"Elbit is not just another Israeli company," says Joseph Ackerman, President and CEO of Israel's largest privately-owned defense conglomerate. “Two key factors that differentiate us from other Israeli industries are our 'multi-domestic' nature and our public transparency in our business conduct.
“As a privately held company, Elbit cannot and does not wish to depend on government assistance for its survival. We have our own financial resources. We are business driven. We manage our company by annual and quarterly goals which are clearly reflected in our public reports, just like most of our U.S. counterparts. This business approach has proven itself beyond any doubt, as we have maintained steady growth for the past 10 years and are expected in reaching sales of $1 billion this year.”
How do you define 'multi-domestic' approach?
“Due to the specific nature of defense business, defense oriented companies usually have a 'home market' on which they maintain focus — on closest relations with defense establishments and clients, R&D capabilities etc. As a multi-domestic company, Elbit maintains such presence in at least two of our key markets — Israel and the USA. Both are strategic markets for us, making 65% of our turnover. We appreciate the opportunities the U.S. market opened for us and respect all the limitations and requirements set by our customers. To sustain this activity we established local R&D, production and support and as a result, our U.S. operations are steadily growing. Our U.S. focus is also reflected by the scale of our local activities – with 1,300 U.S. employees in several states."
What are your expectations for 2005?
“In 2005 Elbit Systems alone is expected to surpass the $1 billion mark, and once the merger with Elisra Group and Tadiran Communications has been implemented, total sales of the merged corporation in 2006 could top $1.5 billion."
Is privatization your proposed roadmap for Israel's defense industry?
"The merger between Elbit Systems and Tadiran Communications is synergetic, with minimal overlap; it is a merger between two matured and healthy companies, providing advantages for both sides. In the merger between Elbit and Elop we had much more overlap in our operations, but the merger proved to be extremely beneficial for all concerned. At the end of the road we will see two local defense industries — one privately held and the other governmental/partly privatized.
“Companies must also become adaptive to constant market changes. Elbit has its roots in the world of defense electronics. We continue to offer such systems and are considered among the world leaders in advanced avionics, electro-optics and lasers, including a wide family of payloads. However, the defense electronics we offer today encompass much larger solutions. We also provide complete systems…making the building blocks of entire strategic and tactical command and control systems for aerial combat and homeland security that integrate into advanced multi-platform intelligence systems, from space systems, through unmanned systems of all sizes."
What about commercial avionics? Has Elbit made plans for this market?
"We have recently identified the advanced avionics domain — a niche in the commercial aviation market representing significant growth opportunity. Our offerings to this market are based on our defense systems expertise, primarily avionics and electro-optics. Among the systems currently under development and production are laser-based obstacle detectors optimized for helicopters, self-protection systems for commercial aircraft, head-up displays and enhanced vision systems (EVS) for commercial and business jets, which have won the coveted Collier Trophy. Some of these products are already in production for Gulfstream and FedEx.
“Commercial avionics is a new business area for Elbit which is considered to be of a strategic importance for our future growth. The market is ready for such advanced avionics and is looking for novel solutions; the operators in business and commercial aviation are looking for top performance in extreme conditions, requiring enhanced sensors, vision, warning and protection. We learned how to design, develop, manufacture and certify such systems, and expect this activity and the market to continue and grow further in the future." —Tamir Eshel
