{"id":54494,"date":"2015-02-27T14:24:10","date_gmt":"2015-02-27T14:24:10","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=89eb4051b1681d90097148792cf207b1"},"modified":"2015-02-27T14:24:10","modified_gmt":"2015-02-27T14:24:10","slug":"speech-opportunities-for-uk-technology-companies-in-the-us-defence-market","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=54494","title":{"rendered":"Speech: Opportunities for UK technology companies in the US defence market"},"content":{"rendered":"
\n

Introduction<\/h3>\n

We couldn\u2019t have chosen a better venue to discuss our US defence relationship than the Cabinet War Rooms. <\/p>\n

Because this is where Churchill would discuss the progress of the Second World War\u2026on a daily basis with President Roosevelt\u2026 <\/p>\n

\u2026providing a reminder that ours is a partnership based on the firmest of historic footings<\/p>\n

In World War Two\u2026that unique combination of UK\/US expertise\u2026was perhaps personified in the Tizard Mission which produced a paradigm shift in radar technology.<\/p>\n

During the Cold War\u2026it was our special relationship that enabled us to strike the Polaris\u2026 and later Trident\u2026 agreements \u2026that strengthened both our nations in the face of the Communist threat.<\/p>\n

And today co-operation continues in all areas \u2026whether in intelligence\u2026in force protection\u2026 in airborne ISR<\/abbr>\u2026or in the interoperability of our force structures. <\/p>\n

Today\u2019s relationship<\/h2>\n

Of course, given the US\u2019s technological pre-eminence in many areas it is inevitable that we still purchase a significant amount of equipment from our American friends
\n\u2026from Huskeys and Harpoons to Ridgbacks and Reapers <\/p>\n

But this relationship is as deep as it is broad. <\/p>\n

Yes, we buy capability from the US. <\/p>\n

But often, as in the case of Rivet Joint, we find new and innovative ways to operate it. <\/p>\n

At the same time there are instances of reciprocity. <\/p>\n

So the C17 programme might be built by Boeing in the US but their high-tech international training centre is in Farnborough. <\/p>\n

While with the Chinook Fleet we get the best availability. <\/p>\n

At the same time the US remains one of our biggest customers. <\/p>\n

Official Statistics from UKTI DSO<\/abbr> cite 12% of UK defence exports going to north America last year, <\/p>\n

In 2013 the Department of Defense procured $1.5 billion in supplies, services, fuel and construction from UK entities \u2026 <\/p>\n

Plus there is the unseen but growing British content in the supply chains of US defence companies, which draws upon a gamut of dual use technologies.<\/p>\n

And while the US rarely procures platforms and major systems from overseas\u2026 when it does\u2026it often chooses British. <\/p>\n

Whether it is the US versions of the Harrier Jump Jet and the Hawk Jet Trainer in decades past. <\/p>\n

Whether it is our Rolls Royce MT30 engines or our Martin Baker Ejection Seats fitted in every F-35 which will come into service for decades to come.<\/p>\n

Some of the companies here today provide excellent examples of British success trading in the US defence market:<\/p>\n

\u2026.Ultra Electronics, TMD, Cobham, Astute Electronics \u2026. to name but a few.<\/p>\n

Each demonstrating that you don\u2019t have to be a prime contractor to break into the market. <\/p>\n

Yet what has sustained our relationship and kept it fresh over the years is continual collaboration. <\/p>\n

Once upon a time we were pioneering jet propulsion <\/p>\n

Today we are working on the most advanced jet aircraft on earth in the form of the F35 \u2026with the UK proud to be the US\u2019s only level one partner. <\/p>\n

We\u2019re also partnering today on a wide range of 100 other S&T<\/abbr> projects. <\/p>\n

Working hand-in-glove to develop the Common Missile Compartment<\/p>\n

\u2026the infra-red counter measures for aircraft\u2026
\n\u2026and advanced night vision capability.<\/p>\n

New opportunities<\/h3>\n

Yet you\u2019re here today because that priceless prize of working with the US is growing. <\/p>\n

Like us \u2026 the US is looking to the future. <\/p>\n

As equipment technology advances exponentially\u2026 as advanced surface-to-air and anti-access area weapons proliferate. <\/p>\n

\u2026as multiple potential adversaries increasingly compete to acquire fifth generation technology
\n\u2026the US has seen its technological advantage
\n\u2026the bedrock of its defence for the past 60 years
\n\u2026gradually erode <\/p>\n

So it is looking to make another giant leap forward
\n\u2026upgrading, developing and fielding breakthrough technologies and systems.<\/p>\n

That is why the US, last year, launched its new Defence Innovation Initiative, the Third Offset Strategy, which I discussed with Deputy Secretary Work in December.<\/p>\n

Bob Work is asking serious questions about how to improve US capability in a host of areas: <\/p>\n

How can it increase its resilience and reduce its dependence on space technology? <\/p>\n

How can it increase its underwater capabilities to counter anti-access and area denial, and focus on autonomous systems and underwater payloads?<\/p>\n

How can it maintain air dominance and continue to strike in non-permissive environments? <\/p>\n

How can it counter electronic warfare, maintain stealth and develop jam-resistant missiles? <\/p>\n

And how can it keep up to speed with emerging technologies and concepts such as autonomy and advanced manufacturing
\n\u2026when investment in the commercial sector is outstripping military research and development? <\/p>\n

The challenge for the US is that it must do all this while still driving down its costs\u2026
\n\u2026something with which we\u2019re only too familiar in the UK.<\/p>\n

Last year, Frank Kendall, the US Secretary of Defense for Acquisition, Technology and Logistics unveiled his acquisition reform program \u2018Better Buying Power 3.0\u2019. <\/p>\n

A strong sign that \u2026.like us\u2026 in tough times \u2026.our American counterparts see the virtue of cooperative research, co-development, and co-production. <\/p>\n

Why pay to duplicate technology solutions that already exist elsewhere?<\/p>\n

We believe the determination of the US to broaden its horizons\u2026 is now opening up new opportunity for its allies as I was discussing with Frank only on Sunday at IDEX<\/abbr> in Abu Dhabi.<\/p>\n

This is especially so for those British companies, with the expertise the US is looking for. <\/p>\n

And that\u2019s why you\u2019re here today. <\/p>\n

A big challenge<\/h3>\n

I\u2019m not saying it will be easy to break into the American defence market place. <\/p>\n

I\u2019m speaking as someone who spent some years working in the US myself, so I am under no illusion as to the challenges.<\/p>\n

I know the US Defence market is truly vast. <\/p>\n

10 times the size of our own in this country. <\/p>\n

For example, the US Special Operations Command, its smallest service, is roughly the size of the British Army <\/p>\n

And that the US Marine Corps, also regarded in the US as \u201csmall\u201d, is the size of the whole of UK defence\u2026and can muster a similar spectrum of capability.<\/p>\n

All this presents genuine challenges, especially to small businesses <\/p>\n

Yet at the same time it brings huge possibilities beyond anything we see in Europe.<\/p>\n

So you need to know where to start.. <\/p>\n

\u2026how to find the right route to market
\n\u2026and how to establish good local partners <\/p>\n

You need not just the ability to grow\u2026deliver at scale \u2026and at the pace such a large customer demands. <\/p>\n

\u2026but to get to grips with an unwieldly procurement machine that is considerably more complex than UK MOD<\/abbr>
\n\u2026where the preference for domestic suppliers is enshrined in law
\n\u2026and where export controls and the infamous International Traffic in Arms Regulation control the proliferation of US technology. <\/p>\n

Don\u2019t be put off<\/h3>\n

But don\u2019t be put off. <\/p>\n

If you\u2019re already concentrating your business on exportability, modularity and innovation\u2026. <\/p>\n

\u2026and we\u2019ve rewritten our policy to ensure \u2018exportability\u2019 must be actively considered from the very beginning of our own acquisition cycle<\/p>\n

\u2026then you\u2019re in the right place<\/p>\n

And today\u2019s sessions will help you with some of the practicalities. <\/p>\n

The US experts in this room <\/p>\n

\u2026from our MOD<\/abbr> staff in Washington,
\n\u2026.UKTI<\/abbr>\u2019s Defence and Security Organisation,
\n\u2026and BIS<\/abbr> in London
\n\u2026stand ready to use their excellent local knowledge
\n\u2026to help you disentangle the complex web of regulation
\n\u2026decode the unfathomable jargon
\n\u2026and navigate around the labyrinthine US procurement structure <\/p>\n

I would also like to thank the experts from law firms Crowell & Moring, and Stoock <\/p>\n

\u2026as well as from Bloomberg Government for the time they have taken and the interest they have shown in supporting UK industry.<\/p>\n

\u2026by travelling from the US to share their professional advice with you today. <\/p>\n

Bilateral agreements<\/h3>\n

Yet their advice alone isn\u2019t the only thing that should give you the confidence to go to America. <\/p>\n

We\u2019ve also drawn up a raft of bilateral agreements to help your cause.<\/p>\n

In December I renewed the Reciprocal Defence Procurement MOU<\/abbr> <\/p>\n

It is designed to create a level playing field for UK and US companies accessing each country\u2019s market. <\/p>\n

We\u2019re also coming up to the second anniversary of the Defence Trade Cooperation Treaty which eases the export control burden for certain categories of technology. <\/p>\n

Colleagues in MOD<\/abbr> are now working with authorities in the US to ensure the treaty retains its value in the wake of reforms that have begun easing US export control regulations in some technology areas. <\/p>\n

And we also have the Science & Technology communiqu\u00e9 that I signed with Frank Kendall last year.<\/p>\n

It is there to accelerate our joint programmes of research in disruptive technologies \u2026whether in situational awareness, satellites and communications<\/p>\n

And it is already paying dividends. <\/p>\n

There are currently around 100 distinct R&D<\/abbr> programmes underway between the UK and the US. <\/p>\n

\u2026an increased number of US exchange scientists and engineers in the UK. <\/p>\n

\u2026and a new scheme for short term exchanges between UK and US scientists. <\/p>\n

The value of the Communiqu\u00e9 has been affirmed by the development of co-operation into quantum technology, autonomy and directed energy.<\/p>\n

While the recently signed master submarine research agreement, and related agreements on undersea technologies mean greater opportunities in those areas as well.<\/p>\n

Inevitably, the names of these agreements matters less than what they will do for you. <\/p>\n

Again our experts here today can give you chapter and verse. <\/p>\n

Defence Growth Partnership, new solutions centre and DSIEP<\/abbr>
\n<\/h3>\n

But today\u2019s event isn\u2019t the only place you\u2019ll find advice to help your business succeed when crossing the Atlantic <\/p>\n

Our Defence Growth Partnership now provides a collaborative environment for the best brains from industry, academia and government to come together.<\/p>\n

\u2026making the UK defence industry more sustainable and more competitive
\n\u2026and assisting industry in providing leading edge capability for our armed forces around the world. <\/p>\n

Our new Defence Solutions Centre is designed to act as a fulcrum for international requirements.<\/p>\n

By utilising the latest market data and making the most of its understanding of the UK\u2019s value chain\u2026 it will create capability and technology roadmaps to respond to future international opportunities. <\/p>\n

Undertaken in an environment where the UK remains a leader in academic research. <\/p>\n

\u2026let\u2019s not forget the UK still publishes 16% of the world\u2019s top quality research<\/p>\n

\u2026 still punching way above our weight<\/p>\n

\u2026it will help British business make the most of its great potential <\/p>\n

Meanwhile, our Defence and Security Industrial Engagement Policy is encouraging overseas companies\u2026including several US primes\u2026to work with the UK\u2019s defence and security sector.<\/p>\n

We are working with UKTI DSO<\/abbr> to offer showcase events for non-domiciled primes to meet the UK defence and security supply chain, engineer to engineer, I have attended 2 such events in the past year, with Boeing and Raytheon, where each met over 100 UK supply chain SMEs<\/abbr>, and real business has resulted.<\/p>\n

We are seeking to use this policy to help our industry become better placed to secure exports as well as support front line capability. <\/p>\n

Investment in innovation<\/h3>\n

Bi-lateral agreements and top quality advice will help you punch above your weight when competing in the American market.<\/p>\n

But the government is also helping you in another way
\n\u2026we\u2019ve put aside investment for innovation\u2026the lifeblood of defence <\/p>\n

We\u2019ve protected our annual investment in S&T<\/abbr>\u2026so it remains at least 1.2% of the defence budget\u2026 <\/p>\n

And we\u2019re channelling that money into our Centre for Defence Enterprise\u2026 <\/p>\n

\u2026which is already developing novel high risk, high potential benefit innovations
\n\u2026such as game changing quantum technologies
\n\u2026new advanced materials
\n\u2026and a powerful neutron microscope
\n\u2026that will allow us discover materials for faster planes, new and better computer chips and feather lightweight kit for our military<\/p>\n

Conclusion<\/h3>\n

So my message to you today is that when it comes to the US market
\n\u2026the market is changing <\/p>\n

Becoming more transatlantic.<\/p>\n

In both directions.<\/p>\n

So please enjoy the day.<\/p>\n

Chat to the experts.<\/p>\n

Share your experiences. <\/p>\n

Make the connections who can help you break into this market.<\/p>\n

The US accounts for almost 37% of worldwide defence expenditure \u2026 in a market estimated back in 2013 to be over US$1.7 trillion <\/p>\n

That\u2019s a massive opportunity <\/p>\n

And we\u2019re keen to do what we can to help you get your share. <\/p>\n

As for those concerned the journey ahead might seem a long one \u2026let me leave you with a bit of sage advice from Churchill himself:<\/p>\n

\u201cYou can always count on Americans to do the right thing, after they\u2019ve tried everything else\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Speech by Mr Philip Dunne, Minister for Defence Equipment, Support and Technology.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/54494"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54494"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/54494\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}