Australian + New Zealand Defence Directory 20/21

AUSTRALIAN + NEW ZEALAND DEFENCE DIRECTORY 2020/21 SOVEREIGN INDUSTRY CAPABILITY EDITORIALS www. d e f e n c e . d i r e c t o r y 15 SERIOUS ABOUT SOVEREIGN INDUSTRY CAPABILITY T he COVID-19 crisis has inflicted a major financial hit on most Australian industry sectors. The defence industry is an exception. The Department of Defence hasn’t altered or slowed its plans to spend; in fact, it’s accelerated some programs to keep cash flowing through the industry. Over the next 20 years Defence will spend over $450 billion buying new ships, submarines, aircraft and armoured vehicles and all their weapons and equipment; as well as the continued maintenance and upgrades along the way. These acquisition and sustainment projects represent significant opportunities to build Sov- ereign Industry Capability (SIC) and highlight opportunities for Australian industry to partner with the global Primes to help deliver them. The Australian Government and the Australian Defence Force (ADF) both recognise SIC and Australian Industry Capability (AIC) as important (industry has been defined as a Fundamental Input to Capability); hence the requirement for all companies awarded Defence contracts over the value of $20m to develop an AIC plan detail- ing how they will use Australian industry in their contract delivery. The Government is currently reviewing how best to manage and audit the AIC plans. Government, the ADF and Primes are acutely aware of the need to develop and maintain Sovereign Industrial Capability to secure the supply chains of current, and new, Defence platforms and equipment. ADA-Vic will continue to advocate on behalf of SMEs in the areas of SIC and AIC. The Australian Defence Alliance Victoria (ADA-Vic) helps more than 700 companies, advocating for its members, the majority of whom are Small and Medium Enterprises, or SMEs, to get bet- ter access to these opportunities. Our aim is to enable SMEs do better business with Defence; we do this by providing the latest information on current events and policies, connecting them with business opportunities or partners through networking events and directive support and advocating on their behalf. A stronger sovereign industry base makes the ADF stronger; it also strengthens the economy because the R&D behind it and the resulting growth generate a massive industrial and economic payoff. ADA-Vic contributes to this by bringing Victorian companies and research es- tablishments closer to customers and end-users. Engagement and accessibility are vital: innovators and suppliers need to understand the needs and operating environment of their customers; and those customers need to understand the difference local industry and innovation can make. Cash and time-poor SMEs haven’t got the resources to travel constantly, to gather market intelligence and pitch to potential customers and industry partners. ADA-Vic works for them by arranging industry networking events and Defence briefings (through the VDA) on specific projects. We organise stand-alone meetings and regular networking events; we also publish a weekly newsletter. And we help steer members towards the right people in Defence, help them navigate complex topics such as exports and security clearances and, up at the sharp end, advise on preparing tenders. It’s all about market knowledge and intelligence - and engagement. When we speak to the Victorian and Commonwealth governments, our voice is heard because we’re closely engaged with them. We’re a two-way communications channel: strong advocates for SME-friendly policy to Defence, to the Primes and to the Ministers for Defence and Defence Industry. During the COVID-19 crisis our advocacy has helped ensure that Defence paid some 65,000 invoices worth $3.1 billion, within less than 12 days – about 70% of those invoices were submitted by SMEs. And we’re a conduit for insight and market intelligence back to our members, direct from our own briefings and meetings with officials and Ministers in Melbourne and Canberra. We represent an industry sector that’s full of agile, highly skilled players: the COVID-19 crisis demonstrated this when some of our members evolved rapidly to help design and manufacture world-class PPE for first responders and patients. They’re the basis of a dependable sover- eign industry capability. Sovereign Industry Capability isn’t just a buzz-phrase – the ability to do important things entirely in-country is strategically vital, as the CO- VID-19 crisis proved. But Victoria’s smart, high-technology SMEs can also demonstrate they’re competitive and low-risk. This is ADA-Vic’s constant message to Defence, to the prime contractors looking for cost-effective supply chain partners, to potential export customers, and to governments who’ll benefit from increased industry competitiveness, employment and taxes. According to a leading Defence news report in 2019, Australia’s Top 20 SMEs alone turned over a combined $912 million; defence SMEs as a whole are estimated to turn over close to $2 billion. Over the past couple of months, the Defence industry has been proven to be recession proof again. Join the Defence Industry and start doing better business! Sean Farrell CEO Australian Defence Alliance - Vic