Boeing's defence unit confident of contributing more to the business

Dubai: The crisis in Western economies and increased spending capabilities of emerging markets have seen Boeing Integrated Defence Systems (IDS) targeting a growing international market as the Dubai Air Show brings government spenders from around the world to critique products.

Currently, IDS sells 15 per cent of its defence products to international customers, with the rest being bought by the US government. Dennis Muilenburg, president and CEO of Boeing IDS, is hoping this figure will rise.

"We are continuing to see growing international demand for our products," said Muilenburg.

"It is one of the fastest growing segments and we expect our international business overall to go from being about 15 per cent of our business this year to 20 or 25 per cent of our business next year."

Whereas defence spending has come under intense scrutiny in a recessionary US, Muilenburg says countries from Japan, South Korea, Australia, the Middle East, India and Brazil are all showing interest in buying. Products such as the C17 plane and Chinook helicopters are proving most popular, he added.

"Really we see broad-based growth around the globe right now," he said.

"A lot of our customers right now are at a point where they need to refresh their forces. We see that trend around the globe right now."

The trends will not be lost on Boeing's competitors, admits Muilenburg, but they are hoping a two-pronged approach will help them win over regions.

Boeing IDS has cut the "up front" costs of its products through efficiency drives in its factories and on engineering techniques. However, maintaining a lasting presence in regions such as the Middle East will be key, he said.

The company is focusing much of its effort at the air show to developing partnerships with its customers in the region, ranging from business support to technical training. Muilenburg pointed to last year's Al Salam deal in Saudi Arabia as an example.