DEFENCE SUPPORT GROUP BOUYANT AFTER FIRST TRADING YEAR
24 Jun 09. Transforming its business in the space of just twelve months is a major accomplishment for any organisation and the Defence Support Group (DSG) is no exception, delivering a remarkable performance for its main customers in the UK Armed Forces in its first year of operation. This level of performance is even more noteworthy as DSG was only created in April 2008 and started the trading year with some challenging targets set by its owner.
Over the year, DSG witnessed increases in efficiencies across its Land and Air businesses, which has helped deliver greater output whilst controlling, and in some cases reducing, its costs. This, in turn, has allowed DSG to reduce prices and improve output for the customer.
Commenting on DSG, MOD’s Chief of Defence Materiel at DE&S, General Sir Kevin O’Donoghue said; “I have witnessed, with great interest, the progress DSG has made following its creation last year. It is clear that the management team and employees in DSG share a common vision and are working closely together to realise the tangible benefits that continue to deliver best value for the UK’s Armed Forces. DE&S recognises the strategic support that DSG provides to MOD, particularly in relation to Land and Air equipment programmes, and DSG must form a relevant part of our strategies for through life management of our platforms and equipment.
“When visiting DSG, I am also greatly impressed by the enthusiasm and genuine commitment and pride of the DSG employees who are always so willing to volunteer for deployments to Front Line operations. We recognise that the DSG employees are highly innovative and show great entrepreneurial flair and business acumen but the challenge for DSG is to remain cost effective and continue delivering best value for defence.”
In just one year, DSG has already stamped its marque on the UK’s defence maintenance, repair, overhaul and upgrade sector. With a workforce that enjoys several decades of expertise in defence equipment support across a varied range of military platforms, DSG is commanding increasing levels of respect from both within MOD and the wider defence industry.
Adding his own views on DSG’s first year, the Chief Executive, Archie Hughes, had this to say. “The foundations on which DSG is now established will provide the stability that is essential if we are to consolidate and build upon all the positive actions we have put in place during the past year. As an MOD asset we must also continue transforming our business if we are to retain our position as an in-house provider of skilled maintenance, repair, overhaul and upgrade services to the UK’s Armed Forces.”
DSG’s first set of Annual Report and Accounts will be published and laid before Parliament next month.
The House of Commons Defence Committee Defence Support Group Seventh Report of Session 2008–09 confimred how ell DSG was performing in its new guise.
The Inquiry
1. The Defence Support Group (DSG) is a wholly-owned UK Government Trading Fund established to support the Armed Forces and to deliver wider defence objectives in support of the Defence Industrial Strategy (DIS). It was launched on 1 April 2008 following the merger of the Army Base Repair Organisation (ABRO) and the Defence Aviation Repair Agency (DARA). As the Ministry of Defence (MoD) set out in its memorandum to us, the
four main DSG business streams cover Armoured Vehicles, Land and B (unarmoured or ‘soft’) Vehicles, Large Aircraft and Electronics and Components. These business streams operate across eighteen sites supported by the DSG Head Office, currently located at Andover.
2. We announced our intention to examine DSG in November 2008, following our seminar at Shrivenham when we considered our forward programme for 2009. Our formal call for evidence was issued on 17 December 2008 and set out our key areas of interest:
• the future work, role and status of DSG;
• the