Propellant Industry: Past, Present, Future

1 AD-A276 8201992 Executive Research ProjectF36aPropellant Industry: past , present , FutureLieutenant ColonelClifton J. Broderick DT S. Army s *0 1994 Faculty Research AdvisorColonel Marcus R. Erlandson, USAThe Industrial College of the Armed ForcesNational Defense UniversityFort McNair, Washington, 20319-600094-07739 DI U~~!I;IlIll JI~l/ii~rl1119411 13 8 164ll18 UnclassIfiedSECURITY CLASSIFICATION OF THIS PAGEREPORT DOCUMENTATION PAGEla. REPORT SECURITY CLASSIFICATION lb. RESTRICTIVE MARKINGSU nclassified2a. SECURITY CLASSIFICATION AUTHORITY 3 DISTRIBUTION/AVAILABILITY OF REPORTN/A Distribution Statement A: Approved for public2b. DECLASSIFICATION/ DOWNGRADING SCHEDULE release; distribution is PERFORMING ORGANIZATION REPORT NUMBER(S) 5.

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4 SECURITY CLASSIFICATION OF THIS PAGEAll other editions are obsolete. Unclassified1992 Executive Research ProjectF36aPropellant Industry: past , present , FutureAccesion ForNTIS CRA&IDTIC TABU nannouncedrJustificationL i e u t e n a n t C o l o n e l -. ---"- ..Clifton J. Broderick By ..D11 ibutio IU. S. Army Availability CodesAvail a;;dd orDistFaculty Research Advisor 1i01 Colonel Marcus R. Erlandson, USAThe Industrial College of the Armed ForcesNational Defense UniversityFort McNair, Washington, 20319-6000 DISCLAIMERThis research report represents the views of the author and does not necessarilyreflect the official opinion of the Industrial College of the Armed Forces, the NationalDefense University, or the Department of document is the pioperty of the United States Government and is not to bereproduced in whole or in part for distribution outside the federal executive branchwithout permission of the Director of Research and Publications, Industrial Collegeof the Armed Forces, Fort Lesley J.

5 McNair, Washington, soldier can survive in combat for:-- seven days without food;-- for three days without water;-- but, not one minute without purpose of this essay is to examine the developmentof the Propellant production base from its past , present , andits Future state. Some of the questions I hope to answer are:If the production base for Propellant is drawn down; willthis affect the United States' ability to meet its securityneeds? What -if any -influence will the overseas sourcesplay in meeting our production and mobilization requirements?What are the environmental impacts on the Propellant productionbase - present and Future ? How is the Propellant productionbase integrated with the overall ammunition industrial base?

6 What does the phrase defense industrial base mean? Thedefinition that is used most often -- "the defense industrialbase is broadly viewed as encompassing those elements of Americanindustry that contribute to defense related work and whoseproduction capacity and technical expertise are required tomeet national security."(1) Ammunition production is a criticalelement of the defense industrial United States national security strategy has recentlyundergone a major change, concerning the security risk or threatthat the United States was prepared to engage if is due largely to a change in the East -West relationsthat occurred with the falling of the Berlin Wall and ultimatelythe failure of communism.

7 Previously the threat was establishedwhen other governments procured armaments for essentially threepurposes: to enhance their national security, to promote regimestability and to expand economic growth.(2) The national securityof the United States was tied directly to our ability to counterthese threats. The key question now is -- what is the threatto the United States? Should our strategy be built and maintainedon a capability based strategy or a threat based strategy?The Department of Defense is presently developing a newsecurity strategy based on President Bush's guidance: "Ournew strategy must provide the framework to guide our deliberatereductions to no more than the forces we need to guard ourenduring interests --the forces to exercise forward presencein key areas, to respond effectively to crises, to retain thenational capacity to rebuild our forces should this beneeded".

8 And "maintain an effective deterrent."(3) Untilthis question concerning how the United States strategy willbe structured is resolved, uncertainty in all defense industries,including the armaments industry , will exist. How much ammunitionis necessary? Do you keep the ammunition production base warmor place it in a stand-by status?In the armaments industry , and looking specifically atthe Propellant industry , the long pole in the tent is the timenecessary to start up and then sustain production. Propellantsare a critical element in all ammunition explosive basically provide the power that propels a piece ofammunition from the weapon after ignition. The manufacturingof propellants is a very unique process and has limitedutilization outside of the government.

9 From an economicprospective, the Propellant industry would be classified asa "demand element"(4) in relation to the overall ammunitionindustrial base. Ammunition will not function without sometype of propelling charge. The Propellant industry is thereforetied directly to the ammunition industrial base. Presently,the overall ammunition base is shrinking -- therefore so wil)the Propellant base. Except for the requirement for huntingand sporting ammunition (rifle and pistol), there is no privatecommercial counterpart or a real market that exists outsideof orders from federal and other government customers for thearmament industry . (5) A unique market does exist for propellantsthat are used in rocket motors that propel space crafts forthe National Aeronautics and Space Administration (NASA).

10 The market for ammunition procurement is one of a singlebuyer or a monopsony condition. The free market system isnot at all sensitive to the United States national securityor defense. Private industry 's incentive to produce a productis basically for profit. Their operating method is that ofself-interest rather than what would be in the best interestof this country. The government has to be sensitive to theseconditions and not rely on the myth that a free market willfoster efficiency and innovation through competition. Thisis especially pertinent in the armament industry , where the-3-product is so unique. The government has to provide incentivesfor corporations to be interested in operating a defense armamentplant.