Military and Defense Opportunities and Challenges
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Agenda Budgets and Spending Programs Foreign Military Sales Additive Manufacturing Titanium Demand??
Global Military Titanium Demand Global Military Titanium Demand Forecast: 2009, 10.5 kt Global Military Titanium Demand Forecast: 2015, 13.5 kt Rest of World 1 China 1.5 China 1.6 Rest of World 1.9 EU & NA 8 EU & NA 10 Source: Roskill, Fifth Edition, 2010, Table 132: World: Forecast demand for titanium mill products, 2015 (kt)
Top 5 Military Spenders in 2012 800 700 600 Billions of USD 500 400 300 200 100 0 USA China Russia UK Japan 2011 2012 Source: Stockholm International Peace Research Institute Yearbook 2012 (Table 3.3), and 2011 (Table 4.2)
IHS Jane Study Billions of USD 160 140 120 100 80 60 40 20 0 Global Arms Trade 2008 2012 2020e Two things are happening: Budgets are shifting east and global arms trade is increasing competition, said Paul Burton, senior manager of IHS Jane s DS forecast. At this rate, defense trade between countries will have more than doubled by 2020. This is the biggest explosion in trade the world has ever seen. Source: IHS Jane Study, June 2013
Decrease in JSF Build Rates 200 180 160 140 JSF Build Rate 120 100 80 60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2007 2014 Source: Teal Group 2007 and 2014
Foreign Military Sales DoD has surpassed State Dept in foreign spending FY2012 FY2013 Country Estimated Estimated Country Allocation Allocation Israel $ 3,075 Israel $ 3,100 Afghanistan $ 2,327 Afghanistan $ 2,505 Pakistan $ 2,102 Pakistan $ 2,228 Iraq $ 1,683 Iraq $ 2,045 Egypt $ 1,557 Egypt $ 1,563 Jordan $ 676 Jordan $ 671 Kenya $ 652 Nigeria $ 599 Nigeria $ 625 Tanzania $ 571 Ethiopia $ 580 South Africa $ 489 Tanzania $ 531 Kenya $ 460 Total $ 13,808 Total $ 14,231 Source: Congressional Budget Justification Summary Table, FY2013, Country/Account Summary (spigots) FY2012 estimate and FY2013 request tables
Programs Western Europe NH 90 Russia New 2.5-ton light helicopter T-50 PAK FA Fighter South Korea F-35 KAI T-50 India P-8 Chinooks Apache Photo: Shutterstock
Programs Afghanistan Mi 17 Iraq Stryker Infantry carriers Israel V-22 KC 135 Qatar NH90 AH-64 Photo: battlefield.wkiia.com
Additive Manufacturing We are aggressively deploying additive manufacturing across all of our business areas. We do see great innovation with purpose and an entire family of applications. Source: National Defense Magazine, March 2014 - Steve Betza, Corporate Director of Hardware Engineering and Advanced Manufacturing at Lockheed Martin
Military Build Rates 1200 1000 800 Build Rates 600 400 200 0 2013 2014 2015 2016 2017 2018 2019 Military Rotocraft Fighters Transports Source: Teal Group 2014
Titanium Content per Aircraft 80 70 60 Buy-weight in MTs 50 40 30 20 10 0 1976, F-15 1978, F-16 1979, Black Hawk 1981, Super Stallion 1983, F/A-18 1984, Seahawk 1995, C-17 1997, Gripen 1997, B2 Bomber 2001, Rafale 2005, F-22 2011, F-35 2013, A400M Source: Roskill, Sixth Edition, 2013, Table 81: Western World: Titanium buy-weights for commercial and military aircraft
Global Military Titanium Demand 14 Global Defense Sector Titanium Demand by Location: 2009-2013 12 Thousands of MTs 10 8 6 4 2 0 2009 2010 2011 2012e 2013f US China CIS Western Europe Other Source: TZMI Titanium Metal Annual Review 2012, REF 8349
Military and Defense Opportunities and Challenges