Seeking perfect partners in the defence sector

28 August 2023

In the last century the majority of companies in the defence sector designed, developed and manufactured products in-house and in isolation. Today, with both financial and time pressures playing their part, there is an increasing number of dedicated defence companies looking for partners that will add value, reduce overheads and speed up time to market for its products.

This is a step-change for defence manufacturing as companies have to have faith that the new partnerships will not only be financially beneficial but will also provide a secure environment for the development of such sensitive but critical technology.

A decade or so ago, a company working in the defence sector would simply have used a contract manufacturer to build circuit boards for specific items such as radar, vision systems or communications.

Today there is a much closer association within the partnership, with the manufacturer delivering more of the system and collaborating at all stages from design through to build, repair and field servicing. There is also a strong case for using a partner to assist with the refurbishment and up-grading of mid-life products.

Prototyping priorities

One key area of production where moving to the outsourced model is becoming increasingly attractive is that of rapid prototyping and 3D modelling.

The financial outlay required to install these capabilities in-house means that defence design companies are frequently looking elsewhere for this expertise. A partner with these facilities will have a dedicated team in place that is able to swiftly turn around accurate prototypes, reducing the need for constant iterations by the design team.

The key to the success of making the move to an outsourced manufacturing model is to ensure that the values and qualities of the new partner match those of the original equipment manufacturer (OEM).

The partner should be able to demonstrate strength and depth of knowledge in the OEM’s field of expertise. If a company is designing missile guidance systems or thermal imaging solutions it would be sensible to partner with one with similar experience.

It is also essential that as well as having secure systems in place, the partner is able to work to all the many standards that have to be met in the defence sector.

Decision-making

Part of the decision-making process should be how the smooth transition of the manufacturing from one company to the other will be managed. A structured process led by an experienced team will always yield the best results.

To be successful, companies should ensure a repeatable, global and standardised model is in place to ensure benchmarks continue to be achieved and the high standards expected by the OEMs and their customers will be maintained.

A dedicated transition management programme, with a team which works closely with an OEM to remove the pain points can guide them through this process in a straightforward way. This will ensure the move is as smooth and simple as possible. It will also reduce the negative impact on the business over the transition period.

Finding the right fit in both company culture and business profile is vital as manufacturers vary in levels of experience, capacity and ability to understand product complexity.

When contemplating the change from in-house to outsourced, an OEM needs to agree its own needs and then look for a partner that matches those and has a high level of experience in its industry.

By putting the time in at the outset to find the right team, processes and tools, the result will be a long-term, mutually beneficial partnership that enables both sides to focus on individual strengths and ensure the end products meet the highest standards.

About The AuthorDan Lewis is vice-president for the aerospace and defence sector at Plexus