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 25 KEYS TO DEVELOPING AUSTRALIAN SOVEREIGN INDUSTRY CAPABILITY A dvanced electronics manufacturer, REDARC Electronics made the strategic decision to enter the Australian and global defence market in 2015 and in 2019 established a new entity, REDARC Defence Systems. Growing our business in the defence market has seen REDARC supply battery monitoring and power management solutions to defence platforms globally. Our capabilities in innovation and R&D coupled with our advanced manufacturing and testing facilities position us to support spe- cific defence requirements. We believe in the power of partnerships and how they contribute to Australian Sovereign Industry Capability (SIC). We have first-hand experience working with local SME’s on successful collabora- tions. This Includes recent work with FormCut and IntelliParticle to deliver the REDARC Thermal Signature Enhancement Kits (RTSEK) to Army, and then subsequently building on this thermal technology with GaardTech Targets to meet Army’s request for Multi Aspect Threat Emulation Systems (MATES). We also see partnering with academia and primes as an investment into SIC. Partnerships be- tween educational institutions, industry, and government are contributing to the future of the sector. An example is the recent industry collaboration between UniSA, REDARC and Raytheon which sought to improve detection thresholds of navigational radars for naval vessels. This new technology could potentially be applied across the Royal Australian Navy Fleet. Aligning ourselves with major projects that support the growth of advanced manufacturing and connect sectors of strategic importance, will ultimately help to meet workforce demand for advanced apprentices. REDARC also offers student placements and sponsors STEM related programs. The development of Sovereign Industry Capability is critical to the national security of Australia. REDARC see the following key aspects that can contribute to developing SIC. Upkeep and upgrade technology in Australi a We believe that with enough resident IP in Australia to enable capability transfer, we can strengthen our sovereign capability. If a certain technol- ogy is becoming obsolete and needs to be updated to suit an Australian project, then a local solution is a logical first option. Where a system, including software, needs to be changed or upgraded in-country then the capability to test, validate and certify the build should ideally occur in Australia. Share our knowledge of Sovereign Industrial Capability Priorities (SICP ) During the local development of solutions, developers ought to consider any applications or implications that the development may have on future programs. By sharing our information and knowledge, future programs could potentially adopt or use a similar solution across multiple platforms. This could offer benefits such as streamlining the supply chain and decreasing costs by utilising developments across multiple plat- forms and projects. Maximise Australian content Involving Australian design and manufacturing from the start of a new program would see that the Australian content is effectively maximised. There are two key issues challenging the viability of manufacturing in Australia. Firstly, there is a relatively low number of Australian platforms and so the cost of tooling can often outweigh the cost to manufacture. Secondly, hardware designs that rely on imported materials require large MOQ or designs and complex proprietary processes. All cause significant issues in achieving a viable build in Australia approach. One way to make the defence industry viable is to level the playing field. This can be achieved by deciding on what is sovereign and defining it before contract signature, and by developing enforceable conditions in every defence contract. If Australian content is to be valued, we believe that project milestones should be publicly reported and enforceable penalties for failure to meet the minimum requirements. This level of trans- parency and accountability will ultimately give the Australian Industry more confidence in the process. It is not about building in Australia at all costs, but we do believe that stating a minimum requirement for Australian content at the start of a project is necessary to support Australian SME’s and sustain the industry. Secure and sustain Australian Sovereign Industrial Capability The Sovereign Industrial Capability must be sustainable in Australia, both during acquisition and sustainment of various projects, in some cases Defence may need to consider the Ninth Fundamental Input Capability and assess how build schedules of major projects such as ships and submarines are aligned, or acquire capabilities across platforms so that workforce skills are maintained at a high level . Mike Hartas is the General Manager, Defence Sales at REDARC Defence Systems, since 2017. He is a veteran who is passionate about local industry and ensuring the Australian warfighter is the most capable in the world. Mike Hartas General Manager, Defence Sales REDARC Defence Systems