Optimatrix

Is “touchdown space” for entrepreneurs the new “hot desk”?

siteadmin — Fri, 16 Mar 2012 16:55:22 +0000

A growing trend is being seen in many cities in the UK, those start-up organisations that have yet to mature into the requirement of their own offices are now seeing their needs met. Operating in the same way as clubs or airport business lounges, facilities are springing up to meet the needs of this sector, a potential blow for many of the coffee shop chains who have found that the provision of free Wi-Fi has seen their trade increase significantly as it provides an environment where business can be effectively carried out.

The Dutch Ministry of Defence supports its National Defence industry, announcing further investment to enhance NATO air defence capability

siteadmin — Fri, 16 Mar 2012 16:09:01 +0000

Recognising the growing threat from ballistic missiles now held or being acquired by over thirty countries, the Netherlands is to invest up to €250m on the upgrade of four Air Defence Frigates. The upgrade will see the deployment of L Smart radar systems, produced by Thales, giving a detect and track capability of 1000 km. This information would then be passed into the NATO Air Defence network for monitoring and ultimate intercept.

A Dutch Ministry of defence spokesman suggested that as well as enhancing the Dutch contribution to NATO, this investment in a Dutch developed and manufactured technology might also encourage other countries to invest in the same equipment.

This is a clear sign of a Government supporting its domestic industry base.

“Tax Relief for Dragons”

siteadmin — Wed, 30 Nov 2011 16:07:53 +0000

George Osborne announced, in the autumn statement, that for the year 2012/2013 there would be incentives to encourage Angel investors to make more funding available for business start-ups. The Seed Enterprise Investment Scheme (SEIS) will start in April 201s, and will offer an effective capital gains tax holiday if they re-invest gains made during the year into this scheme. Seen by the Federation of Small Businesses as a positive move, they recognise it as providing a welcome alternative to obtaining funding from high street banks. It is also being seen by many as an attractive proposition for the “Dragons”, a proposition not normally associated with the present Chancellor.

1968 “yellow book” procurement rules mean UK taxpayers and not BAES will pay between £60M – £100m in redundancy costs for 3000 employees

siteadmin — Fri, 25 Nov 2011 13:33:00 +0000

A report today shows that BAEs have opened discussions with the government to potentially enact the “yellow book” rules that were designed to protect the UK defence industry and UK jobs. Where there are conditions that mean only one supplier can be used, often found in major defence programmes, the government has a responsibility to compensate on a “reasonable” basis for rationalisation and redundancy costs.

To see the full report please follow the link below.

http://www.defencemanagement.com/news_story.asp?id=18119

Will the consolidation of the Armoured Vehicle manufacturing companies provide greater value for end customers?

siteadmin — Tue, 15 Nov 2011 14:26:09 +0000

_{Following the recent announcement of acquisition of Force Protection by General Dynamics, we now see that Lockheed Martin is in discussions with Nexter and Panhad to introduce “greater collaboration”. However will this bring benefit to the defence customers who currently compete their requirements? Earlier this year the US DOD made its position on consolidation clear maintaining that in these times of budget reductions competition was critical and that consolidation of suppliers would not be looked upon favourably. However as new equipment orders are deferred or reduced we have to ask if the market can sustain the current number of manufacturers?}

£200m potential savings, if recommendations from the Single-Source Military Equipment Contracts report are implemented.

siteadmin — Mon, 31 Oct 2011 15:51:19 +0000

Now that Lord Curries report into single source MOD procurement, commissioned by Peter Luff (Minister for Defence Equipment, Support and Technology) , has been published a public consultation phase has commenced between DE&S and Industry.

The report identifies that improved transparencies in cost build up could present opportunities for large savings in future contracts. Its proposals include:

A more open relationship between the MOD and Defence industry ensuring standardised cost data provided to the MOD.
Industry to be further incentivised to greater efficiency and to reduce its cost base.
SME’s data-reporting requirements to be reduced and Primes will be required for an annual report on SME engagement.

Whilst it is unlikely that there will be a major change in the quantity of single source contracts, which currently account for 40 per cent of all MOD procurement and in-service support of equipment, it is felt that these changes will over time provide up to £200m in savings.

Can SME’s increase UK exports?

siteadmin — Mon, 31 Oct 2011 14:55:24 +0000

Increasing UK exports both supports the reduction of trade deficit and also generates the opportunity for new jobs, thus reducing unemployment, however there is concern that SME’s are being held back due to the lack of support from the UK Government to enable access to re-financing and short term borrowing.

The CBI believes that firms with a turnover of between £10 million and £100 million represented less than 1% of businesses but generated 22% of economic revenue and 16% of all jobs; however it is these very companies that fall outside of areas of special Government focus, unlike our European partners / competitors. John Cridland, the Director General of the CBI has said, “I want the UK to have its own version of the German ’Mittelstand’ – a backbone of medium-sized firms which export, innovate and generate growth,”

The UK is known for its innovation and technology companies many of which are in this exact company sizing. These companies, given access to the required level of financial support could easily compete in a global market, but will they get the chance?

Western export opportunities for defence equipment in the Ukraine

siteadmin — Thu, 13 Oct 2011 15:08:59 +0000

The Ukrainian Navy plans to introduce four new Corvettes into serviceby 2021. However whilst it’s manufacturing base is generally better developed than other CEE members, it is thought that due to the specific lack of advance marine technology up to 80% of the equipment for the vessels, will need to be sourced externally. With an expected budget for the programme of over $2bn, this could provide western defence businesses with some substantial export contracts.

Virgin Atlantic trial new aviation fuel

siteadmin — Wed, 12 Oct 2011 15:07:28 +0000

Bio-Technology firm LanzaTech has developed a new aviation fuel which could reduce, by half, the lifecycle emissions of standard aviation fuels. The fuel is produced using waste gases from steel production, by a method of fermentation and chemical conversion that has been developed by Swedish Biofuels. Virgin Atlantic believe that if successful demonstrations are achieved as planned in the next twelve months, the fuel could be introduced on some long haul routes by 2014. Richard Branson believes that the technology concept is cost comparative with current fuel pricing and that production using gases from the steel industry could produce 15 billion gallons of fuel per annum.

European defence spend on support to grow by $9Bn by 2020.

siteadmin — Mon, 19 Sep 2011 13:59:13 +0000

A report, by the well-respected consultancy firm Frost and Sullivan, highlights the continued trend for European MOD’s to outsource support services to industry as a means of reducing cost’s. As countries seek ways to reduce deficits one route has been to outsource the maintenance and support of military equipment. Whilst this has been a major initiative in the UK for some years, as seen in the Defence Industry Strategy, (DIS), other nations are following suit. France and Spain are seen as the close followers whereas Germany and Italy who have complex infrastructure in place are also moving in this direction.

The current spend in this market is reported as $13.7Bn and it is predicted as being as much as $22Bn by 2020, which should provide much needed opportunities for the major defence Primes who are seeing reductions in spending on new equipment. Such partnering relationships have previously enabled not only the maintenance and support of fleets but also the introduction of life extension programmes and capability enhancements borne from cross platform development.