In 2016, a global aerospace defence sector is expected to record a huge (up to 3%) increase of income, as indicated in the reports, prepared by the Deloitte Touche Tohmatsu Limited (Deloitte Global) Consumer & Industrial Products Industry group pt. 2016 global aerospace defence sector outlook. These are the good news considering the fact that for the past three years this sector was ranked among declines. In 2013 it constituted 3,2% per year; in 2014 -1,9%; and in 2015 – 0,5%. The greatest role in this respect played the growing threat of conflicts in Europe and the Middle East, as well as an increase of the amount of money, spent on defence budgets. In addition, the increase in military spending also coincided with a revolution of new technology and computer science. Today, the most powerful weapon is precise information and its quick processing, so every army in the world is forced to participate in this race.
Modern technologies enter daily use and change every aspect of human life. To the key sectors one can include cyber – technologies, tools, intelligent and electronic systems and devices, designed to improve the precision of the attack; navigation equipment and control systems, fire control and detection units for the faint radar technology, including electronic camouflage. The acceleration of the terrorist threat has turned previously peaceful urban areas into true battlefields. There have been also invented new ways of attacking, such as hybrid warfare, and for such threats the military sector must also find a solution. Defense budgets of the USA, the UK, France, Japan, some of the Middle East countries are growing with increasing threats to their security.
After 17 years of membership in NATO, the Polish Army has faced a huge transformation; with the army focused mainly on territorial defense, very mobile and equipped with multiple static systems, it has evolved into a modern army in all aspects, starting with the signment of the doctrines on the hardware, and ending with the entire frame. With significant investments into equipment and defense systems, the training and development of human resources, the Polish Army increased operational capabilities, becoming able to participate in a wide range of allied operations. Such a transformation would not be possible without the stabilization of the political-military framework for the development and funding mechanisms of the armed forces. Polish membership in the North Atlantic Alliance opened it a path to stabilization. In many overseas missions, the Polish Army has proven stabilization that is counting the fighting force. Polish troops are trained and equipped with the accordance to the international standards. Implementation of the investment projects in the military sector – is one of the priorities for the Polish government.
The budget is constantly getting bigger every year. In 2015 the Ministry of National Defense of the Republic of Poland boasted PLN 32 billion, and in accordance to the guidelines of Polish Government for 2016 has been increased by more than PLN 3 billion and will reach PLN 35.9 billion – constituting 2 % of Polish GDP. PLN 10.5 billion are planned for capital expenditures, which equals to 29.5 % of defense spending and will ensure implementation of the provisions of the Act of 25 May 2001 on reconstruction, technical modernization, and financing of the Polish Armed Forces; while PLN 898 million 804 thousand were spent on research and development in the field of defense. As a part of capital expenditure, technical modernization of the Polish Armed Forces will consume PLN 9 billion 688 million 195 thousand, of which PLN 5 billion 647,266 thousand will be allocated for the implementation of the multiannual program ‘Priority tasks of technical modernization of the Polish Armed Forces in the operational programs’, aimed at increasing operational capabilities of the Armed Forces as well as increased modern armaments and military equipment.
According to the document ‘Plan for technical modernization of the Armed Forces for the years 2013-2022’, purchases and orders for the Polish army will include 131 new units to combat air targets and 400 rockets. There will be constructed or purchased about 90 new transport, exploratory, and combat helicopters. The transport and training aviation will be replenished with more than 30 aircraft, modern transport and 2 training systems with flight simulators. The Navy will acquire 14 new warships; the land troops will be enriched with some 1,400 of new vehicles, armored infantry, tanks and modules fire. Another interesting purchase is a new system of equipment and armaments for soldiers. It will include thousands of sets of personal equipment, weapon and armor for infantry. It all has to be produced, purchased and put into service by 2022.
Improving Polish defense system would not be possible without the constant expansion and modernization of the that industry. Poland attaches great importance to this issue by as much as possible equipment and technology utilized by the army, came from domestic production. It serves a powerful stimulus for the development of economic, industrial and technical ideas. There are about 200 of state-owned and private companies operating in Poland. In terms of the status of ownership, the backbone of the defense industry recognizes the potential of the Industrial Defence (PPO), which is an important element of state’s economic structures executing the tasks economically – defense. Poland became one of the largest manufacturers of Unmanned Aircraft Systems (UAS), the so-called unmanned drones. We have a large team of aviation experts and engineers, and this enables a constant improvement of intelligence-gathering systems in the Polish Army. We constantly develop and purchase unmanned systems, not only at the tactical level, but also with an operational range. Additionally, for many years we have been developing manned air forces and the Polish fleet of the F-16 fighters is constantly upgraded.
Our high level of training is well recognised in Europe and globally. Thanks to investments in innovative training schemes and very restrictive selection criteria our fighter and helicopter pilots are the world’s elite. Moreover, we manufacture high-class „Black Hawk” helicopters which are globally renowned and distributed to almost every country in the world. Our Navy is stable and equipped with well-developed fleet of minesweepers and missile destroyers, but it still requires financing and modernization, which will be performed. Thanks to a highly-qualified team of engineers and new technologies, we constantly modernize security, rapid response and navigation systems in our units. The Polish shipyards, thanks to cooperation with the Polska Grupa Zbrojeniowa and MON (Ministry of Defence), develop manufacturing of patrol ships that have functions of fighting mines and coastal defense.
The constantly modernized Wheeled Armored Vehicles “Roso¬mak” are doing very well in Land Forces. Since many years Poland has been a leading country in manufacturing of anti-tank weapons. The Polish “Spike” missiles or anti-aircraft “Grom” missiles are popular on international markets. Personal equipment and weaponry of a soldier underwent substantial changes and Polish infantry units are on a high, European level. The Weapons Factory “Łucznik” supplies Polish soldiers with the highest-class handguns and rifles. The Polish Armed Forces also focuses on development of robotisation and constantly develops more accurate weapons with longer range, so that it could use more weapons and less people. Domestic manufacturing is a very important factor in the development of the Polish Army. We established Polska Grupa Zbrojeniowa, PGZ (a group of state enterprises from the arms industry) which closely cooperates with the Ministry of Defence. PGZ comprises of over 60 companies which are specialized in military development. Cooperation with these companies and considerable financial outlays ensure constant and fast development of the Polish Army. The Polish Armament Group comprises of more than 60 companies and a group of these companies is still being developed. It is now one of the largest defense companies in Central Europe that is able to present an offer full of products and services for defense. PZG employs 17,500 of workers in its subordinate entities, and has a turnover of more than 5 billion PLN. We successfully compete in both international and domestic markets.
The key industries in which the PZG Group operates are as follows: reinforcement, shipbuilding, offshore, new technologies and real estate. The most important project, which the Polish Armaments Group has occupied in 2015, is the production of infantry transporters, called Wolverine; started to work on a project generation of 6×6 drive armored personnel carrier; providing a great amount of bullets APFSDS-T for the Leopard tanks. It has also delivered ammunition APFSDS 24000-T and 40000 rounds MP-T for destruction of lightly armored targets; the development of anti-system platform “Poprad” and a radar station “Bystra” (both projects are the latest of its kind in the world); the development of products in thermal technology; finally, the modernization of Leopard tanks. There was also transmitted a research vessel for the use of the University of Gothenburg.
PGZ, therefore, offers a full spectrum of services in terms of production, modernization and renovation of missile systems; production and delivery of ammunition and small arms; production and modernization of armored vehicles, command; communications and electronics equipment of soldiers and weapons; as well as production and modernization of aviation, naval units and real estate. In September 2015, Polish Armaments Group has sought for acquisitions of Naval Shipyard. It is located in the same complex as the Nauta port shipyard. It mainly deals with protection of the Polish Navy and the construction of new units for it. There is also a full technical facility for repairs, maintenance and construction of other units. Despite facing financial problems in recent years, it does not cease to continue operations in building and renovating of various units. Polish Navy shipyards of military naval would soon finish, among others, the construction of the patrol „Silesian” for the Polish Navy. PGZ was invited by the Polish Ministry of Defence for conducting the individual projects, called „Heron” and „Swordfish.” These are the projects, designed to build new and highly modern types of warships for the Polish Navy. It stands up from other projects by its modular design, which enables fast adjustment of parameters of the unit to the requirements of the battlefield. They will also have landing and hangar for the helicopter slip; for the boat landing, and more importantly, would be able to use cameras and unmanned boats. Depending on the version, there will be also two or four driving engines. Their displacement will constitute more than 2645t, with the possibility of future modernization and expansion during exploitation. What is interesting, they will be built in the technology that is invisible radar. The project of corvette „Swordfish” and the patrol „Heron” – are the largest orders ever made for the reinforcement of the Polish Navy.
Polish shipbuilding industry has made a great technological breakthrough, so that now it manufactures products on a global level. The innovative project launched in Polish shipyards in 2014 (tugs hybrid) – is a clear evidence for this. It is the world’s first unit of this type. The tugs operate usually close to shore and ports, utilizing electric motors and internal combustion for the sake of air and water pollution reduction. Worth noting that the units use internal combustion engine only when it is necessary. Hence, most of the time they use the electricity is stored in the batte¬ries. Projects that are built in Poland, based on the latest world standards.
It should also be noted, that the Polish armed forces are also information systems and other IT solutions, Ministry of Defense and the Polish Army; the police and other armed and operational units, which significantly developed the security systems, both internal and external. The flow of information, both through closed and open network, cannot be disturbed. Investments in this sector are among the most important for years. Moreover, one shouldn’t forget that in addition to the transfer of information, the military constitutes also logistics and transport. Military logistics constitutes a part of the defense logistics, and together represents a service, responsible for organization and delivery of sourcing and provision of services to operating bodies and institutions of the armed forces. The primary goal of the logistics security is to maintain high combat capability of troops, for some period of time, in order to reach strategic goals. It targeted to meet the needs of troops in the field of armaments and military equipment; munitions and materials, necessary for training and fighting; maintaining technical efficiency of armaments and military equipment in peacetime; maintaining of a technical efficiency of weapons and military equipment, designed to conduct combat operations. Operations of this type require innovative technologies and solutions, such as a system for monitoring of the transport of cargo, monitoring of field units with the option to remotely intervene and respond. In these respects, strong investment opportunities exist, both in the system and infrastructure.