First, we’ve confirmed that Minister Peter Luff MP will be taking a tour of the exhibition hall on 21st February 2012, before his 12:15pm Honorary Keynote Speech.  Second, General Dynamics will be providing an exclusive update to their Scout SV Programme during the Innovation Stage, also on 21st February 2012 at 15.45.  Third, we’ve just confirmed over 2500 visitors to the exhibition hall – from over 40 countries!

There’s a lot scheduled to happen, and we’re excited – and we hope you, our readers, can join us there. 

Today is the last day you can apply for a free pass to the International Armoured Vehicles Exhibition – so if you’re keen on meeting and networking with key players from the armoured vehicles industry or learning and hearing from senior representatives from 12 world-leading OEMs at the Innovation Stage, then get your free pass today.

Sign up online at http://bit.ly/ACP4JJ.

Defence IQ team members will be covering the event and looking for fresh content to bring you – so stay tuned!  We’ll be at Stand A10 if you’re going.

We’re looking forward to meeting you there.
The Armoured Vehicles Team

…But I am going to give you a brief run-down of some of the major armoured vehicle news over the last few weeks.

The main talking point recently has been around the report published by the Public Accounts Committee (PAC) entitled ‘The cost-effective delivery of an armoured vehicle capability.’ The report revealed that since 1998 the UK MoD (the Department) has spent £1.1 billion on the process of acquiring a new generation of armoured vehicle, but its faltering and abortive methods have meant none of its principal vehicle programmes have yet been delivered. None.

While the financial crisis has left budgets decimated in almost every government department, the reports claims that armoured vehicle programmes have been hit hardest. “Over the past six years the Department has removed £47.4 billion from its equipment programme up to 2020-21,” the report states. Here’s the key statistic; of that £47.4 billion funding gut, £10.8 billion (23%) has been removed from armour vehicle projects alone.

Crisis then? Panic stations? Not exactly – or, as David Cameron might have regrettably said, “calm down dear.”

Strip back the sexy headlines and sensational prose and you’re just left with little more than a (nother) cheap jibe at the MoD and its procurement culture. Hardly anything new there.

What the armoured vehicle industry should concentrate on with the publication of this report is the fact that the UK government will spend £5.5 billion on armoured vehicle programmes over the next decade. The £10.8 billion ‘cut’ is blow to future capability, but it hardly means Cameron will cease signing checks.

Indeed, Defence Minister Peter Luff said in response to the PAC report:  “We recently announced a £1 billion upgrade to the Warrior infantry fighting vehicle fleet and over the next ten years we plan to invest a total of £5.5 billion in armoured vehicles.”

That said, the future of the FRES (Future Rapid Effects System) programme remains under a cloud. I expect we’ll learn more about its fate in 2012 (disclaimer: that is not a 2012 prediction).

And in other news…..

£400M COUNTER-IED PACKAGE A £400m package of protected vehicles and Counter-Improvised Explosive Device (C-IED) technology, including 100 Foxhound  patrol vehicles, has bee announced by Defence Secretary Philip Hammond to further improve the protection of British Forces in Afghanistan.

FORCE PROTECTION ACQUISITION COMPLETES General Dynamics announced the successful completion of its tender offer to purchase all of the outstanding shares of common stock of Force Protection, Inc., for a price of $5.52 per share in cash…

AZERBAIJAN PROCUREMENT Azerbaijan’s Ministry of Defence Industry (MDI) will produce and hand over 60 additional Matador and Marauder mine-protected armoured vehicles to the Armed Forces, military sources told APA…

BUSHMASTER’S RESERVED FOR AUSTRALIA Australian Parliamentary Secretary for Defence, Senator David Feeney said: “This Government will ensure that all Reserve Armoured Corps will receive Bushmaster Protected Mobility Vehicles to provide protected transport for our troops.”

$150 MILLION KUWAIT DEAL Force Protection Industries, Inc., announced it has received two contracts for the extension of field service representatives (FSR) in Afghanistan and Kuwait from U.S. Marine Corps Systems Command, totalling approximately $150.3 million.

$7.5 BILLION PROJECT OVERLANDER The $7.5 billion Project Overlander will provide the Australian Defence Force with around 7,500 new vehicles over the next decade. Rheinmetall MAN Military Vehicles Australia and  Thales Australia were down-selected.

So that’s it. We successfully managed to steer clear of an annual review and (almost) avoided any 2012 predictions.

Happy New Year all. Stay tuned for regular updates on all armoured vehicle industry news, business developments and project updates (disclaimer: that’s a 2012 fact, not prediction).

Guest post written by Andrew Elwell, Defence IQ.

Follow me on Twitter @DefenceIQ

^^ Since this officially ends my blog post I can mention something about 2012 predictions now……… Defence IQ is producing a research report on the Armoured Vehicle market in 2012 and beyond. Your expert opinions would be greatly appreciated for inclusion in the report. You can contribute by clicking on the following link and filling out a short survey: http://www.surveymonkey.com/s/TJ69GLX

All respondents will receive a FREE exhibition pass to the International Armoured Vehicles 2012 conference in Farnborough next month if you register before February: www.internationalarmouredvehicles.com

It’s been a busy few weeks for the armoured vehicle community. If you could only use one word to sum it up?

SALE. The sale of companies and the sale of vehicles.

Sale: General Dynamics bought Force Protection.
Sale: Lockheed might buy Nexter and Panhard.
Sale: The Austrian government is selling off the majority of its tanks. 

Here’s a quick introduction to some of the top stories in the IAV community over the last few weeks:

Will General Dynamics’ bold strategic move for Force Protection pay off?

General Dynamics (NYSE: GD) announced that it was set to acquire Force Protection, Inc. (NASDAQ: FRPT) for approximately $360 million (£228 million).

Speaking to Defence IQ, Rob Doolittle, Staff Vice President of Communications at General Dynamics, stated that the deal will allow the company to increase its traction in the armoured vehicle and survivability products market.

“Our plan is to leverage the combined strengths of FPI and General Dynamics Land Systems to pursue new opportunities (globally),” Doolittle explained in an email interview with Defence IQ.

Sold! Armoured vehicle mid-market set for wave of consolidation

Lockheed Martin is in discussions with French armoured vehicle manufacturers Nexter and Panhard as the companies look for ways to work together.

“We are exploring opportunities for collaboration,” Morri Leland, Lockheed’s Deputy Director for international Business Development in its Missiles & Fire Control unit told the Dubai Airshow.

Is this another sign that the armoured vehicle market is set for a wave of consolidation? The market cannot remain in limbo for much longer as there simply aren’t enough contracts to sustain the number of firms vying for them. Mid-market consolidation is inevitable.

MRO a no-go: Austria to scrap its armoured vehicles

The Austrian Army announced that it is purging its armoured vehicle fleet, reducing the number of tanks from 1,147 to less than 400 over the next two years. Some will be subject to a fire sale, from which the government hopes to raise $26 million (£17 million), while the rest will simply be discarded, although a few will be salvaged for spare parts.

Remember, conference tickets are available for purchase – buy them today so that you can sit in on the G6 Global Strategy Debate as well as the other sessions by top international military.  International Armoured Vehicles blog readers get a 25% discount off standard rates.  Just email kim.vigilia@iqpc.co.uk by referencing the IAV-Blog.

In addition, visitor passes are free for those who sign up before 23^rd December 2011 – sign up online for one at www.internationalarmouredvehicles.com.

Guest post written by Andrew Elwell, Defence IQ.

Follow me on Twitter @DefenceIQ

Interested parties may sign up online at www.internationalarmouredvehicles.com.

Defence IQ’s International Armoured Vehicles is the world’s largest meeting point dedicated to the armoured vehicles community, providing attendees 4 full days of networking, information-sharing and potential business opportunities.  The event will gather international military flag officers and technical experts from countries including  Canada, India, Italy, Oman, Pakistan, Sweden, Africa, Spain, Germany, Denmark, Finland, the Netherlands, as well as the UN and NATO, in addition to C-level decision-makers from global defence companies, all in one place. 

Attracting thousands of visitors each year, the exhibition hall will feature up to 100 of the leading defence companies from around the globe, as well as a specialised Armoured Vehicles Innovation Stage, with briefings from top OEMs, which so far includes:

• Tawazun (UAE)
• Iveco (Italy)
• Saab Group (Sweden)
• Barco Defense & Aerospace (Belgium)
• Fedders Lloyd (India)

 The Day One Innovation Stage Agenda has been confirmed and added to the event website online at www.internationalarmouredvehicles.com.

 The networking opportunities at the event have been significantly amplified for 2012 in order to facilitate direct communication between attending Military, OEMs and vehicle manufacturers, as well as SMEs and smaller components and technological suppliers.  In addition to moving to the FIVE in Farnborough, which will accommodate and enhance the visitor experience, the Defence IQ team has announced the addition of private meeting areas in the exhibition area, available for visitors to set up impromptu meetings.

 ”Our objective was to get in direct contact with our end-customer to hear their feedback, learn from their experiences and use the opportunity to discuss our product offering,” commented Mr. Hugo Burgers from Warn Industries Inc., in regards to the 2011 show.  “We are very pleased to say we achieved all of these goals.”

In addition to Force Protection, BAE Systems, Thales on the G6 Panel during the conference segment of the event, participating companies also feature prominent players in the armoured vehicles community, including OshKosh, Nexter, RUAG, Renault, Jankel, Drakensberg, DRS, Panhard, Beth-El Industries, and Hutchinson.

Visit the website at www.internationalarmouredvehicles.com to register for a free visitor pass to the exhibit hall. Interested parties wishing to attend the conference segment can send enquiries to Kim Vigilia at kim.vigilia@iqpc.co.uk.

Download the programme at http://bit.ly/oNkeSH.

Minister Peter Luff MP, Minister for Defence Equipment, Support and Technology, UK Ministry of Defence has been announced as the opening Honorary Keynote speaker for the International Armoured Vehicles event, taking place 20-23 February 2012 at the FIVE in Farnborough.

He will be speaking at 09.00 on the 21st February 2012, during the first day of the conference. The completed programme has been published on the event website, www.internationalarmouredvehicles.com.

General Sir Peter Wall, KCB, CBE, ADC Gen., Chief of the General Staff of the British Army will be providing the audience with the closing Keynote Address on the 22nd February 2012 at 16.00. 

The keynote addresses will provide a circularity to the event, which sees the UK hosting a range of over 21+ Generals and 14+ OEMs from over 17 countries.

The full speaker faculty has been listed online at http://bit.ly/qyyyXg.  The 15-page event brochure is available for free as a download on http://bit.ly/oNkeSH. Visit the website for updates as Defence IQ will post additional information on sessions details shortly.

A few weeks ago Marketresearch.com unveiled its latest report, Global Armored Vehicles and Counter IED Vehicles Market 2011-2021, which analyses the expected trends and statistics within the global armoured vehicles market over the next decade.

Although the news isn’t universally good for everyone (when is it ever?), when you look at some of the headlines, there are some pretty impressive figures in there. In particular, some of the best news seems to be reserved for those who work with the Asian markets, whose governments are going against the grain and increasing their defence budgets. Here is what our Armoured Vehicles Team thinks about some of the key takeaways:

In 2011, the global armored vehicles and counter IED vehicles market is valued at over US$25 billion*

Whilst the report makes the point that the amount of in-service vehicles looks set to decline as military operations come to an end in Iraq and Afghanistan, it remains true that for all modern militaries, the armoured vehicle continues to provide the lynchpin in all ground campaigns, and is the recipient of ongoing continuous investment worldwide. With the role of Improvised Explosive Devices continuing to be of paramount importance in modern warfare worldwide, it is clear that the armoured vehicles market is set to see some exciting new developments over the next few years, particularly in the areas of new armour and survivability technologies.

In Asia, defense expenditure and modernization is set to increase [...] Asia will increasingly require armored and counter IED vehicles to combat territorial disputes and to cater to the large troop size of regional forces*

Today, some of the fastest-growing militaries in the world are to be found in Asia. Top of the list are likely to be China and India, but Malaysia, Singapore, Indonesia and Thailand are all experiencing a boost in the numbers of serving personnel. And these countries are showing no sign of slowing down their defence spending – leading to a situation of rapidly-expanding forces investing in new equipment, new systems and new technology.

Strong economic growth, territorial disputes, domestic violence and the large troop size of regional forces will create a significant demand for armored vehicles in Asia, which will account for a share of 24.1% of the total armored vehicles market during the forecast period**.

Unsurprisingly then, many vendors view the region as being crucial to their long term growth plans. Whilst not the biggest market (the number one spot still being reserved for the North America countries), Asia will account for almost a quarter of all armoured vehicles business over the next 10 years, representing a huge potential market for suppliers and offering opportunities for real long-term growth.

If you are looking to clarify what the future requirements and procurement plans of Asian countries are, you may be interested in the conference programme for Armoured Vehicles Asia 2011, taking place 19th-21st October in Singapore.

 
*Source: http://www.marketwire.com/press-release/global-armored-vehicles-counter-ied-vehicles-to-fall-by-1-billion-by-2021-1547081.htm

**Source: http://www.prnewswire.com/news-releases/reportlinker-adds-the-global-armored-vehicles-and-counter-ied-vehicles-market-2011-2021-121984393.html

A letter from the IAVs Team
Guest post from Duraid J., Production

 The team and I made a promise to keep you updated on the International Armoured Vehicles conference and exhibition as much as we can before the big event in February, and so I’m really excited to write this post.

First things first – an introduction.  My name is Duraid Jalili and I’m the conference producer for IAVs 2012, working under the wing of Keith Mallon (You may have met him onsite – slim gentle-Irishman with a quick wit, always running around the exhibition hall?) 

 Well, it’s a strong team this year, and we’ve jumped headfirst into how we can make IAVs bigger and better.  I know Kim’s written about the background of our research, so I’ll get straight into what’s new for 2012:

• We’re moving to Farnborough – as the blog title announces, it’s official.  After 10 years inLondon, we’re moving to FIVE@Farnborough for 2012!  This is a huge deal for us, as it opens up the doors to new and bigger ventures.  Plus, it’s just a 30 minute train ride from Waterloo, London, and is near the heartland of the British Army.  How’s that for symbolic and easy access?
• More opportunities for informal discussions – we’ve added in two days worth of round table discussions, speed networking, and have integrated a level of intimacy to certain sessions to enhance the debate.  There’s also talk of a new Awards System, in which speakers and key military personnel judge current products…
• A more holistic perspective on the future of armoured vehicles requirements – I’m in the middle of my research right now with ISAD TCNs, NATO member states as well as some highly interested Middle East and Indian officers so that I can integrate a multi-national perspective, and increase the level of input from newly developing international militaries in the programme.

 And this is just the beginning – I’ll be sending out the draft agenda in 2 weeks time, so you’ll probably start receiving some news from me leading up to the event. Please feel free to send me a note, a comment, anything in regards to the event – the door is always open.

Before I finish up this post, a friendly reminder – if you haven’t already, please visit the website at www.internationalarmouredvehicles.com for updates, check out our Download Centre or sign up for the Armoured Vehicles Newsletter (email armouredvehicles@iqpc.co.uk).  Visitor registration is already open if you know you’re attending this year.

We’ve also just posted some photos to our Flickr account: www.flickr.com/photos/armouredvehicles

Thanks for reading, and don’t hesitate to drop me a message. – Duraid

Just yesterday, an online Turkish news publication was reporting on the expanding international sales of the country’s defence industry, into regions further afield their more traditional markets in the Middle East:

“We are happy to see these companies now chasing deals in parts of the Far East they have not yet sold their products to, and there are initial signs of penetration into difficult markets like the U.S. All of that is very encouraging,” a senior procurement official with a portfolio to support Turkish arms exports said, on condition of anonymity.

This follows two recent announcements from FNSS, a joint venture between BAE Systems and Turkey’s Nurol Holding. In February, FNSS signed a $600 million deal with Malaysia for the joint development and manufacturing of 257 8×8 Pars amphibious armoured vehicles, whilst last month FNSS declared that it would be supplying the Indonesian Armed Forces with 257 wheeled armoured vehicles (see post below).

The Malaysian and Indonesian markets currently seem to be among the most active in terms of armoured vehicle procurement, and it has even emerged that they are looking to purchase from each other – the Jakarta Post last week revealed that the Malaysian military had expressed interest in acquiring Indonesian armored vehicles during a meeting between the new Malaysian chief, Gen. Dato’ Sri Zulkifeli Bin Mohd Zin, and Indonesian President Susilo Bambang Yudhoyono.

“They didn’t specifically discuss weaponry, but touched on the issue of 6×6 armored vehicles. Malaysia wants to purchase them,” Indonesian Military (TNI) Commander Adm. Agus Suhartono said after the meeting.

Listening to delegate feedback it would seem that many western companies perhaps find it difficult to discern the different requirements of each separate Asian country – and where they are prioritising spending. However it would also appear that, as European militaries continue to face heavy budgetary restraints, large armoured vehicle primes and sub-contractors are more and more willing to overcome the geographic distance and increase their efforts to penetrate and increase their presence in the Far East.

If you are looking to clarify what the future requirements and procurement plans of Asian countries are, you may be interested in the conference programme for Armoured Vehicles Asia 2011, taking place 19th-21st October in Singapore.