Rapid Fire Sept. 25, 2013: Secular Trends May Force Diversification Onto Defense Businesses

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* Industry consultant Loren Thompson is convinced defense contractors need to start serious diversification efforts into commercial sectors: “[E]very factor that moves military demand is signaling a prolonged downturn in the market for what defense companies make. The only reason that isn’t already obvious to everybody in the sector is it takes a long time […]

* Industry consultant Loren Thompson is convinced defense contractors need to start serious diversification efforts into commercial sectors:

“[E]very factor that moves military demand is signaling a prolonged downturn in the market for what defense companies make. The only reason that isn’t already obvious to everybody in the sector is it takes a long time for sequester-driven cuts in budget authority to turn into program outcomes.”

* Harris won the US Army’s Mid-Tier Networking Vehicular Radio (MNVR) competition, worth up to $140.7M for more than 2,500 radio sets.

* The US Army will host an industry day to discuss improving Land Mobile Radio (LMR) acquisition in Ft. Gordon, GA, on Oct. 29.

* Experience has taught the US Army that its light/medium forces need more firepower. With only 1/3 as many of the problematic Stryker AGS left in its Stryker brigades, the Army is considering a 30mm unmanned turret along the lines of Elbit’s UT-30. Given the Stryker’s off-road limitations, however, there are also second thoughts about the canceled M8 Buford light tank, which was transportable in C-130 aircraft.

* Uralvagonzavod (UVZ) and Renault Trucks Defense will co-develop a new infantry fighting vehicle (IFV) with a 16km-range 57mm gun, following a cooperation agreement signed by the 2 companies in February. Note that Renault Trucks has been part of Volvo Group since 2001 and thus only shares its brand name and logo with the Renault car maker.

* DCNS CEO Patrick Boissier recently bemoaned the fact the French government was again about to thin its FREMM frigate order book. The DGA procurement agency quickly [in French] let its displeasure known (“don’t bite the hand that feeds you!”) but the row didn’t stop there. Today Defense Minister Jean-Yves Le Drian reminded Boissier who’s the boss, since the French state is both DCNS’ main customer and shareholder. Le Drian confirmed a total of 11 FREMMs to be delivered by 2025, and 6 Barracuda submarines.

* The Pentagon listed the units set to deploy in the next rotation to Afghanistan.

* Some of the Afghan interpreters that were supposed to be on a fast track to a visa allowing them to immigrate to the US are seeing these visas revoked by the State Department because of anonymous anti-terrorism tips. But these linguists come recommended by the American troops they worked with for years, while the tips may well come from the Taliban. Lives of locals who supported NATO’s campaign in Afghanistan are at stake.

* According to the Washington Times, a confidential memo issued by USCENTCOM gives the US Army 60 days to address security shortcomings of its controversial Distributed Common Ground System (DCGS-A).

* From the US Army War College’s Strategic Studies Institute: an assessment of the DoD strategy for operating in cyberspace [PDF].

* US Secretary of State John Kerry is expected to sign the UN Arms Trade Treaty today. This is a symbolic gesture as it will never be ratified in the Senate.

* Roll Call has the latest on how Senate Democratic appropriators intend to play out the coming budget/debt ceiling debates, with the rationale for continuing resolution timing calculations.

* Chris Krueger from financial firm Guggenheim Partners explains why he estimates the risk of a shutdown of the US federal government at a rather high 40% in the video below:

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