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

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• Big negative: people move to Adelaide as a lifestyle decision which creates a<br />

problem in recruiting particularly in s<strong>of</strong>tware and systems engineering staff.<br />

• This is not the center <strong>of</strong> commerce. The defense market is small and unprotected<br />

in Australia – have to battle the world for business.<br />

• Not enough graduates support their operations – they could employ 50 people<br />

tomorrow if they had candidates. Engineering, electronics and computer science.<br />

Aeronautical engineers are very difficult also. There needs to be a balance <strong>of</strong><br />

mature and fresh out engineers.<br />

• Can they use immigrants – additional costs, but they also have other large<br />

operations in US and Europe that need the same resources. They (competitors)<br />

like Oz engineers and want to recruit them from here because they have a broad<br />

based background. Asian students that are working here can now apply to work<br />

here (this is a change from the past).<br />

• They are working to influence the universities to produce more engineers. DoD is<br />

unable to undertake all the R&D they would like to, so they can use the Uni’s to<br />

do research and influence the curriculum. They are a single customer company in<br />

this county and are held hostage to this.<br />

• There is a culture among the youth that they want to leave here after studying.<br />

One solution might be to <strong>of</strong>fer overseas appointments for a few years. An<br />

important factor is the availability <strong>of</strong> SW and systems engineers is that they feel<br />

very secure in their job – they work on projects they want, not for “companies.”<br />

• Larger projects are long and protracted and the engineers get bored because they<br />

can’t see results <strong>of</strong> their efforts. They have lost a lot <strong>of</strong> engineers to the<br />

communications sector. Cannot even hold them even by matching competing<br />

<strong>of</strong>fers. Motorola has 450 engineers across the road.<br />

• More varieties <strong>of</strong> high tech jobs would help keep engineers here. The way to do<br />

that would be to bring big contracts here. - The submarine contract is an example.<br />

A complete facility was built out <strong>of</strong> a swamp – but this was never a company, but<br />

merely a project, so what do you do with the workforce?<br />

• Have MASSIVE peaks and troughs in industry.<br />

• They are very influenced by what the US wants to do. Example is Taiwan – would<br />

have bought submarines, so they couldn’t sell them to them because <strong>of</strong><br />

US/China. Not a technology issue, but an alliance issue.<br />

• Ball Aerospace is a joint project. Also Raytheon/Lockheed Martin for the P3 Orion<br />

project. There is a lot <strong>of</strong> original s<strong>of</strong>tware for that project. 20 people on project.<br />

• It is difficult to market back into the US market because there is a lot <strong>of</strong><br />

protectionism. They can put an item in to be evaluated, even if it is considered to<br />

be good, the US partner tends to take the largest portion <strong>of</strong> the project (lose 90%<br />

<strong>of</strong> it).<br />

• Best opportunities are middle east and southeast Asia.<br />

• Australian Industry Involvement (AII) is mandated for defence work.<br />

• Engineers grow up to be managers – they aren’t engineers anymore.<br />

• Engineering skill levels are second to none in the world, but management has a<br />

long way to go.(and contract management). Operations Mission Simulator – the<br />

challenge is to manage the program – applies to defence but is industry wide.<br />

Industry that has the best handle on management is the Civil and construction<br />

industry – could be addressed through management.<br />

• Lose sight <strong>of</strong> the fact that this is a business and we are in it to make money. 99%<br />

<strong>of</strong> all engineering projects, delivered projects are excellent, but schedule is <strong>of</strong>ten<br />

incorrect.<br />

COMMERCIAL IN CONFIDENCE<br />

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