Boeing’s KC-46 Pegasus tanker program will be a key revenue driver for the firm. Image: Boeing
Recent reports of significant layoffs by Boeing have proven to be of little concern to Wall Street investors, who shrugged those actions off as an efficiency move. Not only that, Boeing stock rose dramatically to a new high last week, and during a two-day period jumped 28 points, sending the Dow Jones Average to a new all-time high. Continue reading →
F-35A Weapons Carriage (Lockheed Martin Photo by Matt Short)
As defense markets continue to adapt to dynamic economic and political forces, the major players continue to hold their entrenched positions.
Regional turmoil in parts of the Middle East, Europe and Asia continue to drive the need for more spending. Further, international sales for many firms are set to expand, driven by fear over the Islamic State (also known as ISIS), a more bellicose Russia, and regional pressures from China and North Korea. Continue reading →
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 →
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 →
U.S. Defense Secretary Jim Mattis released a memo on January 31 providing initial guidance for strengthening the armed forces through an FY17 budget amendment, the FY18 budget request, and the FY19-FY23 Future Years Defense Program. The memo is a direct response to a memorandum on rebuilding the U.S. armed forces, released by the president on January 27. Mattis outlines a three-phase approach: improve warfighter readiness; achieve program balance by addressing pressing shortfalls; and build a larger, more capable, and more lethal joint force. Those objectives are centered around the completion of the FY17 budget process, and the release of the next two budget requests.
Welcome to the Forecast Roundtable Podcast. Forecast Roundtable brings together expert analysts, industry professionals, and government officials to discuss the latest issues in the aerospace and defense markets. Produced at the Forecast International headquarters, Forecast Roundtable offers unique and in depth insight and discussion on any range of topics from geopolitics to aerospace and defense markets. Topic suggestions are welcome. Continue reading →
The following is a list of the Top 200 U.S. Government Contractors in fiscal year 2015 ranked by the total amount of contract funds awarded. In FY2015, the U.S. Government awarded a total of $439.0 billion in contracts down 1.5 percent from $445.8 billion in FY2014. Of the $439 billion in total contract funds, $273.7 billion, almost 62 percent, were awarded by the Department of Defense (DoD).
Halifax class frigates HMCS Charlottetown (left) and HMCS Montréal (right) Source: Cpl Johanie Maheu, Formation Imaging Services, Halifax, Nova Scotia.
Canada’s new Liberal government released its first defense budget in March, and the spending plan portends a continued struggle for the military’s troubled acquisition system. The budget plan estimates that defense spending will total CAD18.6 billion in the 2016/17 fiscal year (April 1 to March 31), which is about CAD578 million less than projected under the previous Conservative government’s 2015 budget plan. Planned spending of CAD19.5 billion in 2017/18 would actually be higher than the CAD18.7 billion figure contained in last year’s budget, but that increase hides a more alarming issue. Namely, the 2016 budget takes some CAD3.7 billion worth of procurement funding allocated for large-scale projects in the 2015/16 to 2020/21 timeframe, and defers it to beyond 2020. Continue reading →
The A-10 gets a new lease on life. Source: U.S. Air Force
U.S. Defense Secretary Ash Carter offered a preview of the Pentagon’s FY17 budget request on February 2, but offered relatively few concrete details. The request will total $582.7 billion, which includes the base budget and funding for Overseas Contingency Operations. The only individual appropriation title that was mentioned was Research, Development, Test and Evaluation, which will receive $71.4 billion, up from $69.8 billion in FY16. Continue reading →
New Alcoa spin-off will focus on aerospace. Source: Alcoa
Alcoa’s strategy of expanding its operations in downstream markets has reached its zenith with the announcement that the company will split in two by mid-2016.
Over the past few years, Alcoa has been building up its aerospace business via acquisitions in order to capture a greater share of this booming market. Traditionally, the company has focused on its upstream businesses, primarily aluminum and alumina. However, with a glut in aluminum markets brought on by increased Chinese exports, the company decided to break its operations into two publicly traded corporations. Alcoa’s traditional business, which also includes better-performing bauxite and alumina, will retain the Alcoa name. The new “value-add” company has yet to be named. Continue reading →