Boaz Levy gazed at the results of the air defense provided by the Arrow missiles during Iran's two ballistic missile attacks on Israel last year and felt a sense of closure. The CEO of Israel Aerospace Industries (IAI), who had served as the project's chief engineer and head for years, realized that his life's work had saved lives and successfully intercepted hundreds of enemy missiles before they could cause disaster.
"This is a phenomenal outcome, the culmination of thirty years of technological preparation, all concentrated into just a few minutes when the Arrow 2 and Arrow 3 missiles successfully intercepted enemy missiles at altitudes beyond the atmosphere, allowing Israeli citizens to wake up the next day to a regular workday. There's no doubt that the success of the Arrow system has fostered trust in Israel's defense industries among its citizens."
On Israel's last Independence Day, Boaz Levy lit a torch at a ceremony held at Mount Herzl, in recognition of his work on the Arrow project. However, the event did not feel like a conclusion. Since the outbreak of the war, IAI has been operating on an emergency footing around the clock, which is ongoing to this day.
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"2024 was a unique, challenging year, and it was anything but routine," he said. "We all worked, and continue to work, under wartime conditions, heavily relied upon by the state, and we have to maintain operational continuity and business sustainability. We are doing this while dealing with worker shortages due to reserve duty and facing significant supply chain and transportation challenges to Israel. This complex situation led to extremely high-intensity work, with the goal of meeting the security needs of the state."
"At the same time, we also have deliverables to our international customers, which cannot be neglected. The mix of clients in both Israel's defense sector and abroad is crucial for IAI, and we must maintain it. Cooperation with foreign clients is based on innovation and manufacturing capabilities, together building technological coalitions—not just operational ones—that can yield integrated, advanced systems. Despite all these challenges, we led IAI to its best-ever business performance. The order backlog reached $25 billion, and sales are approaching $6 billion, with an exceptionally high net profit."
Were there critical decisions in times of crisis this year?
"There were more critical decisions in times of crisis that characterized 2024 than in regular moments. We had to make quick and optimal managerial decisions. From the first day of the war, we decided not to declare ‘force majeure,’ which would halt work. Instead, we continued to fulfill orders for our customers both in Israel and abroad, with constant support for them. Running a company of 15,000 employees under missile attacks requires focused action and the creation of dedicated response teams for every possible scenario. This is what we did throughout the year, focusing on those critical moments of synchronized and large-scale attacks. IAI employees took on strenuous work with a sense of mission and national pride, primarily knowing that the products we manufacture are protecting every one of us."
Tchernichovsky was right
IAI develops and manufactures systems for air, sea, land and space. In each of these domains, its systems were deployed operationally this year, achieving impressive results that enabled decision-makers in the country to make real-time decisions. IAI’s satellites, for example, orbit Earth and provide images that create an up-to-date and accurate situational picture.
"In this way, all layers involved in combat, from decision-makers approving missions to the individual soldier on the ground, are fed with accurate, real-time information," Levy said. "This was evident from the first day of the war and continues with intensive, continuous operations in collaboration with all security entities. IAI is continuously working to expand these capabilities and create an updated and optimal battlefield picture."
What type of management strategy was required this year?
"A centralized, focused management approach with high managerial attention and constant availability to employees and customers. We developed a management strategy that allows us to respond at varying speeds and according to available manpower, while supporting both our customers and our employees’ families. Many of our employees and their families were affected by the October 7 attacks, including families of hostages. We significantly increased the resources dedicated to supporting employees and their families, including providing continuous support for employees during their reserve duty and as they returned to work. We also greatly expanded the number of social workers at IAI, who support families on an ongoing basis."
What have you learned over the past year?
"I’ve learned that the impossible is possible, that there is no obstacle that cannot be overcome when you have dedicated employees. I’ve learned that the people of Israel have extraordinary capabilities, particularly their ability to absorb challenges and that despite what some may think, they know how to be disciplined when needed. I’ve learned that the younger generation surpasses previous generations in determination, audacity, and professionalism, but mostly in their love for the State of Israel and its citizens. I’ve learned that Israel’s national defense industry is a central pillar in the country’s ability to protect its citizens. The term ‘blue-and-white’ is not just a slogan, but a vital necessity. I also learned that Shaul Tchernichovsky was right: a person must believe."
Where do you see IAI in one year?
"IAI will continue to grow across all of its business lines. The aviation division will continue to meet the needs of civil aviation, including converting planes into cargo aircraft. We will continue to produce and maintain components for fighter jets. In the military divisions, there will be an increase in the use of our technologies, which are already showing results on the battlefield. IAI’s systems will provide solutions for the battlefield of the future, incorporating artificial intelligence technology and creating inter-system integration. This will provide an optimal solution for multiple, simultaneous threats across various theaters."