February 26, 2021 | International, C4ISR
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IAI, Matrix to Establish an AI Development Center for Automated Target Detection
November 20, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By: Andrew Chuter
LONDON — The British government has approved the largest rise in its defense budget since the end of the Cold War, with £16.5 billion (U.S. $21.9 billion) in additional funding made available for spending on shipbuilding, space, cyber, research and other sectors over a four-year period.
Prime Minister Boris Johnson said the increase could transform the military and bring to an end an era of retreat in the armed forces.
“For decades, U.K. government has pared and trimmed our defense budget. If we go on like this, we risk waking up to discover our armed forces have fallen below the minimum threshold of viability. I have refused to pick up the scalpel yet again. I've decided the era of cutting must end, and end now,” the prime minister told Parliament in a statement.
The retreat to which Johnson referred is made up of capability cuts, program delays and cancellations, reductions in research and development, and slashed personnel numbers amid defense budgets that have regularly failed to match ambitions.
Winners and losers
Among the efforts likely to benefit from the commitment of new money are the Tempest future combat air program; a number of shipbuilding projects, including a fleet of logistics ships; and various space and cyberspace assets. Specifically, the spending commitment will finance the country's order of eight Type 26 and five Type 31 frigates, which are under construction in Scotland, where the U.K. government faces renewed calls for independence.
Johnson said he is also committed to the embryonic Type 32 next-generation frigate and the building of a multipurpose research ship.
Also included in Britain's transformation plans are the creation of a Space Command capable of launching a rocket from a site in Scotland by 2022 as well as a new agency focused on artificial intelligence.
But Johnson also warned some programs would not receive equal attention.
“We will need to act speedily to remove or reduce less relevant capabilities — and this will allow our new investment to be focused on the technologies that will revolutionize warfare,” he said.
Johnson gave no clues to where the ax might fall, but new armored vehicle programs, of which the British Army have several currently running, are often cited by analysts as a potential target for cuts.
“Now is the right time to press ahead because emerging technology on the horizon will make the returns from defense investment infinitely greater,” he told Parliament. “We have a chance to break free from the vicious circle where we ordered ever deceasing numbers of evermore expensive pieces of military hardware, squandering billions of pounds along the way.”
The government said military modernization will be underpinned by a record investment of at least £1.5 billion extra and £5.8 billion in total on military research and development, including a commitment to further invest in the future combat air system.
“This reverses the systematic decline in this crucial area in the last 30 years,” according to the Prime Minister's Office.
What's been the reaction?
Commitment to the major hike in extra spending came after the Treasury gave in to pressure from Johnson to provide extra funding for the armed forces over a four-year period rather than accept the chancellor's preference for a one-year funding settlement.
The announcement is being termed as the first phase of an integrated defense review being conducted to coordinate defense, security, foreign and development policies. The review was expected to already be published, but with plans in flux and the new factor of additional cash, a more detailed review will not likely be public until next year.
The Royal United Services Institute think tank in London said that over the next four years, the “additional cash represents a real-term increase of between 10 percent and 15 percent in the defense budget: equivalent to some £4 billion more annually than had been promised.”
RUSI also noted the announcement, “provided little clarity on the foreign policy ambition, and it appears likely that we will have to wait until the new year for the full integrated review to be revealed. In the meantime, the [Ministry of Defence] will be under considerable pressure to ensure that its ambitions do not again outrun its (now significantly enhanced) means.”
Analysts here say that despite the new spending commitment, the MoD will still have to cut a number of programs to balance it's books.
The National Audit Office, the government's financial watchdog, has repeatedly warned the 10-year equipment plan is unaffordable, saying it could be too costly by as much as £13 billion. The current annual defense budget is about £40 billion. The new spending pledge will see the defense budget account for 2.2 percent of gross domestic product, meeting NATO guidelines.
Johnson, who is currently self-isolating, having recently come into contact with a lawmaker who has subsequently tested positive for COVID-19, said he had taken the decision to raise spending in the teeth of the pandemic because the “defense of the realm must come first.”
“The international situation is more perilous and more intensely competitive than at any time since the Cold War, and Britain must be true to our history and stand alongside our allies,” he said.
A statement from the Prime Minister's Office said the increase will cement the U.K.'s position as the largest defense spender in Europe and the second largest in NATO, after the U.S. The announcement drew an immediate and welcoming response from acting U.S. Defense Secretary Christopher Miller.
“The [Department of Defense] applauds the announcement by the U.K. to significantly increase defense spending. The U.K. is our most stalwart and capable ally, and this increase in spending is indicative of their commitment to NATO and our shared security,” he said. “With this increase, the U.K. military will continue to be one of the finest fighting forces in the world. Their commitment to increased defense funding should be a message to all free nations that the most capable among us can — and must — do more to counter emerging threats to our shared freedoms and security.”
The move was also welcomed locally by ADS, a major industry lobby group. “This investment will boost our national security, help the U.K. address new and rapidly evolving threats by developing innovative world-class equipment, and support our economic recovery. The commitment to key projects will embed high-value design and manufacturing skills in all regions and nations of the U.K. for decades to come,” said Paul Everitt, the ADS chief executive.
But Everitt also said the money must be quickly spent with the U.K.'s prosperity a priority.
“It is important that the procurement regime delivers quickly and in a manner that prioritizes U.K. industrial impact, aiding planning and clarity and helping to build back better,” he said.
The £16.5 billion in extra spending is over and above the government's pledge to increase defense spending by 0.5 percent above inflation for every year of the four years remaining of the existing Parliament. The government said that on existing forecasts, this is an overall cash increase of £24.1 billion over four years. Johnson told Parliament that would represent spending of £190 billion over the next four years.
But how will the government's massive spending in the fight against COVID-19 impact these spending plans? Media and analysts here reckon Britain's huge overseas development budget is likely to take a hit to make these new efforts a reality.
 
					February 26, 2021 | International, C4ISR
IAI, Matrix to Establish an AI Development Center for Automated Target Detection
 
					August 17, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
By: Fenella McGerty The two Russian defense companies in this year's Top 100 list — air defense missile systems manufacturer Almaz-Antey and weapons developer Tactical Missiles Corporation JSC — have again fallen in rank. Almaz-Antey has fallen to 17th place from 8th and 15th in 2018 and 2019 respectively. Similarly, Tactical Missiles Corporation JSC has fallen to 35th place from 25th and 32nd in 2018 and 2019 respectively. The falling revenues of the companies this year reflect the difficult market conditions these enterprises are operating in as a result of the impact of COVID-19 on government budgets. Even before the pandemic and the consequent contraction in economic output emerged, the outlook for Russian defense spending was already subdued in light of persistently low oil prices in 2019. Domestic spending was further constrained this year as the oil price fell below $20 per barrel in April, with the projected average price for the year reaching just $40 per barrel. The International Monetary Fund forecasts a 6.6 percent contraction in Russia's real gross domestic product this year as lockdown measures to prevent the spread of COVID-19 subdued domestic and international economic activity, the latter further weakening global energy demand. The 4.1 percent growth projected for 2021 means the Russian economy will only return to pre-pandemic output in 2022. Last month, as part of wider measures to offset the bleaker fiscal setting, the Russian Ministry of Finance proposed a 5 percent reduction in financing for the state armament program over the next three years. Under the new plans, the 20 trillion rouble (U.S. $271 billion), 10-year military appropriations program (known as GPV 2027) that runs to 2027 covering defense procurement, repairs, research and development, and infrastructure investment will be reduced by a total of 225 billion roubles between 2021 and 2023. Wider defense funding could be reduced by as much 323 billion roubles. The previous state armament program (GPV 2020) saw significant increases enacted to defense investment between 2011 and 2016 as the country pursued ambitious modernization targets. As a proportion of GDP, the official Russian defense budget peaked in 2015 at 3.8 percent. If one includes wider defense spending items such as military pensions, social support and housing, total Russia expenditure accounted for as much at 4.8 percent of GDP that year. This period of significant defense investment helped to recover some lost ground from the previous two decades. Progress was remarkable but by no means comprehensive, with strategic nuclear forces and defense aerospace surpassing modernization targets, while maritime and land forces fared less well. Pockets of advanced capability — e.g., air defense, weapons, combat aircraft — evolved alongside less efficient entities that failed to deliver against the ambitions of GPV 2020. Nonetheless, as Russia approached the overarching target of 70 percent “modern” equipment within the armed forces inventory, defense spending increases slowed and the country moved from a period of dramatic capability buildup toward a sustainment phase — a move further presaged by wider economic constraints at the time As such, GPV 2027 is less ambitious than GPV 2020, and annual defense budget allocations have reflected this. Russian defense spending has been stagnant in real terms since 2017, as sanctions impacted government finances, energy revenues remained subdued and modernization ambitions were deemed close to fulfillment. Official projections of the budget for national defense saw slightly stronger growth in 2021 and 2022, although this was proposed in the months before the full economic ramifications of the pandemic were realized. Russian companies therefore face a tighter domestic market — as indeed will most countries in the wake of the pandemic — while the burden of debt has stifled investment in new technologies and R&D. This lack of funds to invest in research has created a further challenge for companies facing increasing political pressure domestically to diversify production efforts toward the civil market. The reported moves to restructure defense industry debt will ease some of the stress on companies and provide some temporary bandwidth with which to focus on investment. However, such moves will further constrain domestic defense spending, as funds to absolve debt will inevitably squeeze investment elsewhere in the budget. Perhaps on the positive side, the further weakening of the rouble against the dollar in 2020 has the potential to provide Russian defense equipment with an added price advantage in global defense markets and to facilitate exports. The comparatively cheaper kit will appeal to countries that find they have less investment funds at their disposal than a year ago. As competition in export markets intensifies and funding tightens, buyers may find they can demand greater industrial participation, partnership and technology transfer in moves to bolster self-sufficiency and resilience. Markets which have previously shown preference for Western equipment may find such capabilities are no longer affordable with Russia's relative willingness to offer favorable exchange rate agreements and flexible financing terms, offering a further advantage in constrained export markets. Fenella McGerty is a senior fellow for defense economics at the International Institute for Strategic Studies. https://www.defensenews.com/opinion/commentary/2020/08/17/budget-and-pandemic-present-challenges-to-russias-defense-industrial-base
 
					July 3, 2024 | International, Land