Saab is a long-established defense company, but in recent years the company has more closely resembled a growth company. Countries are investing enormous amounts in strengthening their defenses and the pressure is on the defense industry to deliver quickly.
Are you fast enough?
"You're never fast enough, or at least never really done. We're working incredibly hard on that issue," says Saab CEO Micael Johansson at the People and Defense National Conference in Sälen.
New thinking
It's about investing in increased capacity and innovation. But it's also about changing a culture that is entrenched.
"We need to rethink, both the industry and the contracting authorities. We need to think that you don't buy something that is optimized perfectly from day one, but something that is good enough, which then keeps getting better," says Johansson.
He gives an example of how buying a new mobile phone works, how it is constantly updated. This is how new defense technology must also be offered, for example when it comes to drones, where development is happening at lightning speed.
"No one wants to buy a million drones and stockpile them, but they will buy a service, I would say, a subscription service."
"This is completely new for a defense force. Buying capabilities in this way, not having a thousand-page specification that you then have to deliver on, but having a basic capability that we then commit to continuously developing."
Increased interest
Right now, there are countries that are reviewing their dependence on the United States, for example Canada, which is evaluating future purchases of the American F-35 fighter jet, and where JAS Gripen is one of the options.
Do you notice that interest in you is increasing?
Absolutely, says Micael Johansson.
This is not only due to a general preference for the European defense industry; for Saab, NATO membership has also provided a boost.
Saab's order book is bursting with orders; the order backlog is just over SEK 200 billion. Examples from recent months include Colombia's order for 17 JAS Gripen E/F, a deal worth around SEK 34 billion, and the French defense ministry's purchase of two GlobalEye reconnaissance and command aircraft for over SEK 12 billion.
Continued pressure
Saab's CEO expects that the pressure in the defense industry will persist for a long time and the company will continue to grow, in collaborations and on its own.
"It's clear that it's a delicate task to grow as much as we are. But I don't want to set a target for how much we can grow, here but no further. That's not how it works."
