If it looks like a duck, swims like a duck and quacks like a duck… If it looks like a slowdown in defence budgets in many countries, it must….
So we must begin to see what is happening – a solid slowdown in defence spending.
The trend is felt mainly in the USA and Europe, and less in Asia. All this is not new but the outcome is directly connected to the Israeli aerospace and defence industries.
These will for sure slow down the investment in R&D that is needed for producing new weapons systems.
Instead the companies are offering and will continue to offer upgraded versions. An upgrade costs far less than developing a totally new system.
And the signs are already there. We can see more and more upgrades with the “new generation” or NG designation added to the original name.
Unmanned air systems (UAS), payloads and weapons systems are being offered with the NG attached to the original name.
Sources in the industry say that this trend is here to stay until the situation in the market changes.
This development allows us to stop a minute and think – do armed forces really need to purchase more new systems from the assembly lines, or they can get along with some upgrades that justify the NG addition?
The experts say that in most cases the NG is enough and will get the same operational results.
So when a country has a deep pocket with the word “defence” embroidered on it, such as India, contracts for very advanced systems are being signed all the time.
Other countries have almost empty pockets and they adjust themselves. NG is here and is not going away soon.