls for closer defense cooperation.
“The proposed sale of these UH-60 helicopters to Lithuania will significantly increase its capability to provide troop lift, border security, anti-terrorist, medical evacuation, search and rescue, re-supply/external lift, combat support in all weather,” the agency said.
Lithuania, which shares borders with the militarized Russian exclave of Kaliningrad to the south and Russia's strategic partner of Belarus to the east, is considered by many security analysts to be one of NATO's most exposed members.
Of particular concern is a 40-mile stretch of land along Lithuania's border with Poland, known as the Suwalki Gap, which, if seized by Russian forces in the event of a conflict, could result in the three Baltic states being cut off from the rest of the alliance.
NATO in recent years has added multinational battle groups in Lithuania and the other Baltic states, Latvia and Estonia, as well as in Poland, to act as deterrents against potential Russian aggression.
The battle group in northeastern Poland is led by the U.S., and is particularly focused on security around the Suwalki Gap.
August 18, 2022 | International, Aerospace
The White House-backed compact is also part of an effort to make supply chains more resilient.
August 3, 2022 | International, Other Defence
New funding, strategy and focus puts CBRN back in the mix.
May 21, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Michael Bruno May 20, 2020 If you like the cadre of big aerospace and defense companies now, you are going to love them later. Among the major trends the novel coronavirus is expected to catalyze within aerospace and defense (A&D) manufacturing is that the big will get bigger by gobbling up others or taking back more work. In the next few years, vertical integration should pick up momentum, according to several executives and consultants. After decades of OEMs, primes and top-tier companies outsourcing major work on their programs, many see the pendulum swinging back to bringing more of it in-house. “We've already seen signs of more vertical integration coming through the industry and potentially where some of that could be accelerated as we work through the crisis,” says one advisor. Boeing started this a few years ago as it insourced avionics and other niche segments. Major consolidation picked up last year with the mergers of Raytheon and United Technologies Corp. and L3 Technologies and Harris Corp. Now, whether it be protecting profits or securing supply, the reasons to own more of the work are burgeoning as industry is refashioned in the COVID-19 crisis. For starters, aerospace suppliers are facing diminished economies of scale but a greater share of fixed-cost in production, with a likely loss in profitability and competitiveness, say Roland Berger advisors Robert Thomson and Manfred Hader. So-called organic top-line increases, through insourcing and acquisition of additional work packages, are possible but only to a limited degree. A fixed-cost reduction likewise is only feasible up to a certain level due to equipment and overhead structures. So consolidation is an important lever to consider. Part and parcel to that will be the financial distress into which suppliers in Tier 2 and below fall—and the opportunity to roll them up. Top CEOs are watching. Speaking May 13 to an investor conference, Honeywell International Chairman, CEO and President Darius Adamczyk cited an inflection point. “For a couple of years now, I've been talking about how it is a seller's market, not a buyer's market,” he told Goldman Sachs. “But that calculus may change in the second half of the year, and I think it could become a bit more of a buyer's market, and the valuations may be better and different. That's something that we want to partake in.” Feeding the phenomenon could be a desire to bring supply closer to home, both for reliability and geopolitical reasons. Suppliers overseas once were revered for their low-cost footprint, but suddenly they are seen as vulnerable to pandemics, economic stress and global trade wars. In turn, consultants expect industry leaders to take another look at favoring local regions. Even in the defense realm, which for now is considered safer during this downturn, there is talk of larger firms becoming even more powerful. “Large pure-plays should come through the pandemic relatively unscathed but may be looking at lower spending growth outlooks,” Capital Alpha Partners Managing Director Byron Callan noted May 13. “Mergers and acquisitions may thus be more important in delivering growth—even though it's not organic growth—in 2021-25.” So where to look for vertical integration and consolidation from the top? Clues are already emerging, according to advisor presentations. First, look at niches where top suppliers already are prevalent—environmental and flight-control systems, landing gear, electrical power and interiors—and others where they are not there yet, including maintenance, repair and overhaul, logistics, aerostructures and engines. Next, look at the supply base from the perspective of a top supplier. Who is distressed or drawing down credit lines? What revenue mix do certain potential targets have—e.g., commercial vs. defense, products vs. services or aging vs. next-generation platforms? Finally, consider where the new nucleus of consolidation will be. Will more “super Tier 1s” such as Raytheon Technologies emerge, or will conglomeration occur among Tier 2 and 3 providers? The first would allow rationalization of capacity for detailed part production from Tier 1 to 3, for instance, with the super Tier 1s able to secure through-value-chain control and prevent subtier supplier failure, according to Roland Berger. The latter likely would be opportunistically driven rather than following any overarching industry logic. For smaller suppliers, the questions are more concise, as one consultant says. Do you want to be a buyer, a seller or risk it as is? A simpler question, for sure, but no less difficult to answer. https://aviationweek.com/aerospace/manufacturing-supply-chain/manufacturing-reshapes-after-covid-19-size-will-matter