WHAT HAPPENED TO BAe DYNAMICS-BRISTOL?
At the conclusion of the RMSA 2007 AGM, Bob Kenny-Head of Land and Sea Systems MBDA UK gave us an excellent non-technical slide-show presentation on MBDA, its origins and how it has evolved from the old BAe Dynamics.
The following is a synopsis of the presentation which we hope you find interesting and a little thought provoking.
What is MBDA? - MBDA is a leading global missiles and missile systems prime contractor , they have an extensive product portfolio covering the whole range of military services requirements with 45 products in service and 30 products in development. MBDA has emerged from a consolidation of the major defence industries across Europe and they have employees based in the UK, France, Italy and Germany. Their major shareholders are BAE Systems, EADS and Finmeccanica.
Through their European industry base MBDA has extensive experience of international collaborative programmes e.g. Storm Shadow/SCALP, Aster, Meteor, and are often able to do what governments can't in that they are able to direct work across Europe to satisfy political workshare agreements and yet maintain a high technical integrity for the product.
MBDA is a prime contractor for: Missile-based weapon systems/ An entire range of tactical missiles/ Electromagnetic seekers and equipment/ Countermeasures/ Simulation and combat training systems and the integration of missiles onto platforms.
The Company is a Leader in Advanced Technologies: Guidance, control and navigation / Aerodynamics-destruction and vulnerability / Image processing / Propulsion / Hardware-in-the-Loop facilities / Simulation / Synthetic Environment / Stealth / Infra-Red Seekers.
THE TRADITIONAL AIR DEFENCE THREAT
Up to 1990 the threats faced by our Forces were much more predictable and primarily based on the old Soviet Union, this made long term planning for defensive systems a fairly stable process. Inherent in this was a spiralling arms race based on evolving technology but with a "safety net" supplied by the nuclear deterrent - nobody wanted to risk full scale war. For the Defence Industry this provided a growth environment.
But now? The iron curtain is gone, the threats are from everywhere and their level of sophistication varies enormously. Military thinking is becoming dominated by Globalisation , Climate Change and Energy Shortage.
1. Globalisation
90% of all trade is carried by sea
95% of this trade goes through 9 choke points
EU power base is disappearing
Political idealism is nearly dead - China / Iran / India and has been replaced by demands generated by economic expansion.
The Global economy has increased x3 in < 5 yrs Despite major political events - 9/11 - Iran evolving as a Nuclear Power - Iraq
2. Climate Change
Sea levels rise
Farm land decreases
Ports disappear
Water Supplies go down
Risk of inter-state war increases based on resource demands.
3. Energy Shortage
Traditional resources are declining so - Africa - Under Sea mining - Polar mining are all becoming targets for the large powers.
Rich countries are running out of resources - UK gas pipe line across Sweden
Emerging Nations are power hungry - China - India - Iran.
Observations
The West are at threat from low technology attacks on its trade routes.
Terrorist organisations are likely to have access to nuclear technology.
Inter-state war is a bigger risk because of clashes over declining resources.
What does this mean to MBDA
New threats on top of the traditional ones. Military involvement in policing trade routes. Military involvement in defending resources in neutral areas. Demand for lower quality higher quantity equipment. The need for more flexible systems, developed more quickly, and capable of rapid upgrade.
Missile System Market
50% of the market (US market) not accessible to European suppliers whereas US supplier have 50-70% of export / European market. There is a built in imbalance in the world market meaning that the Europeans have to win market share based on the performance of their weapons rather than political influence or price.
Changes to the environment - Domestic and Export markets
Decrease in military spend across Europe meaning:
Reduction in major procurement budgets:
Existing programmes delayed / cancelled
40% cut in defence spending next 5 - 8 years "no" new major programmes foreseen
Platforms in service longer
Product evolution through Technology insertion
More cost effective Through Life Capability Management
Increasing US penetration of UK market:
No counter to the short term view
Seduction of "Off the Shelf" solutions
Industrial contraction
Competition no longer effective option
Customer coherence across Europe increasing
Desire for greater pull through of research into products
Guided Weapons - Delivering Precision Effects
Implementing UK Foreign Policy demands flexible and adaptable Military Capability deployable Globally
Precision Effects are the culmination of overall Military Capability chain
Deter, Coerce, Disrupt, Defeat, Destroy
Key Operational and Political benefits of Precision Effects result in reduced :
Collateral Damage and Fratricide
Risk to Military personnel
Team CW
The changing defence procurement policies have led the UK to the realisation that the requirement for precision weapons cannot be met by off the shelf procurement. In 2006, a White Paper n UK Defence Industrial Strategy was issued, and this highlighted the importance of key Sovereign Technologies necessary for the sustainment of precision weapons.
A grouping of UK industry and MoD agencies was formed in response to this and Team Complex Weapons was born. The Team is currently working on contracting methods where by the key technologies might be sustained and industry and MoD partnerships strengthened.
Team Complex Weapons now has a hub at MBDA in Bristol, and this accommodates representatives from industry and the MoD.
Summary
MBDA will continue to play a leading role in the Team CW initiative.
They will attempt to win more of the long term support business on their weapons
They will need to continue to change to a faster, more responsive business.
They will need to gain more and more synergy from European programmes and joint research projects.
Ed.