CFN Consultants’ Post

Insightful post. The comparison of UK’s defence strategy in terms of GDP and future planning, with that of Canada’s current thinking, is interesting. Especially considering the impending election due next year (2025). Where will Canada place itself in context of it’s future contribution to both the national and global defence policy?

It was encouraging to see Labour commit £2.9 billion of additional funding to the MoD in yesterday’s Budget and reaffirm the target to spend 2.5 percent of GDP on defence.    While funding is essential, it is strategy that makes sense of the numbers. The next two major milestones for the industry will now come in 2025 with the outcome of the Strategic Defence Review, and further development of Labour’s industry strategy.    Despite increases in headline budgets, it’s essential that we maximise the value of every pound invested in our defence ecosystem. We need to foster a culture of agility within defence, to ensure we can focus resources where they’re needed most in a fast-moving geopolitical context. Read the full Statement: https://lnkd.in/emGy5PjF

📯 MOD regional expenditure with industry 2023-4 - and other stats - published 21/11/24 📯 Viewers may wish to absorb the following, latest official set of UK defence industry statistics issued last week by MOD, https://lnkd.in/eJN4YZFq Highlights include: ➡️ £28.8 billion as the total MOD expenditure with UK industry and commerce in 2023/24, an 8% real terms increase compared to the previous year ➡️ 4% (down a point) is the proportion of direct MOD expenditure with Small and Medium-sized Enterprises (SMEs), £1.3 billion in practice. ➡️ 84% the proportion of MOD global expenditure with industry in the UK, inclusive of direct payments to UK industry, and indirect spend via foreign governments and Foreign Military Sales agreements with the US government where work subsequently takes place in the UK. 🏭 Below is Fig 2, the "heat map" of total Defence Expenditure with UK industry by Region. If nothing else, it helps to illustrate the continuing significance (and inconsistent legacy) of "place" in (defence) industrial strategy. 🏭 Take the North East: the £380m identified in the map below drops to a mere £140m if adjusted for regional population and yet it has the largest proportion (of that poor £1.3 bn cited above) spend with SMEs, at 15%. #MOD #defenceindustrialpolicy #MakeUKDefence #ukmfg #defenceindustrialstrategy #socialvalue #devolution

#DisruptiveTech 🔴 Waiting game can be fatal. Small to medium sized defence manufacturers are close to falling into administration, as they wait for the publication of the Strategic Defence Review (SDR). Defence companies had expected the government’s landmark review into the UK’s preparedness for war to be published around Easter. However, industry figures now fear the SDR will be published towards the end of the year, The Telegraph recently reported. While the government denies there is a moratorium on procurement spend, defence manufacturers understand there to be a ‘de-facto’ freeze on the limits of capital and resource department spending until the next spending review. They believe the government is reluctant to sign off on new procurement expenditure because it wants to include announcements in its SDR. #defence #defencemanufacturers #supplychain #SDR Campaign Catapult, Pravo Consulting

🚨 Critical Alert for UK Defence Manufacturers! 🚨 Small to medium-sized defence manufacturers in the UK are on the brink of administration as they await the Strategic Defence Review. This delay is causing severe cash flow issues and contract pauses, threatening the survival of many businesses. 🏭 Why it matters: The defence sector is a cornerstone of UK manufacturing, providing jobs and driving innovation. Immediate government action is crucial to prevent further economic fallout and ensure the stability of this vital industry. 🔗 https://lnkd.in/drtk_6Aj #UKManufacturing #DefenceIndustry #EconomicStability #SupportSMEs

India's Defence Sector: Opportunities and Projections Introduction: India's defence sector is set for substantial growth and investment opportunities in the coming decade. A recent the report forecasts significant increases in defence capital expenditure, highlighting a promising outlook for the industry. Opportunities in the Defence Sector: The report projects an impressive $138 billion in opportunities for India's defence sector over the next 10 years. This figure underscores the country's commitment to bolstering its defence capabilities and infrastructure. Key Projections: - Defence Capital Expenditure Surge: By FY30, India's defence capital expenditure is anticipated to soar to 37% of the total budget, marking a noteworthy escalation from the projected 29% in FY25. This substantial rise signifies a robust commitment to defence spending. - Budget Allocation: The report underscores the government's dedication to allocating a significant portion of the budget towards defence. With an estimated total budget of $1.5 trillion by FY30, defence expenditure is expected to reach approximately $555 billion, reflecting the prioritization of national security and modernization efforts.  Implications: - Economic Growth: Increased investments in the defence sector are poised to stimulate economic growth, with every $1 billion spent in defence contributing to the creation of approximately 25,000 direct and indirect jobs. Moreover, the defence sector's multiplier effect is estimated to be around 2.5, further amplifying its impact on GDP growth. - Strategic Preparedness: Enhanced defence capabilities will bolster India's strategic preparedness, ensuring the country's ability to safeguard its borders and interests effectively. With an estimated 70% of defence equipment sourced domestically by FY30, India aims to reduce its reliance on imports and enhance self-sufficiency. - Industry Expansion: The projected growth presents lucrative opportunities for both domestic and international players. With a targeted offset requirement of 30% for all defence contracts exceeding $1 billion, India's defence market offers substantial potential for investment, technology transfer, and collaboration. Conclusion: The projected surge in defence capital expenditure, coupled with opportunities worth $138 billion, underscores India's commitment to strengthening its defence sector. These figures not only signify significant economic contributions and strategic advancements but also position India as a key player in the global defence arena.  Note: The statistical data presented in this report is based on recent projections and reports. While efforts have been made to ensure accuracy, the figures are subject to change based on evolving circumstances and government policies. #DefenceIndustry #EconomicGrowth #StrategicPartnerships

Senate Estimates hearings will be held in Australia's Parliament on the Defence portfolio on Wednesday 6 November. Here are some questions we at Strategic Analysis Australia would like to hear answers to. Answers at the table by officials or the relevant ministers are often partial and not informative. Carefully worded, formal Questions on Notice tend to get better results. It’s not a comprehensive list; a lot of questions tend to be standing issues at estimates, such as ADF recruitment and retention and the gap between actual ADF numbers and its target, but even here, the ‘Defence Workforce Plan’ released on 5 November has some data to focus questions on (quite a few, it turns out – see last section below). An increasingly obvious and systemic issue is the growing word-action gap: Shiny documents & announcements are obscuring institutional failures across Australia's Defence organisation. Read the article here:

Useful reality check by Michael Shoebridge. Is stagnation at 2% of GDP realistic when the anti-democratic powers of the world see us as weak; when we have squandered so much of our defence investment through piss-poor political posturing (the 4 Ps); and we and our allies need to rebuild a resilient defence industrial capability?

UK firms to be prioritised under new defence industrial strategy - with job creation at the centre of plan #ukmanufacturing #shoutaboutukmfg #supportukmfg https://lnkd.in/edCmNH5d

#Budget2024 #defence #DepartmentofDefence #DepartmentofMilitaryAffairs #DRDO #DMA #DOD #DDP #DDR&D #DESW Well everybody focus on Income Tax , LTCG & STCG of Budget2024 The defence budget was something eye catching for the National Development & Security purposes. Key Takeaway From Budget 2024 on Defence Sector 1) Defence Sector - 12.9% of over all budget has been allocated In February, the defence allocation for FY24 was revised from Rs 5.94 lakh crore to Rs 6.24 lakh crore. Although the interim allocation for FY25 is slightly lower, it remains the highest among other ministries, constituting nearly 13% of the Central government's overall budgeted expenditure. Despite this substantial allocation, it is still below 2% of India's GDP. Breakdown of Defence Budget 1)28% or Rs 1.72 lakh crore, is dedicated to capital acquisitions 2)The Armed Forces' revenue expenditure (excluding salaries) is budgeted at Rs 92,088 crore, with defence pensions at Rs 1.41 lakh crore 3)Rs 7,651.80 crore is allocated for the Indian Coast Guard, and Rs 23,855 crore for the Defence Research and Development Organisation (DRDO) 4)Support For Defence Start Up - To foster innovation in the defence sector, the budget allocates Rs 518 crore to the iDEX scheme Defence Indigenisation The government’s Atmanirbhar Bharat initiative has also focused on India’s defence sector, which aims to promote indigenous production and reduce the country’s dependence on imports. The government is focusing on the defence industry as a key area to achieve self-reliance. During the last three financial years (2020-21 to 2022-23)For instance, "122 contracts have been signed for capital procurement of defence equipment by the MoD". Out of these, 100 contracts accounting for 87 per cent of total contracts value have been signed with Indian vendors for capital procurement of defence equipment In conclusion the Vocal For Local, increasing Geopolitical tensions across the Indian Borders needs more cautious approach. The budget on defence sector plays vital role not only on security purpose but on Defence indigenisation of imported stores ,Employment Generation, Research and Development,Ex-Servicemen Welfare etc Whats your view on Budget of Defence 2024