“Quicklook” Assessment of Greater Adelaide's Assets & Challenges ...

Overview
Business opportunities are lacking. Australia defense industry does not have a large
customer base overseas. Selling to the navy is different than other commercial
applications. They can’t really go out and sell submarines to other countries. Example:
the US would not buy from other countries where they could get cut off. They form
alliances but don’t want to be beholden to other country’s policies. ASC does, though,
work for the Thai and for the HK police on patrol boat projects.
It seems to be some linkage coming between US and Australia on the horizon (they
have been talking about a joint venture).
The government recently bought ASC. The government has told ASC that they will be
restructured and then sold. They are in a state of limbo right now, not knowing what their
future is and needing to hold on to their knowledge base.
Issue: There will be an issue in retaining skills, they are one half to two-thirds the size
they were a year ago and decreasing. If no work comes in, then they can’t keep people
and the knowledge base. The combat system is complex. They are currently in danger
of losing key personnel and knowledge.
The Premier has to fix the problem of the lack of a plan. They need to have a plan to
maintain the fleet and improve the software systems. There is one place in West
Australia that could take up the expertise they have built in SA. SA needs a marketing
approach to keep business here. Aligning with a larger company could help them to get
funding.
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