Simon Gadd Counsellor, Defence Acquisition and Technology British Defence Staff United States, Washington US / UK Interoperability - the Importance of an International Defence Industry 1
UK / US Relationship The US and UK enjoy a strategic, global partnership UK-US defence co-operation is today the broadest, deepest and most advanced of any two nations UK has a leading role in seeking to sustain international peace and security Permanent member of the United Nations Security Council leading role in NATO member of G7, G20 and the Commonwealth Some 4,000 UK personnel are currently deployed on 21 operations in more than 25 countries around the world Royal Navy MCM vessels form an integral part of US 5 th Fleet, maintaining navigational freedom in the Persian Gulf The USAF and RAF have operated alongside each other in the CENTCOM Region continuously since 1990 There are currently 3 UK General Officers are DCG in US Forces formations, US Brigadier General DCG of 3(UK) Division 2
Reserves in UK Armed Forces Whole Force Approach Regulars, Reserves, Civilians Reserves employed across all military roles Reserve Forces:- Reinforcement Resilience Regeneration Reconstitution Additional mass and specialist skills Flexible terms and conditions Royal Navy 29,500 regulars / 2,500 reserves (including Royal Marines) British Army 78,400 regulars / 26,600 reserves Royal Air Force 30,800 regulars / 2,100 reserves 3
UK / US Interoperability Global threats require an co-ordinated, consolidated and coherent response. Partners bring capacity and add resilience and international authority. UK and US armed forces have a long history of co-operation. Clear ambition for interoperable forces The Royal Navy and US Navy share the same technology for the nuclear deterrent under the 1962 Polaris Sales Agreement. UK Coy (LI) seamlessly integrated under the command of a US Battle group on enhanced Forward Presence in Poland The RAF and USAF jointly operate and CoMan a fleet of 20 Rivet Joint aircraft 4
UK Defence Spending Budget Over 35.1bn per year Committed to spending 2% of GDP on Defence (NATO) Rationalise and better equip the Armed Forces Independent Nuclear deterrent (4 Successor submarines) Major programmes:- 2 New Carriers F35 P8a Protector etc. Smaller more modern Defence Estate SDSR 15 Joint Force 2025 full spectrum of capabilities Defence budget increase: 0.5% per year in real terms from 2016/17 to 2021/2022. 5
UK Defence Spending UK is the 5 th largest defence spender in the world ($56.2Bn in 2015/2016). This is one tenth of the spend of the US. 1. United States $597.5Bn 2. China $145.8Bn 3. Saudi Arabia $81.9Bn 4. Russia $65.6Bn 5. United Kingdom $56.2Bn The UK are only one of six NATO Allies to meet the 2% of GDP spending commitment and one of four NATO Allies to spend 20% of this on major equipment and associated research and development. 6
Integrating effect of Defence Spending The UK is a significant customer for US defence industry: the 2015 Security and Defence Strategic Review (SDSR) included commitments worth $25Bn to US industry over ten years between 2016 and 2026. Programme Quantity Total Cost ($M) F-35B Joint Strike Fighter 138 $17,940.0 P-8A Aircraft & Associated Support 9 $3,200.0 Certifiable Predator B Remotely Piloted Aircraft 26 $1,000.0 AH-46E Apache Attack Helicopters 50 $2,300.0 C-17 Upgrades & Logistics Support 7 $400.0 E-3D AWACS Upgrades 4 $63.0 CH-47 Chinook Upgrades 60 $48.0 C-130J Upgrades 14 $21.0 TOTAL: $24,972 This equates to over 7% of the UK defence budget over 10 years being invested at prime contractor level in the US. 7
Integrating effect of Defence Spending Exports The UK is the second largest global defence exporter (based on a rolling 10 year basis) North America accounts for almost a quarter (23%) of total UK defence exports UK exports ~ 1.2Bn ($2Bn) of defence-specific goods/services to the US each year. 8
Impact of UK Defence Spending Economic benefit jobs US/UK companies make significant contributions to each other s labour force US Employment with UK-Parented Defence Companies UK Employment with US-Parented Defence Companies UK Company with US Subsidiary Employees US Company with UK Subsidiary Employees BAE Systems, Inc. 28,000 Lockheed Martin UK Rolls Royce North America 6,700 Northrop Grumman UK 10,000 (includes supply chain impact) 5,000 (includes supply chain impact) Meggitt US 6,045 Leidos UK 1,500 Cobham 3,700 Raytheon UK 1,400 Thales North America 3,500 Boeing Defence UK 1,200 Ultra Electronics 2,851 General Dynamics UK 750 QinetiQ North America, Inc. 2,630 Harris UK 600 QinetiQ US Holdings 2,350 Rockwell Collins UK 500 JCB Manufacturing, Inc. 250 CACI Ltd 323 Martin Baker Aircraft 130 L-3 Marine Systems UK 140 MBDA Missile Systems, Inc. 40 Textron Systems Electronic Systems UK TOTAL: 56,196 Huntington Ingalls Industries 20 46 TOTAL: 21,479 9
Integrated supply base: enables innovation Tap into Science Technology Engineering & Mathematics (STEM) talent: Alleviate STEM shortages in the respective nation s defence market. Capitalising on innovation and collaboration through joint research and development such as: International Technology Alliance between the US, UK, Academia and Industry. Biologically Inspired Technology for Unmanned Autonomous Systems (BIOUAS). Ensure capability advantage, technological superiority and interoperability: Common approach to building partner nation capability. Collaborative working on testing and experimentation: Joint experimentation and prototyping. Accelerated development and transition. 10
Integrated supply base: Benefits Driving down costs: Achieve financial savings through competition and burden sharing. Increase opportunity for traditionally non-defence companies to enter the market. Security of supply from larger industrial base: Preserve critical elements of the industrial supply chain. Reciprocal industrial arrangements between nations (Security of Supply MoU). Agility in the supply chain: Access to an assured, secure and agile supply chain. Ready access to Military Off the Shelf (MOTS) and Commercial Off the Shelf (COTS) capabilities. Reputational benefit: US/UK has a strong reputation for engineering and innovation among end-users. Integration can enhance export opportunities both within respective countries and in foreign markets. 11
3rd Battalion The Princess of Wales s Royal Regiment on joint exercise (Northern Strike) with the U.S. National Guard 12
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