Covid-19: Defence Industry and Events Update, Technology Responses 3/3

10 min Source: YouTube Janes

BLUF

Lower fiscal returns in the first quarter of 2020 for defence industry exposes geopolitical vulnerablilites.

Summary

The last in the Jane's webinars looks at the Q1 2020 results for defence industry globally. Across the EU and US the impacts were felt most by the commercial, rather than defence, sectors with some aircraft sales reduced by >20%. However, Defence’s longer lead times for acquisitions has provided an economic buffer for larger companies. Across our own region, the impact of disrupted supply chains has hit aviation maintenance and overhaul services, as well as aviation workforces. What are the potential national security concerns to this development? The Indo-Pacific has been experiencing significant defence spending and modernisation programs. Those nations economically weakened by the pandemic experiencing disruptions to their modernisation programs, their exporting of defence capabilities and/or manufacturing services, may be more open to offers of foreign investment loans. What would you consider to be the geopolitical implications of this in our region?