Canada moves to 2% GDP end of FY25/26 - PMMC

[PuckChaser]

The politics tangent has been deleted.

- Milnet.ca Staff

 

[ytz]

Maybe. There is a long line of customers for their products. I have zero knowledge of their business plans or thoughts on this. I know several other Defense companies who view the CAF as a bad partner due to limited buying and various Canadianization policies. To the point one VP has said with CA GO’s around that the juice isn’t worth the squeeze with Canada.

You definitely haven't had that conversation recently. I have friends at LM over here. And they are looking at expanding in Canada. Particularly in domains where they perceive less competition domestically and high payoff. An LM space division in Canada would have a 50/50 chance on every contract against MDA. For example. The money that is coming in now, has substantially changed conversations. Unless you are actively working on Canadian projects, it's going to take time to see this. But the conversation has absolutely changed.

Honestly, I would be far more worried as a American defence contractor for loss of sales. It's not just Canada. The European and Asian markets will be lost or take large hits. And with that, will be dents to economies of scale that American OEMs usually take for granted. Sure the US is large. But if your total sales go from 3000 to 2000 on an airplane, that still hurts everything from upgrade development to unit sales costs, as the base over which you can amortize shrinks.

 

[ytz]

sounds about right as 1 RCHA will need to start conversion training, likely in the US, and 3 RCHA will need to be stood up to take the guns from 1

Will they all be based together. Or do they plan to put a battery of HIMARS in each region? Curious how this works with the recent reorg.

 

[MilEME09]

Will they all be based together. Or do they plan to put a battery of HIMARS in each region? Curious how this works with the recent reorg.

All in shilo is my understanding

 

[KevinB]

You definitely haven't had that conversation recently. I have friends at LM over here. And they are looking at expanding in Canada. Particularly in domains where they perceive less competition domestically and high payoff. An LM space division in Canada would have a 50/50 chance on every contract against MDA. For example. The money that is coming in now, has substantially changed conversations. Unless you are actively working on Canadian projects, it's going to take time to see this. But the conversation has absolutely changed.

I have zero insight into space.
It was Army green program related.

Honestly, I would be far more worried as a American defence contractor for loss of sales. It's not just Canada. The European and Asian markets will be lost or take large hits.

There is pretty much one reason for that. However it’s a political grenade at this point to place blame where it rightfully lies down here.

And with that, will be dents to economies of scale that American OEMs usually take for granted. Sure the US is large. But if your total sales go from 3000 to 2000 on an airplane, that still hurts everything from upgrade development to unit sales costs, as the base over which you can amortize shrinks.

Agreed 110%. POTUS and some other related people have caused more damage to the economy and specifically the Defense Industrial base in the last 11 months than one would ever think possible.

Programs are in utter upheaval weekly due to hare brained ideas being spewed. Which makes everyone jumpy, but some products are still without peer, and do offer some leverage.

 

[Kirkhill]

"the division’s new HIMARS rocket launchers shot down “enemy” drones."

How the Army’s most tech-forward units are practicing for war

A two-week exercise simulated island battles—and put some 75 new technologies to the test.

www.defenseone.com

Seeing as how HIMARS raised its head here ... my opening sentence in the attached article caught my eye. HIMARS as an Air Defense system.

I don't think they have got around to launching SAMs from HIMARS llaunchers yet.
But
The M30A1 rocket with Alternative Warhead disperses 182,000 tungsten steel balls at ranges of 15 to 92 km.
Might make an impact on a Swarm.
The multi-mode fuze does have a proximity airburst setting, apparently.

Come to that it might have an effect on helicopters and fast movers in flight.