Bridging the Gap – Challenges for companies entering the Dutch Defense market
Navigating long, complex procurement processes while the government faces hurdles in turning new defence strategies fast into action. Close collaboration between the industry and government is crucial to enhance its capabilities and achieve strategic autonomy. How can industry and government work together to address these challenges? Unified International plays a key role for Industry in bridging this gap.
We spoke with Albert Timmers, Senior Associate ‘Defence’ at Unified International, to explore these challenges and gain insights into the company’s approach to addressing them. With a career as a navy officer and as a reservist, Albert is familiar with high-performance, 24/7 organisations like the Defence organisations. His experience positions him perfectly at the intersection of industry and government, making the defence sector a natural fit for his expertise.
Now, in his current role, Albert continues to contribute to the defence mission, protecting what is dear to us. “For me, this means ensuring that those whom we, as a society, send into harm’s way are as well-prepared as possible, equipped with the best materials available”, he explains.
Can you describe the current challenges in the defence sector? What are the biggest obstacles?
There are two perspectives to answer this question: industrial and governmental.
On the government side, the new Defense note 2024 (published in September) indicates many initiatives to be fulfilled. However, implementing the Defence Industry Strategy effectively remains challenging. It requires a lot of coordination, budget and manpower to translate the new policy into operational capabilities on land, in the air and at sea.
From the industry’s perspective, it is clear that outsider companies, whether civil or foreign, face significant challenges when transitioning into the Dutch defence sector. The Dutch defence landscape and material processes, has specific requirements, networks, language, and procedures that can be difficult to understand. Furthermore, we see that it is challenging for companies to secure financing for investments. We have experienced firsthand that, while agreements have been made with banks at the strategic level, it remains difficult for the industry to obtain working capital in the day-to-day operation, even with an already signed defence contract in hand.
How does Unified International support the navy, air force, industry and army in overcoming these challenges?
At Unified International, we are the connecting link and interface between industry and government. We are on a daily basis actively involved in the network of industry, defence organisations, and policy ministries. We see and hear a lot, connecting the dots to create win-win situations, meeting operational needs and meanwhile creating sustainable business. As a result of this it is our ambition to fulfill a defence capability, and the industry sells its products. For us, this goes far beyond just a transactional relationship. We believe it is important to generate energy collaboratively and involve as many Dutch parties as possible. Unified International plays a key role in bridging this gap.
What unique expertise does Unified International bring to the table?
We combine competencies in several key areas, including military operations, technical knowhow,project and program management and legal expertise. This, coupled with an entrepreneurial spirit and a ‘can-do’ attitude, sets us apart. Our former colleagues at the Ministry of Defence also value our support, understanding that our involvement aligns ultimately with their interests as well.
How does Unified foster collaboration between the Dutch industry and the Ministry of Defence, and why are these partnerships crucial for achieving success in defence projects?
We strive to create a connection between industry and the defence organisation by bringing together people and knowledge. It is crucial that our military operational units receive the equipment they need to succeed. Through our network, we connect with companies that can supply this equipment and we support companies in making the right developments with future military use in mind, including international co-production and scale-up opportunities. By fostering EG cross-sectoral collaboration, we aim to enhance innovation and effectiveness in defence-related projects.
What opportunities do you see for collaboration and innovation between civil and defence sectors?
Investing in defence is not just about ‘buying’ military- or dual-use products; it’s also about ensuring that we are prepared and remain flexible to address any future challenges. In other words: creating a future-proof capability. This means fostering an ecosystem of industry and government together in which civilian innovations can be seamlessly integrated into defence systems, meanwhile, autonomy and adaptive capabilities are key. Government support plays a crucial role in this process by creating favourable financing conditions, offering clear guidance on development priorities, and providing guarantees on future contracts.
What factors do you consider when evaluating the feasibility and potential success of industry products?
First and foremost, we evaluate the alignment with military operational needs, assessing whether the product meets the specific operational requirements of military personnel in the field and its potential to be integrated into existing systems.
Secondly, we consider the product’s flexibility, particularly its ability to adapt from civilian use to military applications (dual use). This adaptability often requires minor adjustments but demands strong commitment and collaboration from the industry.
Finally, we emphasise a solid supply chain and local support. We evaluate the product’s support infrastructure, including the proximity of maintenance and operational support. Ensuring critical enablers are available close to key locations, such as military bases, is crucial for strategic autonomy and long-term success.
Can you provide examples of defence initiatives Unified is currently (or has been) involved in?
Unified International has supported Fokker Services Group for the last two years in becoming part of the recently signed acquisition contract for the C390 Tactical Transport aircraft at Embraer. Fokker Services Group will be responsible for the conversion of the aircraft into a deployable NATO weapon system and will provide maintenance during the ‘entry-into-service’. This arrangement allows the RNLAF to meet its need to have this critical enabler close by (at the same airbase, Woensdrecht) and contributes to the desired deployability and strategic autonomy of the RNLAF in the long run.
About us
Unified International Defence is a recognised consultancy firm that supports companies and the government within the Dutch defence domain. In defence advisory projects, our focus is on strategic positioning, procurement, and materiel projects. We are also strong in project and program management. Unified International leverages strong relationships at all levels within the defence domain and relevant ministries on a daily basis. We are entrepreneurial, proactive, and have a can-do attitude.
