Defense manufacturers suffered a further blow recently as the U.K. became the latest European nation to announce military cutbacks as part of austerity measures.
UK Defense Secretary Philip Hammond said the government planned to axe 20,000 regular army troops and scrap 17 major units by 2020, as part of its ‘Army 2020’ plan.
While the UK cutbacks are targeted at personnel rather than equipment, Alexander von Rosenbach, armed forces editor at research firm IHS Jane’s, said troop cuts would decrease the need for both current and replacement equipment.
“There will be a reduction in equipment currently in service and we expect the army to eventually scrap various pieces of equipment, notably tanks and artillery, in large numbers, as part of its effort to restructure according to the Army 2020 plans,” Rosenbach told CNBC.com . “As a result, future contracts for replacement equipment or modernization work will necessarily be smaller.”
Rosenbach said the 227-millimeter M270 Multiple Launch Rocket Systems, supplied by the US firm Lockheed Martin , will either be redistributed or scrapped under the cutbacks, as they are used only by the 39th Regiment Royal Artillery which will be eliminated under the government’s plans.Page 1 of 3 | Next Page