The UK Ministry of Defense (MOD) selected South Korea's Daewoo Shipbuilding and Marine Engineering to build and deliver four new tankers

Wednesday 10 October 2012, Amsterdam

The top three regions expected to experience the fastest growth in the defense industry in the next 12 months are forecast to be the US, Germany, and the UK, as voiced by 57%, 55% and 48% respectively, of all respondents from the defense industry. Notably, the US, Germany, and India were identified as the most important markets for growth in demand for sustainable products and services in the ICD Research sustainability survey conducted in 2010 and 2011.

Overall, ‘effective risk management’ and ‘staying ahead of technological developments’ are each considered the most important drivers of sustainability by 44% of respondents from the defense organizations. Moreover, ‘cost savings and operational efficiency’, ‘strengthening competitive position’, and ‘client demand’ are considered the most important drivers by 77%, 58%, and 55% of respective respondents from defense contractors; in addition, ‘client demand’, ‘cost savings and operational efficiency’, and ‘growth opportunities’ are identified as the main drivers by 60%, 59%, and 55% of respondents from other service providers respectively. During the 2011 survey conducted ‘cost savings and operational efficiency’, ‘client demand’, and ‘compliance with legislation’ were identified as the key drivers by defense contractors and other service providers.

The survey results reveal that 44% of respondents from defense organizations each highlighted ‘effective risk management’ and ‘staying ahead of technological developments’ as the main drivers of sustainability, and 32% of respondents from defense organizations each identified ‘managing corporate reputation’ and ‘positive outcomes for the environment’ as important drivers of sustainability. For example, the UK Ministry of Defense (MOD) selected South Korea's Daewoo Shipbuilding and Marine Engineering to build and deliver four new tankers for the Royal Fleet Auxiliary, to maintain the Royal Navy's ability to refuel warships and task groups at sea. The new Military Afloat Reach and Sustainability tankers will support deployed amphibious, land, and air forces close to the shore and are designed to allow the incorporation of upgrades and new technologies in the future.