{"id":36865,"date":"2023-11-30T19:38:39","date_gmt":"2023-11-30T19:38:39","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2023\/11\/30\/seven-questions-with-bae-systems-us-chief-executive\/"},"modified":"2026-08-08T01:00:33","modified_gmt":"2026-08-08T01:00:33","slug":"seven-questions-with-bae-systems-us-chief-executive","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/battlefield-tech\/2023\/11\/30\/seven-questions-with-bae-systems-us-chief-executive\/","title":{"rendered":"Seven questions with BAE Systems\u2019 US chief executive"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The war in Ukraine has been fought with two sets of equipment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On one end are the systems that may define the future of warfare: drones \u2014 many of them single use \u2014 designed to spot or strike the enemy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other are the systems that have defined warfare for generations: artillery and armored vehicles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Much of the equipment in this second category \u2014 from the M777 howitzer to the Bradley Fighting Vehicle \u2014 are made by BAE Systems. And yet they may not be for much longer, as the company winds down old production lines.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Like others in industry, BAE Systems is preparing for the future, as seen in its <a href=\"https:\/\/www.baesystems.com\/en-us\/article\/bae-systems-signs-agreement-to-acquire-ball-aerospace\">$5.55 billion acquisition of Ball Aerospace this August.<\/a> But, at the same time, the war in Ukraine is leading many countries to reconsider their supply of traditional systems, including artillery.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ahead of the Reagan National Defense Forum, a symposium of industry and government defense officials in California, Tom Arseneault, the chief executive of BAE Systems\u2019 U.S. business, spoke with Defense News about how his company is balancing both needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This interview was edited for clarity and length.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Last year, you discussed horizons and that there was a short-, a medium- and a long-term one for your planning. What are the horizons that you see now \u2014 in particular the short-term horizon of Ukraine?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What we\u2019re all working on now across industry is more of a short- to medium-term horizon, where we\u2019re working to backfill that which has been donated [to Ukraine]. That\u2019s everywhere from munitions to combat vehicles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The [Department of Defense] has seen an opportunity where they\u2019ve sent some equipment they\u2019ve had in their inventory for some time to replace that with newer equipment. Case in point for us, the old M113s \u2014 a Vietnam-era armored personnel carrier \u2014 [300] of those have been sent to Ukraine. We don\u2019t make those anymore and haven\u2019t in some time. But the Army is ordering AMPVs, the armored multipurpose vehicle, which is in production today. They\u2019re adding to the orders they already had, in order to eventually backfill those.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">M777s \u2014 a towed artillery piece with a 155mm gun originally contracted with the Marine Corps \u2014 [and] there\u2019s on the order of 1,000 of those around the world. Demand dried up for those, and we basically went out of production with that equipment back in 2018. Now, given the elevated visibility of the importance of artillery in conflicts like this, it\u2019s gotten some renewed interest. The Army is working with us to reconstitute that.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>That\u2019s restarting the production line that was dropped off in 2018, because of the demand that we\u2019ve seen from Ukraine?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, that of the Army, but also through the Army for foreign military sales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Are there other systems or capabilities you\u2019re now starting to revisit that might be hitting the end of their production lines?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Bradley \u2014 it\u2019s on the order of a couple hundred Bradley Fighting Vehicles that have been sent over [to Ukraine]. So while we were for planning purposes winding down over the next couple years, the Bradley line, we\u2019ve got orders for hundreds more of the newer variant.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>The war in Ukraine has shown a mix of low-end and high-end tech \u2014 artillery but also FPV [first-person view] drones. How do you straddle that as a company?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Ukrainians are pulling [different kinds of tech] all together and integrating it in ways I don\u2019t think anybody would have originally predicted. That creates challenges and opportunities<b> <\/b>for their supply chains and for our involvement in those.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019re helping out with some more modern equipment in the form of our laser guided munitions \u2014 these are small rockets. We\u2019re using those for counter UAS now, where you can get a laser on an enemy drone, and then fire these to take them out of the sky. That\u2019s more modern technology coming off the production line today being used for what was an emergent need.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>So that\u2019s an example of the kind of work you\u2019re doing to meet the future need?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I think that is. In the wars in Iraq and Afghanistan, there was the rise of the improvised explosive device. That sort of came out of nowhere and became a real problem. Well, now there are flying IEDs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Having an inexpensive 2.75 inch rocket with a laser guidance kit [intercepting it], that\u2019s a good equation. In the past, [the rocket] was originally designed as an air-to-ground munition, as the old unguided rockets were. Now it\u2019s being used in a counter UAS application really born out of this need in Ukraine.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>To what extent has the difficulty in getting a full appropriations bill passed this year complicated your planning?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Industry has gotten accustomed to this delay, and the DoD has as well in the way they time their spending. But especially when the demand is up and they have these needs on multiple fronts, it\u2019s a big problem. While it has not manifested itself yet, the longer this pushes out into 2024, it will borderline cripple a number of services, in terms of their plans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We didn\u2019t talk about that long horizon, which is unchanged and that is the Indo Pacific threat \u2014 more near-peer adversary, higher technology. The bulk of the DoD budget is pointing at that threat, particularly around investment accounts. That\u2019s where time is the enemy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>You said the damage hasn\u2019t materialized quite yet. When would we reach that point?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When you start getting down into the late first half, early second half of next year. By the time you get to the half year, you\u2019re three months away from the government fiscal year coming to an end.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tom Arseneault spoke with Defense News about the war in Ukraine and balancing current and future 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