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Non-security exporters: Unlocked
The breadth of defence and security products and services currently being exported by Australia-based firms means industries external to the defence and security industry may already provide a link in the security export chain. Exports include training and education services, flight training, aircraft spares, IT and communication products, air traffic management, uniforms and protective equipment, aircraft maintenance and modification, engine overhauls and repairs and precision manufacturing, most of which already have established export streams across various other sectors.
Although Australia also exports specific defence and security products—weapons, armoured vehicles, patrol vessels, security services, building access and perimeter security applications and border controls—goods and services in other sectors, such as emergency, rescue and health equipment, are also required and can be supplied by external industries.
Barriers: The Fortress
Bad news for SMEs: a substantial portion of the defence supply base is the hands of a few big companies like BAE Systems, Thales Australia, Boeing, Raytheon, Australian Aerospace, Spotless Group, ASC Defence Maritime Services and Austal. Some of these firms have a high degree of foreign ownership and most are defined as ‘primes’ or prime contractors. The main focus of the primes is on delivering integrated projects rather than singular products to one or more main customers, such as the Australian Defence Force (ADF) or the Defence Materiel Organisation (DMO).
Angeloglou says exporters would also benefit from extra government support. “It would help if the Australian Government got behind Australian firms by endorsing them in the market and an even greater help if Canberra bought more products and services from local companies. Believe me, it would be one hell of a reference overseas if I could say the Australian government bought security products from me.”
The Future: Reconnaissance
Defence and security exports have come to the fore since September 11, 2001 and it’s possible our defence relationship with the American market could get a whole lot stronger. If US Congress decides to give a required two-thirds majority vote to ratify a Defence Trade Cooperation treaty with Australia, originally signed in September 2007, significant opportunities could open up exporters to work cooperatively with the United States on sensitive defence technology initiatives. But any vote on the treaty may be some way off yet, as Congress becomes increasingly engaged in the lead-up to the American Presidential election.
One project that continues to excite Australia’s defence industry pundits is America’s international Joint Strike Fighter (JSF) program. In 2002, the RAAF joined eight other partner countries—the United States, Britain, Italy, the Netherlands, Turkey, Canada, Denmark, and Norway—with ‘security’ associates, Israel and Singapore, to back development of the Lockheed Martin F-35 Lightning II as a fifth-generation, stealth, multi-role fighter.
Australia was originally expected to buy around 100 aircraft to replace its Air Force FA-18C Hornets and F-111s from 2012 but, despite investing about $150 million towards the aircraft’s development, a final government decision by Canberra on buying the fighters is not expected until early next year.
In the meantime, Australian companies have grabbed hold of opportunities to export their design skills, aircraft parts and ground equipment for the multi-function jet fighter. An RAAF spokesman said the JSF program was opening doors for Australia to access capability and technology a generation ahead of other contemporary aircraft. “Australian industry [can] compete for JSF work, and participate in the development, production and through-life support phases of the program.”
While that occurs, Australia is placing some emphasis on getting other irons into defence and security fires. Significant sales of defence and security goods and services are being concluded with nations in the Middle East, the Association of South East Asian Nations (ASEAN) countries, and New Zealand.
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