In this joint interview European Security & Defence (ESD) asks two of the top executives from Israel’s IMCO Group, CEO Ariel Kandel and CBO Yoav Ben-Shem, to share their insights as IMCO enters its fifth decade of being a prime and secondary contractor to the Israel Defense Forces (IDF) and other defence and security customers worldwide.
ESD: IMCO has a rather impressive capabilities portfolio today. How did it come into being, and what is its core business focus?
Ariel Kandel (AK): Established five decades ago, IMCO has a rich history of specialisation in the development, design, and manufacture of electrical and electronic systems initially focused on defence naval platforms.
Over time IMCO expanded its expertise to encompass land and airborne platforms as well. This journey of growth and innovation led the company to establish its US subsidiary ADTi, aimed at facilitating projects funded by the US Department of Defense’s Foreign Military Financing programmes and forging stronger ties with the US defence industry.
ESD: How has IMCO evolved over the years?
AK: Let’s look at IMCO as a journey. Fifteen years ago we made another set of strategic steps that underscored our foresight and ambition. We acquired Nir-Or to significantly expand our capabilities and expertise. The acquisition meant a crucial enhancement of our technological prowess, particularly in the domain of smart multi-functional displays (MFDs), video processing units, and smart power supply management units. These cutting-edge products and solutions were expertly and specifically tailored for naval, land, and airborne platforms. They set new standards in operational efficiency and reliability in a way that no one else was doing at the time.
Our foray into the world of airframe, land platform, and naval vessel computerised suites and MFDs through Nir-Or was not just about embracing advanced technology; it was about reshaping the future of tactical and strategic operations across various platforms. By integrating the newly acquired expertise and innovation into our core business, we offer more comprehensive, robust, and sophisticated systems to our clients.
The Nir-Or acquisition of was more than a step forward for IMCO; it was a leap into a future where we continue to set the bar for our excellence and innovation within the security and defence industry.
Fast forward to now, and we witness a significant evolution in IMCO’s journey. The year 2024 marks a pivotal point where we expand our portfolio again and transform it into being a strategic partner for more major defence integrators and take these learnings and apply them in other industries.
It was really our relentless pursuit of enhancing our value proposition over the years that led us to establish Atena: a groundbreaking Israeli subsidiary and a gateway into the industrial market. This strategic move marks a significant leap in our journey, as Atena is not just a subsidiary; it’s a symbol of our commitment to innovation and excellence.
Atena is specifically designed to provide comprehensive turnkey solutions across various industrial sectors. We are particularly excited about our foray into the fields of medical devices and robotics. These are areas where precision, reliability, and cutting-edge technology are not just desired, they are mandatory. By venturing into these sectors, we are not only expanding our business horizons but also contributing to critical industries that impact lives and the future.
ESD: Why is this?
AK: IMCO’s evolution is centred around a deep understanding of the changing dynamics and growing complexities of the global military landscape.
Recognising the need for integrated solutions, we have extended our offerings to provide comprehensive planning and delivery of subsystems for global air and land platforms. This is a strategic enhancement of our capabilities, enabling us to offer holistic and sophisticated solutions.
The journey of IMCO has always been about running up to and pushing boundaries. As we continue to grow, evolve, and set new benchmarks, our commitment to excellence as a team of dedicated professionals, engineers, and technology visionaries remains. Because the outcome of what we innovate is a matter of life or death, we are passionate about delivering the best to our clients.
As we move forward, we remain committed to being an integral partner in driving innovation in the global defence market. Our expansion in 2024 is a testament to this passion and our relentless pursuit of excellence.
ESD: How has current war-time production affected overall output and customer requirements worldwide?
AK: As expected in traditional war-time production, IMCO Group remains focused on urgent customer requirements, particularly in supporting the national defence needs.
This is intensified by our exclusive contributions to the production of key military assets such as the Eitan and Namer armoured personnel carriers and the Merkava main battle tank. This reinforces our commitment to safety, reliability, speed, and excellence in defence technology.
The ongoing conflict serves as a testament to IMCO’s resilience and ability to shift production planning in the face of crises without sacrificing customer obligations at the same time. The Eitan, Namer and Merkava are deployed by the IDF to achieve counter-terror goals. Our involvement in these projects is proof of our ability to deliver under pressure and adapt to rapidly evolving modern warfare requirements.
The Hamas War was – is still – a catalyst that deepened our understanding of war-time production, leading to improved processes and customer relationships. Despite the formidable challenges this conflict poses, IMCO proved its ability to overcome physical and psychological obstacles in development, production, and customer support, ensuring our steadfast commitment to fulfilling expectations remains unwavering for all our customers.
ESD: What has IMCO learned from this profoundly personal experience and about wartime production?
Yoav Ben-Shem (YBS): Readers should understand that IMCO’s claim to being a ‘trusted defence partner’ is not just a promotional tagline. Let me share this insight with you on my way to explaining wartime production here at IMCO:
most of us are veterans and/or reservists of the IDF. With the exception of Ukraine, Israel is perhaps the only nation whose military suppliers were once, or are still, end users relying on what we develop and produce on the assembly in here to support their deployments out there in the line of fire. Few defence factory workers in the NATO nations have actually been under fire. That is a reality that drives our desire to produce the best for our customers at home and abroad.
This supports IMCO’s deep understanding of its customers anywhere, the adaptability needs of IMCO’s own operational management, and its work processes’ efficiency. These factors play a crucial role in IMCO’s achievements during this ongoing conflict. The substantial increase in orders, particularly for spare parts during wartime, highlights IMCO’s crucial role in planning to help the IDF maintain strength and readiness for ongoing operations.
IMCO’s dependability in meeting all commitments despite war-time challenges permeates every aspect of our work, from the initial design phase to ongoing support during routine and emergency situations. We have the required plans for leaner manning of our company when reservists are called up. So it is vitally important for IMCO to comprehend client needs and correctly predict how and when these will change. Any future plans will undoubtedly be influenced by these and other experiences.
ESD: How have IMCO’s production processes and protocols changed in light of current high-intensity conflicts around the world? How does it differ from producing to meet a customer’s ‘just-in-time’ supply chain during a low-intensity conflict?
YBS: While low-intensity conflicts generally have a limited effect on our Group operations, IMCO designed a robust framework of protocols to maintain operational stability during crises, which Israel has more than its fair share of. Like military doctrine, IMCO’s protocols address several scenarios, from the Covid-19 pandemic to intense conflicts such as the current Hamas War.
As I hinted at earlier, by adopting best practices such as lean manning and expanding capabilities to keep pace with heightened demand, IMCO overcomes many challenges higher-intensity conflicts pose on defence contractors.
IMCO’s pivotal role in enhancing Israel’s defence capabilities and bolstering its strength during these critical times is a source of immense pride that motivates us to succeed beyond basic survival.
IMCO operates with the utmost commitment to the highest standards of business ethics and quality while adhering to all applicable international regulations. Our business approach defines IMCO’s integrity, highlighting our consistent dedication to excellence.
ESD: What are IMCO’s plans for the rest of 2024?
YSB: IMCO foresees a year brimming with promising opportunities. There are compelling, intertwined factors underpinning IMCO’s optimism.
First, the escalating security tensions in Europe drive an accelerated pace in defence procurement processes throughout the region. As a reliable global partner, IMCO is uniquely poised to deliver on an anticipated surge in requirements. Tested by the current conflict, IMCO’s proven expertise and track record enable us to seamlessly align with a military programme buyer’s advancing needs.
Second, as a key supplier to the IDF, this distinction represents a wealth of experience gained through close collaboration with Israel’s military elite. It is a valuable source of insight we can readily use for clients around the world. They benefit from our battle-proven technologies, lessons, and, well, hardship.
Third, IMCO’s operational experience serves as a significant differentiator in today’s competitive defence-industrial landscape. As such IMCO offers a holistic approach to creating bespoke solutions for defence forces, integrators, and primes.
Fourth, Experience shows that often armed conflict forces change and progress to counter threats and overcome challenges. This is a lesson IMCO understood decades earlier – and it remains at the core of our commitment to relentlessly pursue innovations that enhance armed forces’ adaptability, capability and lethality.
As we navigate the opportunities and challenges of 2024, our R&D investment ensures our solutions are at the forefront of technological advancements.
ESD: Thank you for your valuable time, insight, and candour.
