|
Server : Apache/2.4.62 System : FreeBSD fbsdweb2.web.rcn.net 14.1-RELEASE FreeBSD 14.1-RELEASE releng/14.1-n267679-10e31f0946d8 GENERIC amd64 User : www ( 80) PHP Version : 8.3.8 Disable Function : NONE Directory : /domains/roger.dnai/98Book/ |
Upload File : |
<!DOCTYPE HTML PUBLIC "-//SoftQuad//DTD HoTMetaL PRO 4.0::19971010::extensions to HTML 4.0//EN"
"hmpro4.dtd">
<HTML>
<HEAD>
<TITLE>Boeing Mil. Aircraft & Syst. President Micheal Sear's Speech to 1998 NATO Workshop, Vienna</TITLE>
</HEAD>
<BODY LINK="0000ff" BGPROPERTIES="FIXED" BGCOLOR="ffffff"><BASEFONT SIZE="3">
<P ALIGN="CENTER"><FONT COLOR="000000" SIZE="6" FACE="Palatino">Economic
Implications of European Security:<BR>
a Perspective from the Boeing Company </FONT></P>
<P ALIGN="CENTER"><FONT COLOR="000000" SIZE="4" FACE="Palatino">Mr.
Michael M. Sears<A HREF="0_FN0.htm"><SUP></SUP></A>, President</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="000000" SIZE="4" FACE="Palatino">Military
Aircraft and Systems, The Boeing Company</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>SHARING
COMMON VALUES</B></FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">NATO, the
most successful alliance the world has ever seen, has lasted longer than
any other alliance in this century. And we in America value it.
We also value forums like the Workshop that help to build a better
understanding of key issues and foster the kind of cooperation so
essential in <I>successfully</I> meeting NATO’s enduring challenges.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Alliances
that endure do so because the partners have shared cultural values. NATO
partners believe in freedom, both political and economic, and in security.
When called upon, they are ready to defend these beliefs. Our
Alliance shares a common approach to military affairs and shares the same
values in the way we do business. </FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">But sharing
goes both ways. That’s why, as a leading member of the
international defense community, we at Boeing believe that <I>understanding
and cooperation </I>have now become essential to industry’s ability
to deliver high-quality, low-cost systems to our NATO forces. We
must understand our military customers’ requirements and cooperate
with local industry. Cooperation in the form of expanded industrial
partnerships, we believe, is where true economic opportunities exist for
NATO partners. </FONT> </P>
<P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>BOEING
AND THE DEFENSE ACQUISITION PROCESS</B></FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">When it
comes to the defense acquisition process, we at Boeing believe we have
several responsibilities: </FONT></P>
<UL>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">First, to really <I>understand</I>
the objectives and requirements of our military customers—not to
tell them what they should have, but to listen to what they want and
need; </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Second, to turn loose
our technological creativity; </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Third, to make the
necessary investments in plants, equipment, and people; </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Fourth, to lead or
participate in the best industrial team for each program; </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">And fifth, to be
relentless in our commitment to better quality and lower costs. </FONT></LI>
</UL>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">That’s
what we’re in business to do. And therein lies one of the most
important economic implications for European security. </FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">When we look
to carry out those responsibilities in the NATO marketplace, we understand
that we cannot be effective in Europe unless we work at it day in and day
out, on the ground, full time—not simply as a provider from afar, but
also working with European governments, and as a partner with European
industry. We must become part of the fabric of life in the
communities and countries in which we intend to do business. Our
Chief Executive Officer, Philip Condit, has said publicly on more than one
occasion that Boeing must go further than it has ever gone before in
expanding its international presence. And we must work vigorously to
enlist cooperation and participation in the design, development, and
production of new generations of aerospace products. </FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Plain and
simple, we are committed to significantly expanding our participation in
customer markets. In fact, the process has already begun:</FONT></P>
<UL>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Boeing Company is an
important export customer for many European countries. In the UK,
for example, Boeing buys more aerospace exports than any single nation.
In 1997, we bought 1.5 billion pounds’ worth of UK aerospace
products, supporting over 70,000 UK jobs and more than 225 separate UK
companies. </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Our partnership with
the Czech Republic aircraft manufacturer Aero Vodochody is a signature
example of the way we intend to participate globally. Through this
partnership, we’re working hard to better understand the Czech
Republic and its military and civilian markets. We’ve
identified a partner capable of designing and producing high-quality,
low-cost aerospace products that will help us compete more effectively
around the world. Right now we are in the process of transferring
25 to 30 Boeing executives and technicians to work in this Czech
aerospace company—day in, day out. </FONT></LI>
</UL>
<P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>DEVELOPING
GLOBAL PARTNERSHIPS</B></FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Establishing
our presence among our European customers to better understand their
expectations and requirements is one of the economic implications of
European security. But it is only part of the answer. The
products we in the aerospace industry provide NATO must be of the highest
quality possible, at a price member-countries can afford. To do
that, we in the industry must develop a network of global partnerships.
And that statement leads me to one key truth: None of us can
provide for the security of NATO alone. No one country, no single
industrial enterprise, has all the know-how, all the resources, and all
the answers. Whether it’s aircraft, missiles, or any other
defense system, it is an industrial <I>team</I> that is out there
developing and producing equipment that will do things never done before,
at levels of reliability and accuracy never achieved before, and with cost
pressures beyond any we have experienced before. </FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">It is tough
and demanding work—on the technical <I>and</I> the management sides
of the equation. And to be done right, this work requires the best
of NATO’s industrial base. None of us has a monopoly on
leading-edge technology or brilliant scientists. That is not to say
that competition is somehow going to go away. Competition will
remain strong and tough, as it should. It will continue to make all
of us in the industry better, urging us to find ways to advance
technology, lower costs, improve program performance—and to deliver
all that to our armed forces. </FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">My main
message is simple: Strong transatlantic industrial partnerships
generate economic and technological benefits for all of us. These
partnerships: </FONT></P>
<UL>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Provide direct work on
aerospace products; </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Advance the
technological development of member-nations; and </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Strengthen economies.
</FONT></LI>
</UL>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">And we all
know that strong economies contribute immeasurably to the security of the
Alliance and generate resources to focus on other important needs. </FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">We at
Boeing, and many of you in this audience , have seen it work. We
have a history of developing successful partnerships with European
industry, partnerships that have developed and produced some of NATO’s
best peacekeeping equipment. These partnerships have also brought
economic benefits to both sides of the Atlantic. For example,
McDonnell Douglas, now the new Boeing Company, has been a close partner of
British Aerospace for many years—each of us builds half of the T-45
trainer and half of the Harrier. These two programs are excellent
examples of European involvement in products used by American defense
forces. In the future, programs such as the Joint Strike Fighter
will offer true growth opportunities for continued industrial and military
cooperation of this kind. </FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">There are a
number of other successful industrial/military partnerships: </FONT></P>
<UL>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">The partnership of
CASA, Alenia, BAe, and Boeing developed a radar-equipped Harrier—the
Harrier II Plus, which is in service in Italy, Spain, and the United
States. </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">GKN Westland in the UK
is building 67 Apache helicopters. Boeing in Mesa, Arizona,
produces Apache kits, powered by Rolls Royce engines, and nacelles and
horizontal stabilizers are built by Shorts in Northern Ireland. Assembly
is in Britain. Westland is the prime contractor; Boeing is the sub
contractor. This is a partnership all the way around. </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Then there’s the
Harpoon. Many of us here know that the Harpoon anti-ship missile
system is the result of a leading long-term international development
and production collaboration. </FONT></LI>
</UL>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Boeing
partnerships on the commercial side are just as striking: </FONT></P>
<UL>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Snecma builds the
engines for our next-generation 737—a program expected to generate
about $7 billion in revenue for Snecma during the first eight years of
the program. </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">Half of Boeing’s
newest jetliner, the 100-passenger 717, is built by European companies,
including Austria’s Fisher Advanced Composite Components. </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">The Boeing Commercial
Airplane Group expects to provide almost $14 billion in revenues to
European partners over the next five years, supporting more than 90,000
jobs in Europe annually. </FONT></LI>
<LI><FONT COLOR="000000" SIZE="3" FACE="Palatino">The International
Space Station, a 16-nation partnership, has 11 partners from the
European Space Agency. </FONT></LI>
</UL>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">All told,
Boeing works with more than 435 European companies, large and small, in 19
countries. We are the prime contractor on some programs and a
subcontractor on others—just as it should be. And from all of
this work, from our perspective, it is abundantly clear: When we “think
global” and “act global,” our customers get the highest
quality product, produced by the most skilled teams, wherever those teams
may be, and they get it at the best price. </FONT> </P>
<P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>CONCLUDING
REMARKS</B></FONT></P>
<P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Understanding
our customers and their requirements, developing transatlantic links and
industrial partnerships, providing higher-quality and lower-cost defense
systems—to accomplish all this takes time, and it takes dedication,
commitment, and vision. The commitment is demanding, but the rewards
are worth it. If we do our jobs right, the security benefits for
NATO, and the economic opportunities for its member-countries, will
continue to grow. And we can all look forward to the new century
with hope and confidence in the future of this great Alliance.</FONT></P>
<P ALIGN="LEFT"><A HREF="sears98.htm">Go to Top of Page</A><BR>
</P>
<P ALIGN="LEFT"><A HREF="workshop98.htm">Return to Vienna '98</A><BR>
</P>
<P ALIGN="LEFT"><A HREF="../index.html">Return to Home Page</A></P>
<P ALIGN="LEFT">Copyright © 1998 Center for Strategic Decision
Research</P>
</BODY>
</HTML>