Latest news with #defenseindustry
Yahoo
5 hours ago
- Business
- Yahoo
Government Contracting Symposium to be held at Vibrant Arena, Moline
The Iowa-Illinois Chapter of the National Defense Industrial Association (NDIA) will host the 16th Annual Midwest Government Contracting Symposium on Tuesday, June 3 and Wednesday, June 4 at the Vibrant Arena in Moline, according to a news release. This year's event focuses on examining the recent current events throughout the world and how the Defense Department will sustain and grow the U.S. Industry Base, Supply Chain, and Mission Command. This year's symposium will give attendees insight into the latest information in governmentcontracting and Army Doctrine, as well as allow them to take advantage of the chance to interact with key government and industry experts. 'This symposium offers two, jam-packed days of valuable content you won't want to miss,' says President of the IA-IL NDIA Chapter Natalie Linville-Mass. To register, visit here. Within the Quad Cities region, there are thousands of individuals and businesses contracting with organizations on the Rock Island Arsenal. The Quad Cities is ranked as the third most industrially diverse area in the United States, making this event crucial to its attendees and sponsors. The symposium grants these groups the opportunity to gather once a year and work to advance the goals of The Defense Department in this area. About the Iowa/Illinois Chapter of National Defense Industrial Association (NDIA) The National Defense Industrial Association is America's leading Defense Industry Association promoting national security. It is a non-partisan, non-profit association headquartered in Arlington, Virginia. The Iowa Illinois Chapter was founded in 1945 as an arm of the national association. It provides geographic coverage for Iowa and the western 1/3 of Illinois, furthering the national objectives and policies. Its mission is to champion issues contributing to the strength, resiliency, and capacity of the industrial base; build a vigorous, responsive. and collaborative community in support of defense and national security; and convene legal and ethical forums for an exchange of ideas, information, viewpoints, and capabilities. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
5 days ago
- Business
- Yahoo
Analysis-Europe's defence companies scramble for workers as business booms
By Michael Kahn, Christoph Steitz, Dominique Patton VELKA BITES, Czech Republic/FRANKFURT/PARIS (Reuters) -Pavel Cechal reckons the Czech company he works for could easily generate more business for its missile and drone engines to double its workforce, if only he could find the staff. His dilemma is shared by many defence companies in Europe, where governments are ramping up spending on ammunition, tanks and other arms in response to U.S. President Donald Trump's warnings that they should not rely so much on Washington. Cechal is vice president of operations at PBS Group, whose production facility in Velka Bites, a two-hour drive from Prague, employs 800 people. He is looking for more. "If they were available on the labour market we would hire most of them immediately. We have the business for it," he told Reuters, adding the firm had raised wages by 8% last year and plans another 10% hike in 2025 to attract talent. "We are now hiring at all levels of the company." While the bloc's 800 billion euro ($896 billion) defence spending push is expected to create hundreds of thousands of jobs over the next decade, the specially trained AI engineers, data scientists, welders and mechanics required are in short supply. Reuters spoke to more than a dozen companies, recruiters and workers who said that along with hiking wages and benefits, arms makers are poaching from other sectors and seeking potential recruits among local pupils and students. PBS Group has taken a step beyond cooperation with schools and universities, Milan Macholan, chief executive of the Velka Bites production facility said: "We also started our own training school where we generate our own employees." Since Russia's 2022 invasion of Ukraine, 78% of EU military procurement spending has gone outside the bloc, with the U.S. alone securing 63%, European Commission data show, partly because Europe's defence sector is fragmented between states. The EU plans to move a big chunk of that procurement to Europe and hopes its new Union of Skills training and hiring strategy will help fill the defence recruitment gap. In Russia, meanwhile, hiring by the well-funded arms sector is causing labour shortages elsewhere. COMPETITIVENESS CONCERNS Franco-German company KNDS, which manufactures the CAESAR self-propelled howitzer used in Ukraine, has expanded shifts at the company's main production site in Bourges in central France and is boosting hiring by 50% annually. Recruitment remains a key issue, said Nicolas Chamussy, managing director of KNDS France, adding that there was a limit to how much they could hike salaries. "Don't forget that we're in a war economy, but we're also in an economic war. If our wages increase in an uncontrolled way, we'll be less competitive," he said. AI experts who can develop autonomous weapons systems as well as people with expertise in products made in small volumes are in particular demand, industry participants said. "We're not going to manufacture a CAESAR in the same way as a Peugeot 308. We have to master very, very specific know-how which requires very particular skills. And those are rare on the job market," said KNDS spokesperson Gabriel Massoni. A boost in defence spending to 3% of GDP from the current NATO target of 2% would require as many as 760,000 new skilled workers in Europe, management consultant firm Kearney said in a recent report. "Defence policy independence in Europe would only be possible if the local share of defence spending were to increase dramatically, which in turn could further exacerbate personnel shortages," Kearney partner Guido Hertel wrote in the report. Rheinmetall -- Europe's largest ammunition maker -- plans to increase its workforce by around 29%, or up to 9,000, by 2028, primarily with product developers, engineers, welders and electronics technicians, it told Reuters. Submarine and frigate-builder Thyssenkrupp Marine Systems is seeking up to 1,500 workers for its shipyard in Wismar, northern Germany. It is scouring trade fairs but says shortages of STEM experts trained in mathematics, IT or sciences are a challenge, a view shared by Leonardo in Italy. "In the past, the fact that we offered secure, quality contracts was enough to guarantee our leadership, but today young people favour other sectors over industry," said the aerospace and defence firm, which is looking to universities and technical schools. Godefroy Jordan, general manager at Headhunting Factory, a Paris-based recruiter, specialises in finding mechanics, systems engineers and technicians for some of France's 4,000 small and medium-sized defence industry suppliers. "The people we're targeting are in jobs where they've never been headhunted, they don't even have a CV," Jordan told Reuters. "When we call them, they think it's a scam." "This isn't a problem of finances; it's a human resources problem because the skills aren't there," he added. AUTO WORKERS IN DEMAND Emrullah Karaca, who has worked at the soon-to-be-closed Gifhorn plant of auto supplier Continental for 25 years, is pondering a switch to Rheinmetall, which operates a factory around 50 km (30 miles) north. But the father of three, who has trained to become a machine operator specialised in plastics technology, was also considering other options without the three-hour commute. "For 25 years I've had the luxury of ... getting to work within five minutes," he said. Auto industry struggles have helped Czech ammunition and shell producer STV Group recruit some of the more than 200 people it aims to add to its Vysoke Myto facility 155 km (96 miles) from Prague by the middle of next year, its chairman, David Hac, said. "With the situation in the automotive industry worsening, we are now, for the first time in a long time, in a situation where we can choose a little among the people." Oliver Doerre, CEO of German sensor and radar maker Hensoldt, told Reuters the company welcomed former auto workers because they are used to just-in-time manufacturing. "That's where we hope to gain expertise to support us on this path towards serial production, towards scaling up production," he said. ($1 = 0.8932 euros)
Reuters
5 days ago
- Business
- Reuters
Help wanted: Europe's defence companies scramble for workers as business booms
VELKA BITES, Czech Republic/FRANKFURT/PARIS, May 27 (Reuters) - Pavel Cechal reckons the Czech company he works for could easily generate more business for its missile and drone engines to double its workforce, if only he could find the staff. His dilemma is shared by many defence companies in Europe, where governments are ramping up spending on ammunition, tanks and other arms in response to U.S. President Donald Trump's warnings that they should not rely so much on Washington. Cechal is vice president of operations at PBS Group, whose production facility in Velka Bites, a two-hour drive from Prague, employs 800 people. He is looking for more. "If they were available on the labour market we would hire most of them immediately. We have the business for it," he told Reuters, adding the firm had raised wages by 8% last year and plans another 10% hike in 2025 to attract talent. "We are now hiring at all levels of the company." While the bloc's 800 billion euro ($896 billion) defence spending push is expected to create hundreds of thousands of jobs over the next decade, the specially trained AI engineers, data scientists, welders and mechanics required are in short supply. Reuters spoke to more than a dozen companies, recruiters and workers who said that along with hiking wages and benefits, arms makers are poaching from other sectors and seeking potential recruits among local pupils and students. PBS Group has taken a step beyond cooperation with schools and universities, Milan Macholan, chief executive of the Velka Bites production facility said: "We also started our own training school where we generate our own employees." Since Russia's 2022 invasion of Ukraine, 78% of EU military procurement spending has gone outside the bloc, with the U.S. alone securing 63%, European Commission data show, partly because Europe's defence sector is fragmented between states. The EU plans to move a big chunk of that procurement to Europe and hopes its new Union of Skills training and hiring strategy will help fill the defence recruitment gap. In Russia, meanwhile, hiring by the well-funded arms sector is causing labour shortages elsewhere. Franco-German company KNDS, which manufactures the CAESAR self-propelled howitzer used in Ukraine, has expanded shifts at the company's main production site in Bourges in central France and is boosting hiring by 50% annually. Recruitment remains a key issue, said Nicolas Chamussy, managing director of KNDS France, adding that there was a limit to how much they could hike salaries. "Don't forget that we're in a war economy, but we're also in an economic war. If our wages increase in an uncontrolled way, we'll be less competitive," he said. AI experts who can develop autonomous weapons systems as well as people with expertise in products made in small volumes are in particular demand, industry participants said. "We're not going to manufacture a CAESAR in the same way as a Peugeot 308. We have to master very, very specific know-how which requires very particular skills. And those are rare on the job market," said KNDS spokesperson Gabriel Massoni. A boost in defence spending to 3% of GDP from the current NATO target of 2% would require as many as 760,000 new skilled workers in Europe, management consultant firm Kearney said in a recent report. "Defence policy independence in Europe would only be possible if the local share of defence spending were to increase dramatically, which in turn could further exacerbate personnel shortages," Kearney partner Guido Hertel wrote in the report. Rheinmetall ( opens new tab -- Europe's largest ammunition maker -- plans to increase its workforce by around 29%, or up to 9,000, by 2028, primarily with product developers, engineers, welders and electronics technicians, it told Reuters. Submarine and frigate-builder Thyssenkrupp ( opens new tab Marine Systems is seeking up to 1,500 workers for its shipyard in Wismar, northern Germany. It is scouring trade fairs but says shortages of STEM experts trained in mathematics, IT or sciences are a challenge, a view shared by Leonardo ( opens new tab in Italy. "In the past, the fact that we offered secure, quality contracts was enough to guarantee our leadership, but today young people favour other sectors over industry," said the aerospace and defence firm, which is looking to universities and technical schools. Godefroy Jordan, general manager at Headhunting Factory, a Paris-based recruiter, specialises in finding mechanics, systems engineers and technicians for some of France's 4,000 small and medium-sized defence industry suppliers. "The people we're targeting are in jobs where they've never been headhunted, they don't even have a CV," Jordan told Reuters. "When we call them, they think it's a scam." "This isn't a problem of finances; it's a human resources problem because the skills aren't there," he added. Emrullah Karaca, who has worked at the soon-to-be-closed Gifhorn plant of auto supplier Continental ( opens new tab for 25 years, is pondering a switch to Rheinmetall, which operates a factory around 50 km (30 miles) north. But the father of three, who has trained to become a machine operator specialised in plastics technology, was also considering other options without the three-hour commute. "For 25 years I've had the luxury of ... getting to work within five minutes," he said. Auto industry struggles have helped Czech ammunition and shell producer STV Group recruit some of the more than 200 people it aims to add to its Vysoke Myto facility 155 km (96 miles) from Prague by the middle of next year, its chairman, David Hac, said. "With the situation in the automotive industry worsening, we are now, for the first time in a long time, in a situation where we can choose a little among the people." Oliver Doerre, CEO of German sensor and radar maker Hensoldt ( opens new tab, told Reuters the company welcomed former auto workers because they are used to just-in-time manufacturing. "That's where we hope to gain expertise to support us on this path towards serial production, towards scaling up production," he said. ($1 = 0.8932 euros)
Globe and Mail
23-05-2025
- Business
- Globe and Mail
RTX vs. L3Harris: Which Aerospace-Defense Stock Offers More Firepower?
Advanced aerospace and defense technologies are becoming an increasingly attractive investment choice, supported by a booming commercial aviation sector and steadily rising global defense budgets amid an intensifying threat landscape. Against this backdrop, companies like RTX Corporation RTX and L3Harris Technologies LHX remain well-positioned to benefit from growing demand for missile defense, cybersecurity, electronic warfare and space systems. Both stocks bring a diversified portfolio to the table. While RTX is a well-known provider of advanced aircraft engines and auxiliary power systems, along with missiles, radars, sensors, hypersonic and space-based systems, LHX's strength lies in tactical communication systems, advanced Intelligence, Surveillance, and Reconnaissance ('ISR') systems, space payloads and propulsion, avionic sensors as well as missile defense systems. Considering both RTX and LHX's well-established position in the aerospace-defense industry, investors seeking exposure to resilient aerospace-defense leaders might ask themselves: Which one is a better bet? Let's delve deeper to get an answer. Financials and Growth Catalysts: How Do RTX and LHX Stack Up? As of March 31, 2025, RTX reported $5.16 billion in cash and cash equivalents, with a long-term debt of $38.24 billion and current debt of $3.06 billion. While its long-term debt remains high, the company's strong short-term liquidity supports ongoing investments in advanced defense technologies and commercial engine upgrades, reinforcing its position in the aerospace-defense sector. In contrast, L3Harris exhibits a weaker solvency profile. As of March 28, 2025, the company held only $0.22 billion in cash against a long-term debt of $10.98 billion and a current debt of $1.28 billion — both figures well above its cash reserves. This limited financial flexibility could hinder L3Harris's ability to fund innovation and growth in the capital-intensive defense market. As far as growth catalysts are concerned, the expanding U.S. defense budget serves as a major growth driver for both companies. In May 2025, the White House proposed a 13% increase in defense spending to $1.01 trillion for fiscal 2026, with a special focus on enhancing U.S. space dominance. This initiative is expected to benefit both RTX and LHX, which have strong positions in space systems. RTX specializes in missile warning technologies, while LHX offers radar systems for space battle management and command and control. Another key growth catalyst is the $175 billion allocated for the Golden Dome — a next-generation missile defense system aimed at countering advanced missile threats. Both companies are well-positioned to secure contracts under this initiative. L3Harris's Hypersonic and Ballistic Tracking Space Sensor ('HBTSS'), launched in February 2024, is currently the only proven on-orbit system for tracking hypersonic missiles. Meanwhile, RTX recently delivered its first AN/TPY-2 radar with Gallium Nitride (GaN) technology, designed to support hypersonic missile defense. These advancements highlight both firms' technical edge and strategic relevance in future defense programs. Beyond defense, RTX benefits from a recovering global commercial aviation sector. In the first quarter of 2025, the company posted 8% year-over-year organic sales growth, driven by strong double-digit gains in commercial aftermarket sales and modest growth in OEM sales. This commercial exposure adds a layer of revenue diversification and resilience. By contrast, LHX recently divested its Commercial Aviation Solutions ('CAS') segment, which used to provide avionics, pilot training, and analytics services for the commercial aviation industry. This strategic move signals LHX's renewed focus on its core defense and national security segments, potentially streamlining its operations. Challenges for RTX & LHX Supply-chain disruptions continue to challenge the aerospace and defense industry, driven by component shortages and macroeconomic factors like inflation and labor shortages. Both RTX and L3Harris rely on complex global supply chains, making them vulnerable to these persistent issues. However, commercial aerospace faces greater exposure compared to defense, which benefits from stable, long-term government funding and priority access to critical materials due to national security. As a result, RTX, with its significant commercial aerospace presence, may be more adversely impacted by ongoing supply-chain challenges than L3Harris, whose defense-focused portfolio provides more resilience. Labor shortages remain a significant challenge for aerospace-defense companies like RTX and L3Harris. According to the 2024 "On the Horizon" Workforce Study by the Aerospace Industries Association ('AIA') and PwC, the industry faces high turnover rates worsened by widespread retirements. Attrition among AIA members has averaged 13% over the past two years, well above the U.S. national average of 3.8%. This elevated attrition risks production delays and quality issues as experienced talent leaves, affecting the operational efficiency of both RTX and L3Harris. How Do Zacks Estimates Compare for RTX & LHX? The Zacks Consensus Estimate for RTX's 2025 sales and earnings per share (EPS) implies an improvement of 4.2% and 5.4%, respectively, from the year-ago quarter's reported figures. RTX's EPS estimates have shown downward movement over the past 60 days. The Zacks Consensus Estimate for L3Harris' 2025 sales implies a year-over-year improvement of 0.9%, while that for earnings suggests a 20.1% decline. The stock's EPS estimates have shown a downward movement over the past 60 days. Stock Price Performance: RTX Vs LHX RTX (up 6.9%) has underperformed LHX (up 19.7%) over the past three months. However, in the past year, RTX has outperformed LHX. While RTX's shares surged 26.2%, LHX gained 7.2%. Image Source: Zacks Investment Research RTX's Valuation More Attractive Than LHX RTX is trading at a forward earnings multiple of 21.22X, below LHX's forward earnings multiple of 21.53X. However, when compared to their respective five-year median, both RTX and LHX's forward earnings multiples look a bit stretched. LHX Less Leveraged Than RTX With the development of advanced defense technologies requiring significant research and development (R&D) investments, defense primes like RTX and LHX often fund such investments through debt. A comparative analysis of their long-term debt-to-capital ratios reflects that RTX is more debt-ridden than LHX. To Keep RTX or LHX? In conclusion, while both RTX and L3Harris Technologies are strong contenders in the aerospace-defense space, RTX may be the more compelling stock that one should retain in their portfolio. Despite its higher debt load, RTX maintains a solid short-term solvency position and benefits from exposure to both the commercial aviation and defense markets, providing it with diversified growth avenues. Its recent strong performance in commercial aftermarket sales enhances its long-term growth prospects. LHX, while more defense-focused and less leveraged, faces constraints from its weaker cash position, which may hinder R&D investments. Moreover, the projected decline in LHX's earnings for 2025 and the divestiture of its commercial aviation unit might limit its growth scope in the near term. Given RTX's broader market reach, better earnings outlook, and slightly more attractive valuation, it edges ahead as the more balanced stock to remain in one's portfolio. Both RTX and LHX carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. L3Harris Technologies Inc (LHX): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis Report
Reuters
23-05-2025
- Business
- Reuters
Putin says he wants boost to Russian arms exports
MOSCOW, May 23 (Reuters) - President Vladimir Putin said on Friday that Russia needs to strengthen its position in the global arms market by increasing exports of weapons. In televised remarks, he also said the country's military complex needs more state support to develop its potential. Since Moscow sent thousands of troops into Ukraine in February 2022, the defence industry has been largely focused on domestic military production to support operations there. It has entailed a massive effort to build new missiles, drones and shells as well as recondition ageing Soviet-era tanks, vehicles and artillery. According to the Stockholm International Peace Research Institute (SIPRI), Russian arms exports dropped to 7.8% of the global market in the 2020-24 period, compared with 21% in the previous four-year period, as a result of international sanctions over the conflict in Ukraine and increased domestic demand for weapons. India, China and Egypt are among the biggest buyers of Russian arms. "The portfolio of orders for Russian military products is now serious. It is tens of billions of dollars. And it is necessary to actively increase the volume of export deliveries," Putin said. He also singled out weapons that utilise Artificial Intelligence (AI). "The future of the global arms market lies with such technology. Strong competition will unfold here, and is already unfolding, for which we must be prepared," Putin said. Western and Ukrainian officials acknowledge the Kremlin has done better than anyone expected when it comes to the battle to produce military equipment, but it has been hindered by increasingly stringent Western sanctions covering a growing number of industrial and other components. Last month, Putin acknowledged that Russia's armed forces remained short of certain weapons, including drones, despite a big increase in output.
