31 mars 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Small defense businesses see cash issues during coronavirus outbreak

By: Aaron Mehta

WASHINGTON — More than 60 percent of small companies in the defense supply chain are seeing disrupted cash flow, according to a new survey put forth from the National Defense Industrial Association.

“This survey shows how the defense lifeline runs through small business,” Hawk Carlisle, NDIA's president and CEO, said in a statement. “These companies must survive if the defense industrial base is to remain the best in the world on other side of COVID-19.”

COVID-19 is a newly discovered coronavirus — a family of viruses, some of which cause disease in people and animals, named for crownlike spikes on their surfaces.

As of Friday, 458 small businesses had responded to the survey, which will remain open through April 10. Fifty-five percent of respondents have less than $5 million in annual revenue, and 70 percent have less than 50 employees.

Sixty-two percent of the respondents have seen disrupted cash flow as a result of the economic downturn. Primarily, those have come as cuts to billable hours or delayed payments from prime contractors because of shutdowns or telework. A lack of telework options is also an issue for contractors.

Notably, 54 percent of respondents say they cannot work on a contract because they are currently under a shelter-in-place order.

And optimistically, 69 percent do not expect cost overruns on fixed-price contracts as a result of the coronavirus-related disruptions. Those that do expect such overruns predict them to be in the 10-20 percent range.

The results of the survey were delivered Friday to Ellen Lord, the undersecretary of defense for acquisition and sustainment. Speaking to reporters on Wednesday, Lord said she is closely watching the lower tier of the supply chain for weak spots that may appear.

Last week, the Defense Department announced new measures to increase progress payments out to both small and large companies to ensure they are able to keep work moving on schedule.

https://www.defensenews.com/industry/2020/03/27/small-defense-businesses-seeing-cash-issues-during-coronavirus-outbreak-survey/

Sur le même sujet

  • Poland, Romania tee up helicopter tenders, target 2 percent defense spending

    4 septembre 2020 | International, Aérospatial

    Poland, Romania tee up helicopter tenders, target 2 percent defense spending

    By: Jaroslaw Adamowski WARSAW, Poland — A number of Eastern European allies aim to maintain their defense expenditures at 2 percent of their respective gross domestic products despite the current economic downturn. Poland and Romania are at the forefront of the region's military modernization efforts, and both plan to spend billions of dollars on helicopters in the near future. However, local observers say the countries' defense acquisitions are facing delays due to organizational limitations. In a sign of commitment to modernizing its military with Western-made gear despite budget cuts, Poland decided to host the MSPO defense industry show in Kielce this year. The pandemic has forced the event's organizers to cut the show to three days, Sept. 8-10, as travel restrictions forced the majority of foreign defense companies to skip the event. Over the past years, Warsaw has increasingly focused its efforts on large procurements by foreign manufacturers, such as the $4.75 billion deal to to buy Raytheon's Patriot air-and-missile defense system and the $4.6 billion contract to acquire 32 F-35 Lightning II fighter jets from Lockheed Martin. Due to this, some observers claim Poland's defense industry is in urgent need of orders, or partnerships with foreign producers, to stay financially afloat. “A situation in which Poland only buys ready weapons off the rack is a bad one,” retired Gen. Mirosław Różański, president of the Stratpoints Foundation and former General Commander of the Polish Armed Forces, told Defense News. “Developing the defense capabilities of any country cannot solely consist of acquiring the most modern types of weapons, but also enabling its local industry to service and repair, and preferably to produce, or at least jointly produce them with foreign partners.” “As long as Polish officials will claim that we can build submarines or tanks on our own, this won't lead us anywhere. We must build partnerships, just like the rest of the world does. The flagship F-35 project is driven by an elite group of nine countries,” Różański said, adding that past plans to integrate Poland's leading, state-run defense group PGZ within a large international defense group represented a missed opportunity. Slawomir Kulakowski, the head of the Polish Chamber of National Defense Manufacturers, told Defense News most of Poland's defense companies supply their products to the country's military as export sales have lagged. Their increased cooperation with foreign players could pave the way for the introduction of various new weapons, according to Kulakowski. “In some foreign defense contracts, the Polish government includes the requirement for foreign companies to cooperate with the Polish industry. Other deals include offset requirements, but these are often criticized for boosting the weapons' prices without generating comparable benefits,” Kulakowski said. “Better contracts foresee transfers of technology to Polish plants, allowing them ... to modernize their offer, expand to new markets.” Some of the country's much-awaited defense tenders include the planned acquisitions of new helicopters for the Polish Air Force. These include the 32 multirole copters under the Perkoz program, with the first squadron to be delivered by 2026, bolstering the military's transport, combat support, command, and reconnaissance capacities. They are to replace the Air Force's outdated Mil Mi-2 and W-3 Sokol copters. The ministry also aims to buy 32 combat helos under the Kruk program, with the first squadron to be supplied until 2026, and a second one after 2026. The aircraft are to replace Poland's Soviet-designed Mil Mi-24 helos. With the two programs facing delays, though, the ministry has turned to smaller acquisitions. In January 2019, Warsaw signed a contract to buy four S-70i Black Hawk copters from Lockheed Martin's subsidiary Sikorsky for some 683.4 million zloty (U.S. $186 million). Three months later, Poland signed a deal with Leonardo to acquire four AW101 helicopters for some €380 million (U.S. $454 million). Kulakowski said the much-awaited transformation of the Armament Inspectorate, the ministry's unit that handles acquisitions of military gear, into an Armaments Agency, fitted with broader competencies and increased workforce, could accelerate procurements. According to Różański, to reform Poland's defense acquisition system, the potential Armaments Agency should be established as a government entity, and not a unit subordinated to the ministry. “Two conditions must be met for such an endeavor to be successful. Defense acquisitions must be taken out of party politics, and they must be delegated to a team of competent, politically neutral experts that will be responsible for long-term planning and execution of our modernization programs,” Różański said. Contenders in Romania In Romania, the country's defense establishment has been mulling plans to purchase new copters since 2015, but a decision to launch a tender has yet to be made. George Visan, the coordinator of the Black Sea Security Program at the Bucharest-based think tank Romania Energy Center, told Defense News the Defense Ministry “would like to acquire two types of military helicopter: an attack helicopter and medium-size transport type helicopter. Before the pandemic, a helicopter procurement program was to start this year or in 2021.” With these purchases in mind, Romania has filed a request for information with the U.S. government for a potential acquisition of 24 attack helicopters and 21 medium-size transport helicopters. There are three U.S. and European helo producers that are expected to compete for the order. This said, Bucharest will most likely select an offer that brings manufacturing jobs to Romania through partnerships with local businesses. Eyeing the contract, Airbus Helicopters has shifted its assembly line for the H215M copter to Romania, and established a partnership to make medium-size helicopters with local aircraft plant IAR Brasov, according to Visan. “Airbus wants to sell its H215M and build it here in Brasov, the company is also offering the H145M which is presented as an attack helicopter. The second contender is Bell with the AH-1Z Viper and the UH-1Y Venom,” Visan said. “Finally, the third contender is Lockheed Martin with the Sikorsky UH-60M.” https://www.defensenews.com/global/europe/2020/09/03/poland-romania-tee-up-helicopter-tenders-target-2-percent-defense-spending/

  • Germany to develop short-range air defence system to replace retired Gepard tanks

    18 janvier 2024 | International, Terrestre

    Germany to develop short-range air defence system to replace retired Gepard tanks

    Germany will order the development of a short-range air defence system for some 1.3 billion euros ($1.4 billion) to plug a gap in its defences that became apparent after Moscow's invasion of Ukraine and...

  • Rowan University Project Will Develop Composite Materials Used to Protect Soldiers

    27 août 2019 | International, Terrestre

    Rowan University Project Will Develop Composite Materials Used to Protect Soldiers

    By Kimberly Hoodin Rowan University will lead a $14.5 million Department of Defense/Army Research Lab project to create new composite materials – and ways to process those materials – that will help modernize the Army and improve the safety of soldiers in the field. The project, titled “Advancing Structural Materials for Army Modernization Priorities via Direct-Write Approaches,” will be led by researchers from Rowan University teamed with PPG, Drexel University, Northeastern University and the University of Massachusetts Amherst to create new advanced composite and plastic materials and ways to process them. The project is driven by a cooperative agreement with the U.S. Army Combat Capabilities Development Command Army Research Laboratory. The team will work on developing innovative materials by using “cold-spray” advanced manufacturing technologies. The work will focus on polymers, starting with polystyrene, then move on to more advanced composite materials and systems, as designated by the Army. “The high particle velocity of cold spray enables rapid cure and adhesion of polymers. This should result in the fast and efficient production of high-performance composite parts or repair of parts,” said John La Scala, associate chief the ARL's Materials and Manufacturing Sciences Division and cooperative agreement manager for the research program. “Additionally, this novel manufacturing methodology is a layer-by-layer production of composites, which should reduce void and flaw content. This should improve strength and durability significantly, thereby opening the potential of using this manufacturing technique to prepare composites for extreme conditions, while replacing the current expensive manufacturing methods with a much more economical methodology.” Researchers hope to develop materials to be used for making military equipment stronger and lighter, soldiers more agile and vehicles more durable. Longer-term, the team sees the potential for use of the materials in the fields of civil aviation, automotive, health care and space exploration. “We will work to make materials more quickly, to make them better and easier to repair offsite and, importantly, onsite in the field,” Dr. Joe Stanzione, associate professor of chemical engineering at Rowan University said. “That includes everything from parts for tanks and jeeps, to usable tools, and helmets.” http://compositesmanufacturingmagazine.com/2019/08/rowan-university-project-will-develop-composite-materials-used-to-protect-soldiers/

Toutes les nouvelles