Three New Embraer Aircraft to Make Paris Air Show Debut

KC-390 Take Off. Source: Embraer

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Embraer plans to conduct a flight display of three new aircraft at this year’s Paris Air Show. The Brazilian aerospace company will display its commercial E195-E2 airliner, Legacy 450 business jet, and KC-390 military multirole transport. Continue reading

EU Taking Steps to Bring Harmony to Its Discordant Defense Market

by Dan Darling, International Military Markets Analyst, Forecast International.

After years of talk with little to show for it, the governments of Europe are finally moving forward with long-held cooperative defense ambitions through the auspices of the European Union. The announcement by the EU on June 7 of a European Defense Industrial Program co-financed by members to the tune of EUR500-EUR590 million annually through 2020, thereafter growing to EUR1-EUR1.5 billion annually, marks the launch of an effort to bring commonality and unity to an otherwise fragmented market. Continue reading

Gulf Dispute Reaches Boiling Point

by Derek Bisaccio, International Military Markets Analyst, Forecast International.

U.S. President Donald Trump attends meeting with Gulf Cooperation Council leaders on May 21, 2017.
Source: White House

Early on June 5, a number of Arab countries announced in concert their decision to sever ties with Gulf State Qatar. The move by the four countries – Bahrain, Egypt, Saudi Arabia, and the United Arab Emirates (UAE) – came just days after a hacker group announced it would release a trove of emails purportedly belonging to the Emirati Ambassador to the United States. Continue reading

Switzerland Begins Plotting Future Air Defense Solutions

by Dan Darling, International Military Markets Analyst, Forecast International.

Swiss F/A-18 Hornet. Source: Defense Industry Daily

Switzerland’s long-term air-defense plans are beginning to come into view following the unveiling by the Swiss Department of Defense, Civil Protection and Sport (DDPS) of recommendations by an expert group charged with examining the country’s combat aircraft and air defense requirements. Continue reading

Headwinds are Building Against Future Growth in Mexican Defense Spending

by Bill Ostrove, International Military Markets Analyst, Forecast International.

Mexico Army paratroopers. Image: Wikipedia.

The fight against drug cartels and organized crime remains the primary driver of defense spending by Mexico. Since 2006, the nation’s military has worked closely with national and local police to combat trafficking networks and organized criminal groups.  As Mexico’s economy has improved and operations against drug cartels have continued, defense spending has steadily increased. Continue reading

Rockwell Expands and Diversifies with B/E Aerospace Buy

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

An employee from Rockwell Collins’ new Interior Systems business building airline cabin seats at its Winston-Salem, North Carolina-based facility. Source: Rockwell Collins

With commercial aviation production continuing apace, Rockwell Collins decided it wanted a bigger slice of the pie and expanded its operations with the $8.3 billion purchase of cabin interiors specialist B/E Aerospace.   As a result, Rockwell is now an $8 billion company, employing some 30,000 people and commanding a diverse content base on a variety of commercial and business aircraft.        Continue reading

NASA’s FY18 Budget Allotment Offers a Few Surprises, Though Agency is Largely Unscathed

by Bill Ostrove, Space Systems Analyst, Forecast International.

NASA’s Crew Exploration Vehicle (CEV)

President Donald Trump’s Fiscal Year 18 federal budget proposal – released on May 23 –  includes a few surprises for NASA.  While much has been made of the many cuts to social programs in the president’s budget, NASA’s funding remains largely unchanged – with a few notable exceptions. Continue reading

Emirati Regional Military Footprint Continues to Grow

by Derek Bisaccio, Military Markets Analyst, Forecast International.

Emirati BMP-3 during Joint U.S.-UAE Military Exercise in Kuwait in September 2016
Source: U.S. Army

“The Federation preserves our identity and enhances our capabilities.  It is a strong shield for protecting the security and stability of the Arabian Gulf Region.” – Sheikh Khalifa bin Zayed al-Nahyan, President of the United Arab Emirates and Emir of Abu Dhabi

Amid the instability in the Middle East that followed the 2010 and 2011 protest movements, as well as a perceived vacuum as the United States asserts a desire to extricate itself from Middle Eastern conflicts, the United Arab Emirates (UAE) has seen a growing need to put its military to use securing regional interests. Continue reading

Acquisition Programs Dominate Pentagon’s FY17 Spending Increase

 by Shaun McDougall, Military Markets AnalystForecast International.

The defense bill added a dozen Super Hornets for the U.S. Navy.
Source: U.S. Navy

The Pentagon’s FY17 budget was signed into law on May 5, more than halfway through the fiscal year.  The legislation couldn’t come soon enough, as the military has been operating under a series of three continuing resolutions that funded the department at FY16 levels.  CRs bring with them a host of difficulties, including restrictions on launching new programs, and leave many existing programs overfunded or unfunded.  The Pentagon has become quite adept at navigating CRs, which have sadly become the norm in Washington.  However, this year’s scenario was particularly troubling, as CRs in recent years haven’t lasted more than a few months. Continue reading

Denel Taps New Markets, Seeks New Partners at Home and Abroad

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

Denel’s Rooivalk Attack Helicopter. Source: Denel

Despite some recent management troubles, Denel remains stable.  The company plays a key role in the self-sufficiency of South Africa’s defense industry, and the government will continue to support the firm with work. That said, government work has been declining of late due to tight budgets, forcing Denel to adapt. Continue reading