Tag Archives: Raytheon Company

Smart and Sensitive: the Power Grid

Raytheon Company  and Utilidata have formed a strategic alliance to help power utilities proactively detect, defend against and respond to cyber threats.  The effort will combine Utilidata’s experience in the use of real-time data from the electrical grid to detect and respond to cyber attacks and Raytheon’s expertise in proactive cyber threat hunting, automation and managed security services to provide world-class cybersecurity, analytics and other innovative technologies….

[According to] Scott DePasquale, chairman and CEO of Utilidata. “With more and more devices and systems connected to the internet, and all of them needing electrical power, these challenges are increasing exponentially. This new alliance will help define the future of cybersecurity in the power utilities sector.”  In December 2015, a cyber attack shut down a large section of the Ukrainian power grid – an incident that the Department of Energy identified in the 2017 installment of the Quadrennial Energy Review as an ‘indicator of what is possible.’

Excerpts from  Raytheon, Utilidata to deliver defense-grade cybersecurity for utilities, PRNewswire, Feb. 8, 2017

The Rocket Greed

Promotional Picture of MBDA Sea Ceptor. image from wikipedia

Missiles excite, for unlike other weapons, demand for them is growing strongly. Global defence spending grew by just 1% in 2015—after five years of severe budget cuts in many countries—but the global market for missiles and missile-defence systems is racing ahead at around 5% a year. The capabilities of such weapons are increasing, and with that their price and profitability. Missiles are no longer just flying bombs; they now often contain more computer than explosive to help find their target autonomously…

Executives [of weapon companies] are putting missiles at the forefront of their efforts to expand abroad and to reduce their reliance on home governments.… The most go-ahead so far has been MBDA, a European joint venture, which last year won more missile orders outside Europe than within its home continent. Others are now catching up on foreign sales. Raytheon hopes soon to sign a $5.6 billion deal with Poland to upgrade its Patriot missile-defence shield, while Lockheed and MBDA plan to ink a deal with Germany for their air-defence systems.

[M]issile divisions at Western firms are facing more competition from Chinese, Israeli and Russian firms in some export markets….

Excerpts from Defence Firms: Rocketing Around the World, Economist, July 16, 2016, at 56

No Target too Cheap to Kill: cost per kill of drones armed with cheap weapons

Guided missiles are ludicrously expensive. A Tomahawk cruise missile costs about $1.5m, and even the Hellfire, an air-to-ground rocket that weighs a mere 50kg, is $115,000 a pop. In exchange for, say, an enemy tank, that is probably a fair price to pay. To knock out a pick-up truck crewed by a few lightly armed guerrillas, however, it seems a little expensive, and using its shoulder-fired cousin the Javelin ($147,000) to kill individual soldiers in foxholes, as is often the case in Afghanistan, is positively profligate. Clearly, something has to change. And changing it is.

An early sign of this change came in March 2012, with the deployment in Afghanistan of the APKWS II (Advanced Precision Kill Weapons System) made by BAE Systems and Northrop Grumman. The APKWS II is a smart version of the old-fashioned 70mm (2.75-inch) rocket, which has been used by America’s armed forces since 1948. It is also cheap, as guided missiles go, costing $18,000 a shot.  The APKWS II is loaded and fired in the same way (pictured above) as its unguided predecessors, from the same 19-round pods, making its use straightforward. The difference is that it can strike with an accuracy of one metre because it has been fitted with a laser-seeking head which follows a beam pointed at the target by the missile’s operators. This controls a set of fins that can steer the missile to its destination.  Standard practice with unguided 70mm missiles is to use as many as two pods’ worth (ie, 38 rockets, at $1,000 a round) to blanket a target. That means the APKWS II comes in at less than half the cost per kill. It also means that many more targets can be attacked on a single mission.

BAE and Northrop are merely the first to market with this sort of device. ATK, Lockheed Martin and Raytheon are all close behind. Meanwhile, the American navy has been working on its own cheap guided missile, the Low-Cost Imaging Terminal Seeker (LCITS), which it tested successfully last year.  The LCITS is another upgraded 70mm weapon, but instead of laser guidance it picks out its targets by their heat signature. Because the operators do not need to keep pointing a laser at the target, they can fire several missiles in quick succession—a useful feature if a ship is being attacked by a swarm of boats.

Smaller precision weapons are useful, too, in circumstances where weight is a crucial factor. Shadow, a drone used by the American, Australian and Swedish armies, is too light to be able to carry Hellfires and is thus, at the moment, restricted to reconnaissance duties. But not for much longer. Shadows are now being armed with a small, still-classified guided missile. This follows the earlier success of arming Hunter drones with Viper Strike, a laser-guided glide bomb weighing 20kg originally developed by Northrop Grumman as an anti-tank weapon and now owned by MBDA. Viper Strike, along with Raytheon’s Griffin, a similar weapon, also arms the marines’ Harvest Hawk, an aerial gunship based on the Hercules transport aircraft. Viper Strike means these aircraft are capable of hitting a large number of targets with great precision from a distance of several kilometres.

The most determined effort to develop a small, cheap guided weapon, though, is the Forward Firing Miniature Munition (F2M2, or Spike missile), from the Naval Air Weapons Station in China Lake, California. Steve Felix, the F2M2’s project manager, wanted to make such a weapon for just $5,000, using off-the-shelf components. The result, which weighs less than 3kg and is the size of a baguette, is claimed to be the world’s smallest.  Spike has been tested successfully as a shoulder-launched missile, and also fired from drones. It has an ingenious optical-guidance system—a camera that can either lock on to an operator-designated object or can pick up a laser spot and home in on it. It has a range of 1,500 metres and, though the warhead is too small to damage a tank, it can destroy cars and other light targets far more cheaply than the alternatives.

Precision weapons have already changed warfare radically, even though they have sometimes raised the price of battle. Low-cost guided missiles, often carried on small drones rather than expensive piloted aircraft, will change it further still. When such missiles cost a thousand dollars rather than a million, no target will be too cheap to engage.

Excerpts, Cheap smart weapons: Rockets galore, Economist, Sept. 29, 2012, at 85

The Military-Industrial Complex: aerospace and defense industry

The U.S. is the world’s largest aerospace and defense market, and also home to the world’s largest military budget. The growth of the Aerospace and Defense industry depends largely on the spending outlook of government departments, with the U.S. defense budget being the primary driver. The industry largely depends on U.S. government contracts….

Defense spending is the major source of revenue for the top nine global aerospace and defense companies, with the US accounting for more than 40% of total global defense spending. However, with the U.S. government expected to institute greater austerity in its defense budget going forward, defense companies will need to source more orders from global clients. The geostrategic significance of the industry and the related heavy export restrictions will come in the way, to some extent, of those marketing efforts by U.S.-based operators.

The U.S. defense budget for 2012 was $645.7 billion, with the base budget at $530.6 billion and $115.1 billion approved for Overseas Contingency Operations (“OCO”) as supplementary defense spending, mainly to fund ongoing wars.  In February this year (2012), the Department of Defense (DoD) requested a Pentagon base budget of $525.4 billion for 2013, which is approximately $5.1 billion or 1% less than what is approved for fiscal 2012, with $88.5 billion earmarked for OCO spending. The significant reduction in OCO funding is mainly due to the decline of U.S. military operations in Iraq in 2011. Going forward, OCO funding is expected to continue to decline as troops redeploy out of Afghanistan.  Since the September 2001 attacks, the U.S. government has spent significant amounts on military campaigns overseas. The country has already decided to gradually move out of Afghanistan, and the war in Iraq has finally ended, which is expected to lower its expenditure on foreign campaigns. However, its clandestine military operations in other nations as part of anti-terrorism operations will continue to add to foreign war expenses. However, the overall trend in overseas military spending is unmistakably on the downtrend.

The big defense operators armed with a strong balance sheets are expanding their operations inorganically through acquisitions. The U.S. Defense department also endorses mergers among U.S. defense companies, provided they don’t involve the top five or six suppliers acquiring each other.

Lockheed Martin Corporation bolstered its product portfolio by acquiring Procerus Technologies, a company specializing in autopilot and other avionics for micro unmanned aerial systems. In November 2011, it had acquired Sim-Industries B.V., a commercial aviation simulation company located in the Netherlands. This acquisition would expand both companies’ closely related markets and expand the customer base.

Another defense major, L-3 Communications Holdings Inc., acquired the Kollmorgen Electro-Optical (“KEO”) unit of of Danaher Corporation This unit will improve L-3’s product suite with products like submarine photonics systems and periscopes, ship fire control systems, visual landing aids, ground electro-optical and sensor-cueing systems.

In December 2011, General Dynamics Corporation completed the acquisition of Force Protection, Inc. The latter provides blast- and ballistic-protected platforms that support the armed forces of the U.S. and its allies.

In December 2011, Raytheon Company announced that it has acquired Pikewerks Corporation, a privately held company, to further extend Raytheon’s capabilities to defend against sophisticated cyber-security threats facing customers in the intelligence community, the DoD and commercial organizations.=

Excerpts, Zacks Industry Outlook Highlights: Lockheed Martin, L-3 Communications, Danaher, General Dynamics and Raytheon, PRNewswire, May 15, 2012