Fuzing Industrial Base
and
Market Overview
Industrial Committee of Ammunition Producers
February 12, 2002
Agenda
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Fuze Industrial Base Members
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Market and Customer Characteristics
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Fuze Base Member Profiles and Programs
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Issues
Defense Industry
Fuzing Industry Consolidation (1992 – 2001)
•Bendix
•Kodak
•Raytheon
•Motorola
•Ramtec
•Sooner
•Texas Instruments
•Fairchild
•Micronics
•Hamilton
•Pocal
•Accudyne
•Loral
•Piqua
•Quantic
•ISC
•Action Manufacturing
•BEI
•EMCO
•Allied Signal
•Alliant Precision Fuze
•Magnavox
Company, LLC
•Waltham Watch
•Raymond
•Rixon
Engineering
•Bowman
•Dayron
•Westclock
•Bulova Technologies
•GE
•EDI/ L3
•General Time
•Primex
•AAI
•Amtech
•Aerosonics
•KDI Precision
•Lockheed Electronics
Products, Inc
Action Manufacturing
Alliant Precision Fuze
Company, LLC
Dayron
Kaman Aerospace /
Raymond Engineering
L-3 / BT Fuze Products
L-3 / EDI
L-3 / KDI Precision
Products
Martin Electronics
Market Characteristics
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Buyers Divided Between U.S. Department of
Defense and Major Weapon System Primes
Addressable U.S. Fuze Market is $200M - $250M
per Year
Foreign Sales (Direct) Difficult Due to:
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Low Cost, Low Performance Indigenous Competition
“Fortress Europe” Mentality for Major Weapon Systems
FMS Complications
U.S. Department of State Export Restrictions
Fuzing Supplier Characteristics
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Combination of Private and Public Companies
Range of Fuzing Revenues From $6M - $75M
Fuzing May or May Not Be Dominant Business
Area (Revenue)
Weapon Prime Contractors All Have Some Fuzing
Capabilities (Not Addressed)
Several Single Product Suppliers Exist (Not
Addressed)
Company Profiles
Action Manufacturing Company
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Charter:
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History
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Manufacturer of electromechanical rocket, artillery and
mortar fuzes for U.S. Army &
Navy, domestic prime contractors
and the State Department
approved foreign customers
Manufacturer of electromechanical rocket, artillery and
mortar fuzes for U.S. Army &
Navy, domestic prime contractors
and the State Department
approved foreign customers
Today
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Privately owned, small business
with 215 employees
Two Divisions - Fuzes in
Philadelphia and Explosive /
Pyrotechnics in Atglen, PA
CY 2001 Fuzing Revenue - $13M
ACTION FUZE & SAFE/ARMING DEVICES
AND PYROTECHNICS
MFG. CO.
MK259 Smaw Fuze
MK420 Smaw Fuze
M509 A2
M530 A1
Tank Ammunition
BBU-36/B
CCU-44/B
M796
Chaff Flare & Bomb Rack
Shoulder Launched Weapons
40mm
Practice
RAAM
Volcano
M557 Fuze
M572 Fuze
M739A1 Fuze
MK407 Fuze
Anti-Tank Systems
Artillery & Naval Guns
M935 Fuze
M567 Fuze
M778 Fuze
Mortars
2.75 Inch Rocket System
M423 S & A
M423 Fuze
M439 Rocket Fuze
M230 Grenade Fuze
M231 Practice Fuze
M48
M55
M69
M84
M100
Piston Actuator
Detonators & Actuators
ATK Precision Fuze Company
Company Overview
 3 Locations
 Headquarters & Production in Janesville, WI
 Research & Development Center in Plymouth, MN
 Power Source Development & Production in Horsham, PA
 Approx. 200,000 Square feet of floor-space
 Approx. 400 employees
 ~ $65M in fuzing sales
 Extensive Development, Laboratory, Testing & Production facilities
 ISO 9001 Certified
ATK Precision Fuze Co
Customers/Programs
Customer
Air Force
Program
Hard Target Smart Fuze
DSU-33 Proximity Sensor
Multi-Event Hard Target Fuze
Navy
Multi-Function Fuze
Advanced Swimmer Delivery System Power Source
Army
Electronic Time Fuze for Mortars
Programmable Inductive Artillery Fuze Setter
S&A for M734A1 (Supplier to L-3/KDI)
MOFA Battery (Supplier to L-3/KDI)
M767/762 Battery (Supplier to L-3/Bulova)
Selectable Light Attack Munition
Primes
BAT ESAD
Programmable Integrated Ordnance Suite
Tactical Munition Dispenser Fuze
FZU-39 Proximity Sensor
Crusader Fuze Setter
International
FMU-139
XM780
Dayron Overview
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Location - Orlando, Florida
Size - 90,000 Square Feet
Employees - 150
Fuzing Related Sales in 2001
– Approximately $18 Million
Dayron’s Principal Customers / Products
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U.S. Army
– M549 - 40mm Grenade Fuze
– M549A1 - 40mm Grenade Fuze
– M550 - 40 mm Grenade Fuze
U.S. Air Force & Navy
– FMU-143 - Penetrator Bomb Fuze
– FMU-152 - Joint Programmable Fuze
– FMU-156 - Warhead Fuze for JASSM Cruise Missile
Raymond Engineering
Operations
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Company Overview
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Location: Middletown, CT
Square footage: approx. 200,000
Employees: approx. 200
Fuzing sales: $20-30 million range
Raymond Engineering
Operations
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Customers/Products – Ultimate Customer
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AMRAAM – Air Force/Other
Harpoon – Navy
Standard Missile – Navy
Brimstone – Other
Maverick – Other
SLAM-ER – Navy
Hydrostatic – Navy
Penguin – Other
Tomahawk - Navy
BT Fuze Products
Company Overview
Ownership: Division of L-3 Communications Corp., Formerly
Hamilton Technology/Bulova
Location:
Lancaster, PA
Plant:
135,000 sq. ft. mfg.; 10,000 sq. ft. warehousing
Employees: 250
Fuze Related Sales (2001): $50M
BTFP Customers
And Annual Revenue
U.S. Army:
$28M
U.S. Air Force:
$1M
U.S. Navy/Marines:
$5M
Other (foreign/systems primes):
$16M
L-3 Communications
Electrodynamics (EDI)
• Location: Rolling Meadows, IL (suburban Chicago)
• Facility: 50,000 square feet
• Employees: 206
• Fuzing Sales 2001: Approximately $6M
Customers
Customer
Programs
Prime Contractors
U.S. Army
Blast Fragmentation Warhead
Lockheed Martin
Hellfire / Longbow
Lockheed Martin
Mongoose Minefield Clearing System
BAE Systems
Blast Fragmentation Warhead
Lockheed Martin
Hellfire U.K. Apache
Thales Air Defense
Hellfire / Longbow Foreign
Lockheed Martin
VT-1 Surface to Air Missile
Thales Air Defense
U.S. Navy
U.S. Air Force
Other
L-3 Communications
KDI Precision Products
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Location:
Facilities:
Employees:
CY 2001 Fuzing Sales:
Cincinnati, Ohio
236,000 Sq. Feet
265
$75M
L-3 Communications
KDI Precision Products
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Customers / Products
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U.S. Army
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U.S. Navy
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M734A1 Multi-option Fuze, Mortar
M782 Multi-option Fuze, Artillery
M783 Mortar Point Detonating Fuze
FMU-160 High Fragmentation Proximity Fuze (C-130 Gunship)
XM982 Excalibur S&A and Proximity Fuze (Raytheon)
Guided MLRS ESAD (Lockheed Martin)
PAC-3 ESAD (Lockheed Martin)
MLRS - ER S&A (Lockheed Martin)
Patriot S&A (Raytheon)
ATACMS ESAD (Lockheed Martin)
M114 S&A - TOW (Raytheon)
M234/M235 DPICM Self Destruct Fuze Production Automation
AIM-9X Sidewinder ESAD (Raytheon)
Evolved Sea Sparrow Missile ESAD (Raytheon)
Joint Stand-off Weapon (JSOW) ESAD (Raytheon)
Extended Range Guided Projectile (ERGM) S&A
Mk 417 RF Proximity Fuze (5” Gunfire Projectile)
Foreign
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FMU-139 Air Dropped Bomb Fuze
HARPS Bomb Proximity Fuze
LOCATION: MEI’s facility is located
approximately fifty (50) miles southeast of
Tallahassee, Florida near the town of Perry.
EMPLOYEES: Year 2001
average workforce consisted
of 235 employees.
FACILITY INFORMATION: MEI’s facility includes
1,040 acres and over 171,000 ft2 of improved buildings
including 92,400 ft2 of manufacturing space, 41,000 ft2 of
storage, and 37,600 ft2 space for engineering and
administration support.
FUZE RELATED SALES: Year 2001
fuze related sales to HQ OSC (M228,
M213 & M201A1) were approximately
$9.0 M.
Fuzing Issues
Fuzing Concerns
 Requirement for consolidation/coordination
 Some taken place, more required
 Support Industrial base through split procurements
 Movement to Total Systems Program Responsibility
 Means buying fuzes through Primes
 High risk for control of performance/safety and configuration
 Velocity of Fuze Base IPT
 Initiatives well intended, but operating slower than market pace
 Investment in Technology
 Have coordinated, open exchange of roadmaps
 Explore using Air Force model
Issues
• Many, if not all, in the “Fuze Industrial Base” depend
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heavily on profit from Foreign Sales to finance Capital
Investments and provide the “staying power” to be viable
members of a ready base. Government competition with
industry for the FMS business is counter productive to
strengthening the base.
The Army must continue to improve its use of “Best Value”
contracting as a means of preserving the industrial base
and its critical technical know-how.
Raymond Engineering
Operations
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Issues
– Business volume and methods of procurement are
not attractive for business
• New fuze business many times requires suppliers to
take enormous risks
– Lack of R&D investment by U.S. Government to
Fuze suppliers
– Difficult to attract and maintain engineering skills
– Prime contractors doing more fuze work
BT Fuze Products Issues
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Not enough money to replenish aging stockpile
Support for North american Base only to restrict procurement in a
declining market
Sustaining a technology core in a declining market
New markets (smart weapons) controlled by large weapons
primes
– Self facilitization required
– Not directed by MILDEPS to solicit a “restricted base”
No government funding for specialized capital equipment
Foreign competition, sometimes using U.S. technology
Lack of Army Customer appreciation of constricdting and
consolidating industry base
Multiple arsenal managers of government fuze programs
Heavy arsenal tax on production appropriations
Insufficient funding to sustain R&D engineering base
EDI Fuze Industry Issues
• New technologies utilized in fuze programs have limited
application outside of fuze industry.
• Difficult for suppliers to justify IR&D investment in new
technologies to advance the state of the art.
• Limited number of production programs will continue to
lead to fewer viable suppliers who can commit to
required levels of support and technical expertise.
• Need for levels of NRE funding which make
development of new technology financially viable and
attractive to capable potential suppliers.
KDI Precision Products
• Issues
– Stop Government from Competing with Industry on Fuze
Development Programs
• Define Requirements
• Approve Safety
• Pursue Far Horizon Technology
– Award True Multi-year Production Contracts
– Don’t Reduce the Rewards for Competitive Performance by
Splitting (Rare) Production Contracts
– Pool DOD wide Fuzing S&T Money Where Common Fuzing
Solutions Are Possible
– Encourage “Build to Spec” Procurements
Key Fuze Related Issues in 2002
KEY ISSUES:
• Lack of domestic suppliers for critical components
• Weak customer support for true IPT commitment
Munitions Industrial Base Task Force
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Issue
– Lack of Funding for Fuze RDT&E
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Impact
– Available Technology is not Applied to
Weapons Systems
– Weapon Functionality Less Than Could be
Realized