Industry INSIGHT
Looking beyond the ‘bathtub’ toward 2025 and beyond
by Mr. Mark Signorelli
Editor’s Note: This is the first in an occasional series of viewpoints from industry on how it can work with the Army and DOD to preserve essential capabilities for the warfighter.
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s the defense industry experiences the most challenging environment of the past three decades, we are forced to look to the future. We see the bot- tom of a sizable bathtub directly in front of us. A mere eight years ago, the defense industry was at its peak; today, our combat vehicle industrial base
is at its lowest levels in our production history.
In 2008, during the war surge and at the height of Mine Resistant Ambush Protected (MRAP) vehicle production, our BAE Systems facility in York, PA, was operating at the company’s highest-ever production levels. BAE Systems and the defense industry surged at short notice to meet the challenge of mass-producing MRAPs because the industrial and engineering bases were warm and operating at sustainable levels. Tat peak production was clearly unsustainable, however, and for the past six years, the industrial base has been in a steady decline. (See Figure 1 on Page 150.) Today, the same York facility, which produces the M109A7 and M992A3 vehicles for the Paladin Integrated Management program, as well as upgrades for the M88 fleet and the Bradley Family of Vehicles, is at one-third of the production workload that it had six years ago.
Defense companies have begun shifting their focus to preserving key skill sets for the future, i.e., “sustaining the industrial base.” BAE Systems’ goal, for example, is to ensure that the experts who know how to support, sustain and design combat vehicles are avail- able when the time comes to upgrade vehicles, to integrate future technology on existing
Army AL&T Magazine January–March 2015
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