From Gaza to Washington: Israel Aerospace Industries leverages success for US market growth

Israel Aerospace Industries (IAI) is leveraging the operational successes of its products in the Gaza war to increase its sales in the American market, while expanding its participation in upcoming large tenders from the U.S. Army and the Department of Defense. Over the last two years, IAI, through its subsidiaries in the USA, Elta North America and Stark, has achieved annual sales of about one billion dollars—a significant recovery after years of unfocused and unstable activity in this market.

One of the company's goals in the American market is to double its sales by 2030, by adapting dedicated products for the U.S. military in the fields of autonomous tools, precision fire capabilities, loitering munitions, and defense systems against attack drones. Additionally, IAI aims to strengthen ties with local companies through industrial collaborations and joint bids on U.S. Army and Pentagon tenders. The plans also include acquiring local companies through its two subsidiaries to develop a product basket focused on the market.

Elta North America is currently in the final stages of acquiring a local company, with the details of the deal in advanced approval stages. IAI declined to disclose the deal's scope and the acquired company's area of activity. Amir Geva, VP of North America at IAI, told Calcalist, "This is not the only acquisition on the agenda. Elta North America is also in talks to promote the purchase of another 2-3 companies, in line with our strategic plan. These companies will serve as platforms to leverage IAI’s activities in the U.S."

Elta North America and Stark are registered in the U.S., allowing the defense system to purchase equipment and systems from them using American defense aid funds, which amount to about $3.8 billion a year. Elta North America is a subsidiary of IAI's radar company, Elta Systems, and is part of the plan to equip the Polish army with a large observation balloon as part of a project worth about $1.4 billion. The American company Raytheon is the leading contractor in the Polish program, with TCOM and Elta North America as partners. Elta's share in the deal is estimated at about $400 million, providing the radar for the balloon. Incidentally, the Israeli Air Force's "Sky Dew" system, which was recently hit by a Hezbollah explosive drone, was based on a TCOM balloon and an Elta radar.

IAI's new visitor center in Washington is located a few hundred meters from the Capitol. According to company executives, the center's proximity to decision-makers will improve accessibility to senior officials and help develop and foster relationships. The company intends to showcase all its products at the new center, allowing American procurement agents and government representatives to be impressed without traveling to Israel.

"We are aiming for big projects that will mature in 4 or 5 years, so we need to be deeply involved already. Our proximity to the Capitol can only help, especially in dealing with budget officials and Senate committee members," said Geva. In addition to the visitor center, IAI plans to open an innovation center in about two months to develop relations with local companies and entrepreneurs. IAI Chairman Amir Peretz, who initiated the new center's establishment, said it "will be an important bridge between the company and the American public, with an emphasis on decision-makers in Washington." CEO Boaz Levy added that "the new center will significantly increase opportunities for collaborations in the American market." The inauguration ceremony for the visitor center was attended by the chairman of IAI's workers' committee, Yair Katz, Israel's ambassador to the U.S., Michael (Mike) Herzog, and the IDF attaché in Washington, Major General Hedy Silberman.