Israel’s largest arms firm Elbit Systems is finally losing money at its drone engine factory near Birmingham, England.

This follows years of campaigning by Palestine Action, a group I co-founded in 2020.

Back then, Elbit’s subsidiary UAV Engines was making millions of pounds in profit with an £11m turnover.

That was until we showed up. Palestine Action has staged over 20 protests at the firm’s factory in Shenstone, blockading the gates, occupying the roof and smashing up equipment.

We did this because Elbit makes 85% of Israel’s drone fleet terrorising Gaza, including the Hermes armed drones from which even British aid workers are not safe.

And although UAV Engines claim that it produces components solely for the British army, trade licence data shows it exports drone parts to Israel. 

For decades this business, which Elbit turned from a motorbike manufacturer to an arms firm in the mid-1990s, has been consistently profitable.

But its latest accounts show the company is now in the red. From a £2.5m operating profit in 2019 before we launched, UAV Engines had a £460,000 loss by the end of 2023.

Rising security costs

The drop in profits could be due to all the extra security hired by UAV Engines to protect its Shenstone site. 

I was personally involved in Palestine Action’s first occupation of the factory. At that time, there was one security guard on shift from 6am to 6pm. 

Since then, the actions have multiplied at the site and so has the damage. In response, the factory steadily increased the amount of barbed wire, security cameras, barriers and guards. 

All that costs money.

Not only did they change the number of guards, they also upgraded their calibre. By 2022, there were six full time security guards, most of whom were ex-military. 

They wore balaclavas 24/7 and seemed to have little hesitation using disproportionate force against protestors. 

Higher security costs could be reflected in the accounts under increased “administrative expenses” of approximately £1m.

Sustained disruption

Turnover has also slumped by more than a third to £7m in the last year. This could signal fewer orders, the end of long-term contracts or difficulties fulfilling existing obligations.

The main element of our direct action strategy is to cause sustained disruption to the target, which can even cause factories to close while they are repaired. 

As the date of any protest is known only to those taking part, it’s impossible for the company to plan around the disruption. 

No doubt this leads to rescheduled deliveries, increased production time and ultimately delays in fulfilling contracts for their military customers.

You may be forgiven if you’re an online boutique for sending an order out a couple of days late, but for the defence industry the repercussions can be very costly. 

As Elbit’s CEO Martin Fausset said in a podcast in 2023, “The culture in the UK is if you’re one day late, you might as well be six months late. It’s equally unacceptable. So that understanding is something we have to be very careful with.”

Low morale

Our consistent direct action has been matched with regular pickets, blockades and disruptive marches by the local community. 

Protestors often chant “your wages are covered in Palestinian blood”, making it impossible for Elbit’s workers to avoid the wider public’s view of their deadly business. 

This probably reduces staff morale, and in turn their productivity.

Our campaigning could also have distracted the company’s leadership, forcing managers to spend time defending Elbit’s image. 

While previously they would offer no comment to the press, the firm now writes letters to the community, briefs against Palestine Action and has invited a local journalist to tour the factory.

This has made little difference to the public’s perception, but will have taken up valuable time.

Elite KL

With its falling profits and turnover, UAV Engines is on the same trajectory as a former Elbit subsidiary, Elite KL, which they sold in March. 

It made parts for Israeli military tanks, until Palestine Action intervened.

Regular roof top occupations at Elite KL’s factory across 2021-22 led to significant disruption and damages. 

One action saw the roof tiles ripped off one by one, and by the time the activists were taken down, rain began to destroy the contents inside the arms factory.

Due to the direct action against Elite KL, the company closed their production for a few months to rebuild the site with the highest security protocols. 

Fencing was built across the premises, shutters were placed on the windows and the roof was rebuilt.

The security costs reflected an increase of administrative expenses by nearly £700,000 and a 77% reduction in profits. 

Ultimately, the poor financial position led to Elbit Systems UK selling off the subsidiary. 

The new owners of the firm stopped all production of parts for Israeli tanks and instead focused on making parts for public transport. 

There’s a reason for the phrase ‘direct action gets the goods’ and that’s because it’s true.

Sacrifice

Hitting Elbit where it hurts – in their balance sheet – requires sacrifice by the activists who embark on direct action. 

Occupations are followed by arrests, court cases and sometimes, prison. 

Currently, there are sixteen Palestine Action members in jail across England and Scotland.

Among them are six who rammed a van into an Elbit site near Bristol. Once inside, they dismantled weapons, including the same model of quadcopter drones used by the Israeli military.

The action allegedly cost Elbit over £1m in damages.

And despite what you may hear in the media from pro-Israel politicians – like former trade secretary Kemi Badenoch who recently met Elbit in Tel Aviv – the public often supports what we do.

Last month, a jury in Bradford refused to convict four of our group for causing hundreds of thousands of pounds worth of damage to an arms factory.

Many, including myself, choose to embrace the sacrifice we make towards Palestinian liberation.

After all, it pales in comparison to the consequences Elbit’s weaponry has for the Palestinian people.

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