12 mai 2021 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
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4 février 2021 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
To keep up with rivals, DoD nominee will weigh consolidation vs. innovation
By: Joe Gould
WASHINGTON ― President Joe Biden's nominee for deputy defense secretary, Kathleen Hicks, said she is “concerned” about consolidation in the defense industrial base, and that competition is needed to maintain an edge over China and Russia.
Hicks, whose office would review deals that involve national security issues if she is confirmed by the Senate, told lawmakers Tuesday that she would work with them to ensure a healthy defense industrial base. The comments came amid market expectations that defense deal-making could take off in 2021.
“Extreme consolidation does create challenges for innovation,” Hicks told the Senate Armed Services Committee. “We need to have a lot of different good ideas out there. That's our competitive advantage over authoritarian states like China, and Russia. And so if we move all competition out, obviously, that's a challenge for the taxpayer. But it's also a challenge in terms of the innovation piece.”
As the space sector and technological developments drive growth in the aerospace and defense sector and the pandemic weakens commercial aviation firms, companies are “likely to pursue opportunities for consolidation,” the consulting firm Deloitte said in a recent report.
Firms could seek new merger and acquisition opportunities, the report said, to “capture more value, drive cost-competitiveness, or acquire targeted niche capabilities and emerging technologies” such as “advanced air mobility, hypersonics, electric propulsion, and hydrogen-powered aircraft.”
Recent years have seen a number of major deals, including the combination of Harris and L3 Technologies, United Technologies Corp. and Raytheon; BAE Systems and Collins Aerospace, and General Dynamics and CSRA. Lockheed Martin's $4.4 billion acquisition of Aerojet Rocketdyne, announced in December, has yet to clear regulators.
The Federal Trade Commission and the Justice Department also review mergers and acquisition activity in the defense sector.
At Tuesday's hearing, Connecticut Democratic Sen. Richard Blumenthal, whose state hosts General Dynamics Electric Boat, told Hicks a drop in the number of submarine suppliers from 17,000 to 5,000 over recent decades suggested broader problems for the defense industrial base, problems that he said were, “extremely alarming to me.”
Blumenthal indicated Hicks had committed prior to the hearing to aid small suppliers struggling with the pandemic's economic fallout and to develop new small and medium suppliers. (This was one focus of DoD's acquisition and sustainment office under the previous administration.)
“I'm hoping you will focus on the supply chain that is vitally important to suppliers like Electric Boat or Raytheon or any of our major sources of supply,” said Blumenthal, who has served as the top Democrat on SASC's Seapower Subcommittee.
A broader theme for the hearing was how Hicks, whose job involves supervising the defense budget, would invest in forward-leaning technologies under a flat budget and divest from existing weapons platforms. Meanwhile, lawmakers grilled Hicks about whether she supported spending on nuclear modernization, shipbuilding and other programs with connections to lawmakers' home states.
Acknowledging the political and budget tensions, Hicks said she wants to link future budgetary decisions with concepts for operations, to buy “capabilities that actually line up to theories of victory for how we are trying to pace challenges from China and Russia.”
Other lawmakers told Hicks they wanted an easier paths for smaller, cutting edge firms from outside the Beltway to do business with the Pentagon and for them to scale production of their products, beyond the experimentation phase.
“We've had testimony before this committee that many smaller companies, particularly in Silicon Valley, and in the technology field generally have given up on the Pentagon, it's too complicated is too lengthy is too expensive, even to fill out the forms,” said Sen. Angus King, I-Maine.
For her part, Hicks said Tuesday she would “increase the speed and scale of innovation in our force,” and she would work to understand how alternative acquisitions methods are servings smaller non-traditional suppliers. She affirmed that those firms cannot survive on research and development funding alone.
“I do think a sustain level of [research and development] investment is vital, but we actually have to field capabilities, and that's a place where DoD has really struggled,” she said, adding that exercises and experiments help demonstrate the value of new technologies.
“When we can demonstrate value, then we're in a much better position to have a dialogue with Congress and with industry about where that where those capabilities can take us.”
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16 juillet 2020 | International, C4ISR, Sécurité
Airbus US pivots business strategy away from selling big platforms to the Pentagon
By: Valerie Insinna WASHINGTON — After decades of trying to break into the U.S. military aircraft market, Airbus is shifting course with a new strategy that prioritizes selling off-the-shelf sensors, data, space and intelligence capabilities that have been customized for U.S. government buyers. During a Wednesday discussion with reporters about the new direction for the business, Chris Emerson, the new chief executive of the Airbus U.S. Space and Defense division and formerly the president of Airbus Helicopters, said he wanted to move the company's focus in the United States away from the major fixed-wing platforms that are the company's bread and butter in Europe. Instead, he hopes to expand the company's presence in the growing space and intelligence markets, particularly with low-cost satellites like those made by its joint venture One Web, geospatial intelligence and imaging, and space-based sensors. “We know the Air Force needs an A400M, but I can spend 10 years trying to convince the Air Force and all the politicians that they should buy an A400M. And ultimately they will buy C-130s,” Emerson said. “So let me focus this energy, this great leadership team, on achieving something that is tangible today that the customer really needs. Yes, it's not traditional for Airbus, but it will bring the value and we'll have a better foundation if one day my successor says, ‘You know, I want to be a big platform competitor.' At least we'd have built up trust and proven that we could really meet the requirements that are demanded of it.” Although Airbus is a juggernaut in the international military and commercial aerospace market, it has always struggled to find its place among the U.S. defense prime contractors as major aircraft manufacturers. It famously lost the KC-X contract to Boeing in 2011 after a bloody and prolonged battle. Since then, the company's biggest procurement victory has been continued sales of its UH-72A Lakota helicopter to the Army. “I remember I spent eight years thinking we could bring real value on air-to-air refueling for the Air Force. But I spent eight years, and I'm frustrated because I look at it and we didn't succeed,” Emerson said. “I've asked the team, ‘Let's find a roadmap where we can actually make a mark with the customers.' And that means, I'm not going to go look at competing with Boeing and the Lockheeds and Northrop, but I'm going to look at other areas.” The U.S. customer is increasingly making investments into technologies that can augment or accelerate decision-making, he said. “That's where we start to look everything beyond an air breathing platform. We started to look at the data, the intelligence, that they need,” he said. “It could be intelligence that is geospatial-related, either Earth observation, or electro-optical, or synthetic aperture radar, or a blend that we're pulling in multi-source information.” Airbus already develops those types of capabilities in its commercial air and space businesses, and could quickly adapt them to U.S. demands, he said. When there are opportunities to offer Airbus aircraft to the U.S. military, the strategy will be to partner with American primes, Emerson said. For instance, last year Airbus and Lockheed signed a memorandum of understanding to market aerial refueling services to the U.S. Air Force using the Airbus A330 Multi Role Tanker Transport. Asked on Wednesday whether the two companies planned to compete for tanker leasing opportunities currently being considered by the Air Force, Emerson said Lockheed takes the lead on interactions with the U.S. military on aerial refueling. He added that UH-72s will continue to be manufactured alongside Airbus's commercial H125 helicopter in Columbus, Miss., but modifications, support and contracting will be performed by the Airbus U.S. Space and Defense. In addition to naming Emerson as head of the company's U.S. defense and space business, Airbus also appointed a five-person board of directors — which includes former National Geospatial-Intelligence Agency director Letitia Long and William Shelton, a retired Air Force four-star and former head of Air Force Space Command — aimed at deepening ties with the U.S. military, space and intelligence agencies. It also named a seven-person team of advisers made up of former national security officials. https://www.defensenews.com/industry/2020/07/15/airbus-us-pivots-business-strategy-away-from-selling-big-platforms-to-the-pentagon/
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13 septembre 2023 | International, Aérospatial
Italy committed to fund fighter jet programme with UK, Japan | Reuters
Italy was committed to fund its share of the Italian-Anglo-Japanese fighter jet programme for 15 years, long enough for the aircraft to enter service, the director for the project at the Italian Ministry of Defence said on Wednesday.