The defence industry briefing

The news, views and numbers you need to know about this month

News in numbers


Australian defence budget for 2018–19


of GDP: Germany's 2025 defence spending goal, missing the 2% NATO commitment


Additional funding needed per year for the Big Six US Army modernisation projects


Updated cost of the US Navy's USS Gerald R. Ford carrier, breaching Congress cap by $120m to fix faults 

Quotes from the industry

“It's very, very important to have a permanent military presence on the island of Gotland. It’s a mechanized company, a tank company, with air defense systems. The control of Gotland is from a geo-strategic point of view very important for the situation in the Baltic Sea region.”

Swedish Defence Minister Peter Hultqvist telling DefenseNews about the decision to build up forces in Gotland. 

“It is a period of uncertainty that we are entering into right [now], how the whole world will respond to this latest development.”

Chief of U.S. Naval Operations Admiral John Richards advises increased levels of alertness after US withdrawal from an international nuclear deal with Iran.

“We have a strong opinion that we want to buy the best available defense material, wherever we want, because since 1992, when Finland decided to buy F-18 fighter planes, we have been practically married with United States defense technology, and we buy a lot of stuff, from Israel also. So for a country like Finland, which is militarily nonaligned and has territorial defense, [it] has to take care of defense on her own if needed.”

Finnish Defence Minister Jussi Niinist speaking to DefenseNews about Finland's procurement strategy. 

"We will bring every tool to bear against them in every corner of cyberspace.”

Howard Marshall of the FBI’s cyber division on a joint US and UK response to alleged Russian cyber attacks.

Around the world

News from militaries and defence departments around the globe 

China's first domestically designed carrier begins sea trials

The first aircraft carrier designed in China has left Dalian Shipbuilding Industry's shipyard in Liaoning to start sea trials. The trial aims to demonstrate the reliability and capability of the ship's propulsion systems, according to the People's Liberation Army Navy. Construction of the vessel began in November 2013. 

Source: defense-aerospace

US Navy's newest weapon is now under construction

Construction is underway on the US Navy's first Flight III cestroyer, Jack Lucas, which is set to join the fleet in 2024. Huntington Ingalls is building the ship, which incorporates Raytheon’s AN/SPY-6 air and missile defense radar which will boost its anti-air warfare and ballistic missile defence capabilities.

Source: DefenseNews

Britain and EU clash over access to Galileo satellite network

The UK will build its own satellite navigation system if British companies are excluded from the EU’s Galileo programme after Brexit, British Foreign Minister Boris Johnson said. The UK will not be excluded from using Galileo if relevant agreements are made, but as a third-party state it will not be allowed to participate in the system’s development, said the EU’s chief Brexit negotiator Michel Barnier. Development of a rival British satellite navigation system could cost £3bn according to industry experts. 

Source: Reuters

China and Russia are catching up with Western military power

The West can no longer rely on the strategic advance of its superior defence technology, as China and Russia are rapidly catching up in terms of capability and innovation, leading defence experts have said. In its Military Balance 2018 report, the International Institute of Strategic Studies warns that the Washington, Moscow and Beijing are systematically preparing for potential conflicts, and defence innovation in China and Russia has evolved to challenge the military supremacy of America and its allies and the West. 

Source: Independent

UK MoD faces £21bn budget shortfall: spending watchdog

The UK’s military could face a £21bn funding shortfall over the next decade, according to parliament’s public accounts committee. The spending watchdog said the MoD “simply does not have enough money to buy all the equipment it says it needs”. The report also warned that the majority of funds being tied to long-term projects means the MoD doesn’t have enough flexibility to spend on countering emerging threats in the cyber domain. 

Source: Guardian

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