The U.S. State Department has approved the sale of 18 F/A-18E/F Super Hornets and associated equipment to Canada as part of a potential deal worth $5.23 billion, according to a September 12 announcement from the U.S. Defense Security Cooperation Agency (DSCA). The announcement outlines the potential sale of 10 F/A-18Es, eight F/A-18Fs, eight F414-GE-400 engine spares, APG-79 radars, 100 AIM-9X-2 Sidewinder Block II missiles, 30 AIM-9X-2 Sidewinder Block II Captive Air Training Missiles, and eight AIM-9X-2 Sidewinder Block II Special Air Training Missiles, as well as additional avionics and electronics. Continue reading
by Edward Nebinger, Forecast International.
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
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
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 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.
By Matthew Beres, Forecast International.
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).
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
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