[iwar] [fc:War.Prompts.Pentagon.Review.Of.Industry.Shows]

From: Fred Cohen (fc@all.net)
Date: 2001-10-15 07:29:48


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Date: Mon, 15 Oct 2001 07:29:48 -0700 (PDT)
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Subject: [iwar] [fc:War.Prompts.Pentagon.Review.Of.Industry.Shows]
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Defense News
October 15-21, 2001
War Prompts Pentagon Review Of Industry Shows
By Gopal Ratnam, Washington
As the war on terrorism heats up, Pentagon officials are reviewing plans to
participate in overseas weapons shows, while major U.S. defense firms plan
to scale back their presence in future exhibitions.
Officials are "conducting case-by-case reviews at a very high level,
including regional commanders in chief," to decide whether the U.S. military
will participate in shows such as the Dubai Air Show 2001, a huge exhibition
scheduled to open in Dubai on Nov. 4, said Defense Security Cooperation
Agency spokesman Dave Desroches.
The Pentagon assessment was underway when the largest U.S. defense show -
the annual meeting of the Association of the United States Army (AUSA)
scheduled for Oct. 15-17 here - was suddenly canceled Monday, Oct. 8. It
attracts 500 exhibitors. 
While the military has yet to cancel its participation in any show, threats
to U.S. equipment and personnel may lead to pullouts, said Desroches, whose
Pentagon agency oversees sales of U.S.-made weapons through its
government-to-government Foreign Military Sales program.
Meanwhile, regional commanders-in-chief may pull some U.S. fighter aircraft
and support equipment scheduled for exhibit to use in the ongoing operations
in Afghanistan, Desroches said. 
And several major U.S companies are scaling back participation in major
international air and land weapons shows following U.S. strikes on terrorist
targets in Afghanistan. "Boeing is scaling back our participation in most
shows" by about 30 percent, said company spokeswoman Mary Ann Brett in St.
Louis, Mo.
Company officials cited worries about executives' security, among other
reasons.
Major upcoming international defense shows include:
*The Langkawi International Maritime and Aerospace (Lima 2001) exhibition in
Langkawi, Malaysia, Oct. 9-14.
*The Seoul Air Show 2001, Seoul Airport in Seongnam, Gyeonggi Province,
South Korea, Oct. 15-21.
*The Dubai Air Show 2001, at Dubai, United Arab Emirates, Nov. 4-8.
*The Asian Aerospace 2002, at Singapore, Feb. 26-March 3, 2002.
An aerospace industry spokes-man said defense firms and the Pentagon are
trying to strike a balance between security and business interests.
Completely pulling out of international exhibitions would be seen as a sign
of dwindling U.S. interest in pursuing ongoing deals, said Joel Johnson,
vice president for international affairs at the Aerospace Industries
Association, here. 
Regional commanders would like all their assets close at hand, but "at the
same time we don't want to send a message to customers that we don't care,"
Johnson said.
Both Malaysia and Korea are considering buying U.S.-made fighter aircraft.
"We don't want [a lack of participation] to be interpreted as a slight,"
Johnson said. 
If you want to win a contract in Chile, said an industry analyst, "you have
to be there in shows."
"Being there is a way of showing support for the local economy," said
Richard Aboulafia, analyst at Teal Group, a defense consulting firm in
Fairfax, Va. 
A host government's involvement in a show often determines its importance to
defense firms, Aboulafia said.
Still, few believe these pullouts will affect sales for major firms.
The only major impact on U.S. companies would be if European and Russian
defense firms get all the attention because of the lack of U.S. equipment on
display at the exhibitions, Johnson said.
"We don't book sales at these shows; that's not what they are about for us,"
said one senior U.S. defense industry executive here. "We are there because
our customers are there and we support them and also unveil new
technologies." The cancellation of two of the premier arms shows in the
United States has dented the plans of several U.S. defense firms that count
the meetings as highlights of their annual marketing plans. 
The AUSA show was abruptly cancelled due to the ongoing military operations
in Afghanistan and "the imperative that there be no distraction to the Army
leaders" during the operation, AUSA president retired Army Gen. Gordon
Sullivan said in a statement.
The Air Force Association show, set for Sept.16-19, here, was also canceled
in the aftermath of the Sept. 11 attacks on New York and Washington.
Companies that planned to announce new products or technologies during the
AUSA meeting are now making other plans.
"We had intended to unveil our revolutionary Propulse electric drive system
during the show," said Kirsten Skyba, spokeswoman for Oshkosh Truck Corp.,
Oshkosh, Wis. 
The company was now seeking other venues and opportunities to present the
new product to its potential customers, Skyba said. Propulse is a hybrid
electric drive system that will be incorporated on new trucks that will
increase fuel economy and cut emissions, Skyba added.
To make up for the lost marketing opportunities, company executives will
have to travel more within the United States and to other parts of the
world, "if you want to continue talking to both domestic and international
customers," said Peter Keating, spokesman for General Dynamics Land Systems,
a unit of General Dynamics Corp., Falls Church, Va.
The AUSA meeting "is one of the premier shows in our marketing plans for the
year," Keating said. It is an "excellent show to attend...it draws a strong
number of representatives from foreign military delegations and business
people."
Despite the cancellation of AUSA 2001, organizers said other large U.S.
exhbitions and conventions scheduled through the end of the year are likely
to go ahead as planned.
TechNet Asia-Pacific 2001 will still be held Nov.6-8, in Honolulu, said A.J.
Guenther, spokes-man for the Association for Communications, Electronics,
Intelligence, Information Systems Professionals (AFCEA). AFCEA is a
non-profit group of professionals drawn from the electronics and
communications industry.
The Interservice/Industry Training, Simulation and Education Conference
(I/ITSEC) to be held Nov. 26-29, in Orlando, Fla., is slated to go ahead,
said Debbie Berry, the conference chairman. The conference brings together
participants drawn from the U.S. armed services, industry and academia for
training and education.

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