As defence contractors gather at Britain’s Farnborough Airshow this week to capitalise on Europe’s military spending boom, American manufacturers of military goods appear to be shifting focus to produce more weapons on European soil.
European governments are seeking greater control over defence equipment, more local production and a larger share of industrial benefits.
In response, US arms makers are expanding manufacturing in Europe, forming joint ventures and offering more tailored products.
“We hear loud and clear: Europeans want more sovereignty, and they want more localised capability,” said Daniel Tenney, Lockheed Martin’s senior vice president for global business development and strategy.
With NATO’s European members and Canada sharply increasing defence spending, US companies argue it is faster and cheaper to buy proven American systems than develop new ones, while pledging to localise production and technology.
Europeans urge localisation
At Farnborough, Lockheed Martin unveiled a lower-cost Patriot interceptor to be developed with European and US partners.
The announcement follows plans to produce the Army Tactical Missile System (ATACMS) with Germany’s Rheinmetall.
RTX’s Raytheon has also partnered with European firms to expand Stinger missile production, including assembly in the Netherlands.
Countries using systems such as the Patriot benefit from shared investment in capabilities like threat databases, said Thomas Laliberty, president of Raytheon’s land and air defence systems.
“They get a lot of benefit from that collective,” he said.
US defence technology firms are making their presence felt in Europe. California-based Anduril, exhibiting at Farnborough for the first time, has expanded its UK workforce and agreed to establish local production of its Barracuda-500M cruise missile in Poland.
“Each government has a different localisation need,” said Anduril UK General Manager Richard Drake.
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Push for greater autonomy
Many European governments worry the US could become less willing or able to provide weapons, spare parts or other support in the future, particularly if American defence companies are forced to prioritise US military requirements elsewhere.
