"Israeli Industries are the 'Silicon Valley' for the Global Defense Sector"
"Israel is an excellent technology and R&D center. In Israel the defense R&D process is faster and cheaper relatively to the US", said Michael Coulter, president of international operations of DRS Technologies, in an exclusive interview
Ami Rojkes Dombe | 21/06/2016
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Source / copyright : DRS Technologies, Inc.
The US defense company DRS Technologies, a subsidiary of the Leonardo Company, have five collaborations with major Israeli defense industries in developing Israeli innovative defense technologies, products and military systems to compete on large scale US Government programs.
"We are focused on US customers primarily in the Army and Navy also in the US Air Force. For us, working with Israeli industries is an advantage because the development that is done in Israel is much quicker and low cost relatively to similar development in the US", said Michael Coulter, president of international operations of DRS Technologies in a special interview to Israel Defense website. "We know what the requirements are for programs under the US Government budget and we know how to match these requirements with the capabilities of the Israeli defense industries."
DRS Technologies was acquired by the Italian Leonardo concern (formerly Finmeccanica) in 2008 with the intention of owning a well-established "pure" American defense company, fully operational, which is familiar with the US procurement procedures of the US Department of Defense. DRS Technologies is represented in Israel by ATG - David and Asaf Onn.
One of the first DRS Technologies projects carried out in Israel was with IMI Systems – the development of hydraulic launcher bridgehead installed on M1A1 Abrams tanks for the US Army, called JAB (Joint Assault Bridge). In 2012, the US Army bought two demonstrators from DRS. In May 2016, DRS Technologies was awarded a contract by the US Army to manufacture and deliver 365 JAB systems, totaling of about US $400 million.
In another project, DRS Technologies collaborates with Rafael in marketing Rafael's "Trophy" APS (Active Protection System) system for the US Army armored vehicles. In view of the challenges of the US Army in Europe, the US Army intends to acquire APS systems in two different routes. The first route is a quick purchase of an existing, combat proven system – the Israeli Trophy system. The second route is the development of a modular system named MAPS. In the first route, the US Army will purchase a number of existing combat proven APS systems in the course of the next two years, while the development of MAPS should take at least five more years for maturity and final testing.
DRS Technologies is also having "Teaming Agreements" with Bet-El Industry, promoting air filtration systems to the US Army and with RADA to develop radar systems to identify small, low-flying airborne threats for the US Marines Corps and the US Army.
DRS Technologies is also collaborating with Roboteam, competing for a large US robots program named CRS-I to develop personal carried robots for the US Army.
"The United States Secretary of Defense is always asking us for new and more cost effective military technologies. He understands that these technologies will not come only from the major American industries," says Coulter. "This is why we maintain strong connections with defense companies in Israel. Their innovations remind me of the 'Silicon Valley'.
"Another common ground between Israel and the United States is the similar defense and homeland security challenges we face in the Middle East. When we examine the requirements of the US Department of Defense, some are not related only to the Middle East, they are very much related to Europe as well. For example, the requirement to obtain APS for armored combat vehicles emerged from the joint US and European command."
Which future technologies are you looking for?
"We have noticed that one of the challenges of the modern battlefield is the need for more energy," says Coulter. "Smart systems which are installed in all future armored vehicles will require lots of energy. One direction is the development of integrated propulsion solution that combines electric motor in an internal combustion engine. The US Army was very active in this field, investing in the Striker APC during the war in Afghanistan and in Iraq. We at DRS have invested in R&D in this important area and we are looking for a partner to develop such future sophisticated technology. Another future subject for R&D is the Laser technology. The US Navy in particular is looking for such technologies and DRS would like to be a player in this arena. We intend to bring to Israel in the very near future the CEO, Bill Lynn, and the CTO of DRS Technologies to meet with various Israeli defense industries and we hope that more business collaborations will be developed around their visit."
For an Israeli company, what are the advantages of cooperating with DRS Technologies?
"To be able to sell to the US Department of Defense you must know how the US defense processes are working. It is not easy. You should be in constant touch with the customers, Army, Navy or Air Force in order to understand their needs and requirements. For an Israeli company of any size, to create military business in the US Is not easy, hence, a business relationship with DRS Technologies could be an advantage," explains Coulter.
"In addition to the efforts made by DRS in selling Israeli military technology to the US, the Israeli developed product becomes a full US product, which also allows selling it under the FMS to other foreign countries around the world. A country under FMS can buy a US product from the US Government at the same price as the US government is buying, in large quantities for its own armed forces.
"Another advantage is the direct contact with the Leonardo Company (previous Finmeccanica), owner of DRS Technologies. Since the marketing systems of the two companies are connected, all the products that DRS Technologies markets and promotes are also introduced to Leonardo customers in almost all the countries in the world.
"Buying a product that the United States armed forces are using is naturally an advantage for the end customer, because of the technical logistic support, technical data and training he receives. If a customer buys the Abrams M-1 tank, he is not buying it only because of the very high quality of the tank itself, but also because he receives a complete package of a war machine from the United States, which includes the integrated tank systems, instruction, joint training, maintenance, etc. All of this is needed in order to operate the tank in the best operational and economic way. This is a significant advantage."
Where is the US defense market headed?
"The US defense budget is the largest in the world, and it will continue to be so. Therefore, the US market will continue to be a major target for any US or Israeli defense company," says Coulter. "If you take any US defense company, you will see that between 50-100 percent of their sales are to the US domestic market. In reality, it is more like 75-95 percent, and exports make up a small portion of the activity. In DRS Technologies, exports are about 25 percent of the business, which is considered as quite high.
"After the US withdrew from Afghanistan and Iraq, there were several years of decline in the US defense budget and many US companies have started to shift gravity towards export. However, this trend was halted, and in the last three years, the defense budget was steady and even slightly increased. This could partly be attributed to the increasing demands in the Middle East and Asia. However, the main reason for the increase is probably the periodic renewal programs of legacy US systems. For example, DRS Technologies took part in an upgrading project of a submarine fleet for the US navy. There are some systems that the US must upgrade every few years, regardless of global conflicts and that process contributes to an increase in the US defense budget."
http://www.israeldefense.co.il/en/c...ries-are-silicon-valley-global-defense-sector
"Israel is an excellent technology and R&D center. In Israel the defense R&D process is faster and cheaper relatively to the US", said Michael Coulter, president of international operations of DRS Technologies, in an exclusive interview
Ami Rojkes Dombe | 21/06/2016
Send to a friend
A+A-Size
Share on
Share on
Source / copyright : DRS Technologies, Inc.
The US defense company DRS Technologies, a subsidiary of the Leonardo Company, have five collaborations with major Israeli defense industries in developing Israeli innovative defense technologies, products and military systems to compete on large scale US Government programs.
"We are focused on US customers primarily in the Army and Navy also in the US Air Force. For us, working with Israeli industries is an advantage because the development that is done in Israel is much quicker and low cost relatively to similar development in the US", said Michael Coulter, president of international operations of DRS Technologies in a special interview to Israel Defense website. "We know what the requirements are for programs under the US Government budget and we know how to match these requirements with the capabilities of the Israeli defense industries."
DRS Technologies was acquired by the Italian Leonardo concern (formerly Finmeccanica) in 2008 with the intention of owning a well-established "pure" American defense company, fully operational, which is familiar with the US procurement procedures of the US Department of Defense. DRS Technologies is represented in Israel by ATG - David and Asaf Onn.
One of the first DRS Technologies projects carried out in Israel was with IMI Systems – the development of hydraulic launcher bridgehead installed on M1A1 Abrams tanks for the US Army, called JAB (Joint Assault Bridge). In 2012, the US Army bought two demonstrators from DRS. In May 2016, DRS Technologies was awarded a contract by the US Army to manufacture and deliver 365 JAB systems, totaling of about US $400 million.
In another project, DRS Technologies collaborates with Rafael in marketing Rafael's "Trophy" APS (Active Protection System) system for the US Army armored vehicles. In view of the challenges of the US Army in Europe, the US Army intends to acquire APS systems in two different routes. The first route is a quick purchase of an existing, combat proven system – the Israeli Trophy system. The second route is the development of a modular system named MAPS. In the first route, the US Army will purchase a number of existing combat proven APS systems in the course of the next two years, while the development of MAPS should take at least five more years for maturity and final testing.
DRS Technologies is also having "Teaming Agreements" with Bet-El Industry, promoting air filtration systems to the US Army and with RADA to develop radar systems to identify small, low-flying airborne threats for the US Marines Corps and the US Army.
DRS Technologies is also collaborating with Roboteam, competing for a large US robots program named CRS-I to develop personal carried robots for the US Army.
"The United States Secretary of Defense is always asking us for new and more cost effective military technologies. He understands that these technologies will not come only from the major American industries," says Coulter. "This is why we maintain strong connections with defense companies in Israel. Their innovations remind me of the 'Silicon Valley'.
"Another common ground between Israel and the United States is the similar defense and homeland security challenges we face in the Middle East. When we examine the requirements of the US Department of Defense, some are not related only to the Middle East, they are very much related to Europe as well. For example, the requirement to obtain APS for armored combat vehicles emerged from the joint US and European command."
Which future technologies are you looking for?
"We have noticed that one of the challenges of the modern battlefield is the need for more energy," says Coulter. "Smart systems which are installed in all future armored vehicles will require lots of energy. One direction is the development of integrated propulsion solution that combines electric motor in an internal combustion engine. The US Army was very active in this field, investing in the Striker APC during the war in Afghanistan and in Iraq. We at DRS have invested in R&D in this important area and we are looking for a partner to develop such future sophisticated technology. Another future subject for R&D is the Laser technology. The US Navy in particular is looking for such technologies and DRS would like to be a player in this arena. We intend to bring to Israel in the very near future the CEO, Bill Lynn, and the CTO of DRS Technologies to meet with various Israeli defense industries and we hope that more business collaborations will be developed around their visit."
For an Israeli company, what are the advantages of cooperating with DRS Technologies?
"To be able to sell to the US Department of Defense you must know how the US defense processes are working. It is not easy. You should be in constant touch with the customers, Army, Navy or Air Force in order to understand their needs and requirements. For an Israeli company of any size, to create military business in the US Is not easy, hence, a business relationship with DRS Technologies could be an advantage," explains Coulter.
"In addition to the efforts made by DRS in selling Israeli military technology to the US, the Israeli developed product becomes a full US product, which also allows selling it under the FMS to other foreign countries around the world. A country under FMS can buy a US product from the US Government at the same price as the US government is buying, in large quantities for its own armed forces.
"Another advantage is the direct contact with the Leonardo Company (previous Finmeccanica), owner of DRS Technologies. Since the marketing systems of the two companies are connected, all the products that DRS Technologies markets and promotes are also introduced to Leonardo customers in almost all the countries in the world.
"Buying a product that the United States armed forces are using is naturally an advantage for the end customer, because of the technical logistic support, technical data and training he receives. If a customer buys the Abrams M-1 tank, he is not buying it only because of the very high quality of the tank itself, but also because he receives a complete package of a war machine from the United States, which includes the integrated tank systems, instruction, joint training, maintenance, etc. All of this is needed in order to operate the tank in the best operational and economic way. This is a significant advantage."
Where is the US defense market headed?
"The US defense budget is the largest in the world, and it will continue to be so. Therefore, the US market will continue to be a major target for any US or Israeli defense company," says Coulter. "If you take any US defense company, you will see that between 50-100 percent of their sales are to the US domestic market. In reality, it is more like 75-95 percent, and exports make up a small portion of the activity. In DRS Technologies, exports are about 25 percent of the business, which is considered as quite high.
"After the US withdrew from Afghanistan and Iraq, there were several years of decline in the US defense budget and many US companies have started to shift gravity towards export. However, this trend was halted, and in the last three years, the defense budget was steady and even slightly increased. This could partly be attributed to the increasing demands in the Middle East and Asia. However, the main reason for the increase is probably the periodic renewal programs of legacy US systems. For example, DRS Technologies took part in an upgrading project of a submarine fleet for the US navy. There are some systems that the US must upgrade every few years, regardless of global conflicts and that process contributes to an increase in the US defense budget."
http://www.israeldefense.co.il/en/c...ries-are-silicon-valley-global-defense-sector
