Czech Republic Defencesecurity Industry Forecast

The Czech Republic Defence & Security Report

    • Independent 5-year Defence and Security industry forecast for the Czech Republic.
    • Original Defence and security market research and the defence & security sector trend analysis for the Czech Defence and Security  industry.
    • Competitive intelligence, Czech defence & security company rankings and SWOT analyses on international and domestic defence & security companies in the Czech Republic.

The Czech Republic Defence & Security Report has been researched at source in 2008, and features latest-available data covering all headline indicators; 5-year industry forecasts for the Czech Republic through end-2012; company rankings and competitive landscapes covering national and multinational arms and components manufacturers, electronic and software producers, and companies providing defence solutions, as well as analysis of latest industry developments, trends and regulatory changes in the Czech Republic.

Business Monitor International's Czech Defence & Security Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Czech defence & security industry.

Key Benefits of Report

    • Benchmark BMI’s Independent 5-Year Defence & Security Industry Forecast on the Czech Republic to test other views - a key input for successful budgetary and strategic business planning in the Czech defence and security market.
    • Target Business Opportunities & Risks in the Czech Defence & Security Sector through reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Czech Republic
    • Exploit The Latest Competitive Czech Defence & Security Intelligence & Company SWOTS on your peers and competitors through company rankings by sales, market share, investments and leading products and services.

 

Coverage

SWOT Analysis

Snapshot evaluation of the major issues affecting security, the defence sector, economy and politics, with issues subdivided into ‘strengths’ ‘weaknesses’ ‘opportunities’ and ‘threats’.

Political Risk Assessment

Drawing on BMI’s twenty-year heritage of Country Risk analysis, this comprehensively evaluates the key risks to domestic politics and
foreign relations, focusing on issues most likely to affect either domestic security or the defence sector.

Security Risk Analysis

BMI’s proprietary Security Ratings provide a reliable – and country comparable – guide to conflict, terrorism and criminal risk, backed up by our analyst’s latest assessment of each component. Furthermore, drawing on our Country Risk expertise, we assess the state’s vulnerability to a serious – or prolonged – terrorist campaign.

Defence Industry Assessment

Overview of industry landscape and key players; public/private structure, size and value of industry sector; assessment of business operating environment and latest regulatory developments; indepth review of recent procurement trends and developments.

BMI 5-Year Forecasts

Historic data series and 5-year forecasts to end-2011 for key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast. Defence expenditure (local currency and US$bn); defence expenditure (% of total budget); defence expenditure (% of GDP); defence expenditure per capita, US$; defence budget (local currency and US$bn); employment in arms production (‘000s); employment in arms production (% of labour force); arms imports (US$mn); arms imports (% of total imports); arms exports (US$mn); arms exports (% of total exports)

BMI 5-year forecast and analysis of all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Company Profiles

Company profiles, including senior executives and full contact details, business activity, products and services, foreign direct investments and projects.

BMI's Executive Summary

[TOP]

Although the centre-right coalition government which took office at the beginning of 2007 under Prime Minister Mirek Topolánek had a wafer-thin majority, it had settled down to the business of government relatively well, and BMI's view continued to be that the country's defence and security fundamentals were strong. In August 2007 the administration was able to secure parliamentary approval for a package of tax and expenditure reforms that were set to contribute to an improvement of the underlying fiscal position on the medium term.

A key defence story in 2007 was the Czech Republic's enthusiastic support for a proposed strategic US missile defence system. The US$3.5bn system would include construction of a radar base in Brdy, some 80km southeast of Prague, as well as 10 ground-based interceptor missiles in northern Poland. If implemented, the system would link the Republic more closely into US and potentially NATO defences, as well as bringing a big defence contract to the country. Among the potential negatives was exposure to Russia's hostile response to the programme (which Moscow saw as a return to Cold War-style spying on its own territory), rather than, as stated, a defence of Europe against missile attack from rogue states such as Iran. A further disadvantage was that the radar base could raise the Czech Republic's profile as a desirable target for terrorist groups. However, whether the US progresses with the project or not will largely depended on the outcome of the US presidential elections in 2008.

Although not a major issue, there have been continuing concerns over corruption in public life, highlighted in November 2007 when deputy Premier Jiri Cunek was forced to resign following allegations that he had claimed social welfare payments inappropriately and had been involved in alleged bribery some years earlier when mayor of the city of Vsetin in the east of the Republic. Cunek denied any wrongdoing and said he was stepping down to clear his name.

The country ranks highly in BMI's security risk ratings. The Czech Republic faces limited security threats. The Czech lands do not have a history of political violence and the two historic political changes, 'The Velvet Revolution' which ended the Communist era in 1989, and the division of Czechoslovakia into the Czech Republic and Slovakia in 1993, occurred without loss of life or significant violence. The country also enjoys good to excellent relations with all of its neighbours and none of its borders are in dispute. Historically, terrorism has also factored little. However, increasingly it has become at risk, most notably because of the country's support of the US in the 'war on terror' in Afghanistan and operations in Iraq.

The Czech Republic's defence industry is well-suited to meet the country's security needs. Its armed forces are currently undergoing reform and modernisation as required by its membership of NATO. Despite a reduction in military expenditure, the drive for interoperability with the multinational organisation has provided both the impetus and the opportunities for the defence industry in terms of research and development and the production of more advanced military hardware. However, the Czech industry is still incapable of manufacturing most advanced conventional weapons systems and requires large procurement deals from overseas.

The Czech Republic is relatively stable and free from significant security threats, but whilst the Czech armed forces have reliable access to the military equipment it requires, the country would do well to invest in its indigenous industry. The Czech defence industry must seek out export markets to survive, however, although new, high technology companies should be able to develop a niche market in which the Republic can specialise.

Chapter 1 - Executive Summary

SWOT Analysis

Czech Republic Political SWOT

Czech Republic Security SWOT

Czech Republic Defence Industry SWOT

Czech Republic Economic SWOT

Chapter 2 - Political Overview

BMI Core Scenario

Domestic Political Outlook

Stuck In A Mess

Painstaking Progress

A 'Caretaker' Government?

Chapter 3 - Security Risk Analysis

BMI’s Security Ratings

Risk Ratings

Table: Czech Republic Regional Risk Ratings

Table: Czech Republic State Terrorism Vulnerability Index

Regional Security: Europe

Overview

Internal Terrorism

International Terrorism

Criminal Activities

Czech Republic Security Risk Ratings

Czech Republic Conflict Risk

Czech Republic Terrorism Risk

Czech Republic Physical Safety Risk

Chapter 4 - Security Overview

Internal Threats

Organised Crime

Corruption

External Security Situation

International Terrorism

Chapter 5 - Military Structure & Defence Industry

Armed Forces

Table: Regional Armed Forces (including conscripted) 2006

Defence Reform

International Deployments

Table: Czech Republic Foreign Deployments

Co-ordination And Joint Operations

Table: Selected Training Events/Exercises In Which The Czech Republic Took Part In 2004:

Weapons Of Mass Destruction

Chapter 6 - Market Overview

Arms Trade Overview

Imports

Exports

Industry Trends & Developments

Table: Czech Republic Defence, Key Players

Procurement Trends & Developments

Table: Recent Procurement Contracts

Chapter 7 - Industry Forecast Scenario

Table: Government Expenditure On Defence Industry

Army Enlargements

Government Expenditure on Defence Industry

Key Risks To BMI’s Forecast Scenario

Chapter 8 - Macroeconomic Forecast

Table: Czech Republic – Economic Activity

Chapter 9 - Company Profile

Aero Vodochody

Chapter 10 - BMI Forecast Modelling

How we generate our industry forecasts

Defence Industry

Sources

Chapter 11 - Appendix A: Risk Ratings Methodology

Conflict Risk Methodology

Terrorism Risk Methodology

Physical Safety Risk Methodology

Overall Risk Rating

State Vulnerability Index

Competitive Landscape for European Defence & Security: Sample of  
Companies Ranked

[TOP]

Rankings and Competitive Landscapes by production and sales; market share and change on previous year; number of employees, ownership structure and year established. Also includes analysis of company expansion, export and investment strategies.

Network of Defence & Security Sources

[TOP]

BMI's European Defence & Security Reports are based on an extensive network of multilateral organisations, government departments, automotive industry associations, chambers of commerce and company reports. Information sources include:

 

Read about our other Defence & Security Reports

Asia Europe Middle East & Africa North & South America
UK
UAE
[top]

 

Business Monitor International

Business Monitor International
A Market Leader in Country Risk, Industry Intelligence and Company Research

Mermaid House, 2 Puddle Dock, Blackfriars, London EC4V 3DS, UK

BUSINESS MONITOR INTERNATIONAL's country risk analysis and forecasts, market research on leading industries, and multinational company research is relied upon by corporates, banks, government departments and multilateral organisations in over 125 countries around the world.

Country Risk Analysis and Forecasts
BMI
has for 25 years specialised in political risk analysis, financial markets analysis, and macroeconomic forecasts on 175 global markets.

Industry Intelligence and Market Research
BMI's industry research covers Automotives; Banking; Chemicals; Defence & Security; Food & Drink; Freight Transport; Information Technology; Infrastructure; Insurance; Mining; Oil & Gas; Petrochemicals; Pharmaceuticals & Healthcare; Power; Telecommunications, and Tourism.

Company Research
BMI maintains a fully-researched 55,000-site database of multinational company subsidiaries located across global markets.