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Pacific 2012<br />
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January/February 2012 SA <strong>Defence</strong> Business CONTENTS<br />
13<br />
6 CHAIRPERSON AND CEO INTRODUCTION<br />
10 INDUSTRY NEWS<br />
13 FEATURE<br />
A look at whether the AUS-US <strong>Defence</strong> Trade Cooperation<br />
Treaty will bring new opportunities for<br />
South Australia’s defence industry<br />
16 FEATURE<br />
The case for the home-grown future submarine<br />
18 PROFILE<br />
South Australian Minister for <strong>Defence</strong> Industries<br />
Jack Snelling gives his take on the future of South<br />
Australia’s defence industry<br />
21 PROJECT UPDATE<br />
The latest on South Australia’s Air Warfare<br />
Destroyer project<br />
DEFENCE TEAMING CENTRE INC.<br />
The <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> is South Australia’s<br />
defence industry association.<br />
Innovation House West<br />
First Avenue<br />
Technology Park<br />
Mawson Lakes SA 5095<br />
08 8260 8159<br />
EDITOR<br />
Holly Caruso<br />
<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />
EDITORIAL COMMITTEE<br />
Courtney McGrath BAE Systems Australia<br />
Steve Hickman Daronmont Technologies<br />
David Searles <strong>Defence</strong> Systems Innovation <strong>Centre</strong><br />
Stuart Hodge <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />
Mark Williams Hughes PR<br />
Helen Rogers Solstice Media<br />
Paula Brinkworth Solstice Media<br />
Chris Field Wartsila<br />
SA <strong>Defence</strong> Business is published by<br />
Solstice Media<br />
4 Cinema Place<br />
(off Vaughan Place)<br />
Adelaide SA 5000<br />
08 8224 1600<br />
Circulation to 1400 nationally<br />
16 18 30 37 51<br />
22 INDUSTRY<br />
A guide to who defence industry should seek for<br />
support for business growth<br />
25 SPECIAL FEATURE<br />
Pacifi c 2012: who’s exhibiting at this year’s event in<br />
Sydney in January<br />
34 INDUSTRY<br />
Pricewaterhouse Coopers explain the benefi t of the<br />
new Research and Development Tax <strong>Inc</strong>entive<br />
37 YOUNG AMBASS<strong>AD</strong>OR<br />
An interview with Sumen Rai, <strong>Defence</strong> SA market<br />
analyst<br />
38 SKILLS<br />
<strong>Defence</strong> industry engineers of the future and<br />
emerging leaders<br />
PUBLISHER<br />
Paul Hamra<br />
PRODUCTION EDITOR<br />
Paula Brinkworth<br />
EDITORIAL<br />
Grant Smyth<br />
DESIGNER<br />
Raymond Capozzi<br />
PHOTOGRAPHER<br />
Nat Rogers<br />
PRINTING<br />
Lane Print and Post<br />
SUBSCRIPTION ENQUIRIES<br />
08 8224 1600<br />
<strong>AD</strong>VERTISING ENQUIRIES<br />
Helen Rogers<br />
advertising@solsticemedia.com.au<br />
08 8224 1611<br />
FREQUENCY<br />
Bi-monthly<br />
COVER<br />
Gordon Fawcett, Craig Gustard, Norman Docherty and<br />
Malcolm McMillan of ASC on the Collins class submarine<br />
at Techport Australia<br />
05<br />
41 A DAY IN THE LIFE OF<br />
ASC production technician Paul Minerds reveals what<br />
it’s like to work on a Collins class submarine<br />
44 MEMBER NEWS<br />
46 EVENTS<br />
49 MEMBER LISTING<br />
51 OUT OF HOURS<br />
Ingenia’s Business Development Manager Ian Biggs<br />
has a passion for Vespa scooters<br />
Editor’s Note<br />
It has been an absolute<br />
privilege working with<br />
Solstice Media and the<br />
team at the <strong>Defence</strong><br />
<strong>Teaming</strong> <strong>Centre</strong> (DTC)<br />
to develop the SA<br />
<strong>Defence</strong> Business<br />
publication from a<br />
concept to the highly<br />
regarded publication it<br />
has become over the<br />
last two and a half years. As I depart the DTC to<br />
a new role within the defence industry, I welcome<br />
the DTC’s Membership Development Manager<br />
Rita Emanuele to the helm as Editor of SA <strong>Defence</strong><br />
Business from issue 16. I am certain Rita will bring to<br />
the publication fresh ideas and continue to develop<br />
the value of the publication for defence industry.<br />
Holly Caruso<br />
Editor, SA <strong>Defence</strong> Business<br />
<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />
DTC CHARITIES OF CHOICE
06 CHAIRPERSON & CEO INTRODUCTION<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
Looking ahead Need for greater support<br />
A word from chairperson Jim Whalley<br />
Welcome to another issue of SA <strong>Defence</strong> Business. I write this as we are<br />
approaching the end of 2011 and I know you will all be reading it with Christmas<br />
and New Years behind you and hopefully you are re-energised for the year ahead.<br />
2011 has been a tough year for many in the defence industry and there have<br />
been some major disappointments in South Australia. In particular, these include<br />
the loss of Land 121 from the State and continued delays to the start of the future<br />
submarine project.<br />
The DTC is also facing some uncertainty over its future as the SA State<br />
Government funding arrangement concludes at the end of the current fi nancial<br />
year. The South Australian Government has been a great supporter of <strong>Defence</strong><br />
and defence industry over the last decade and I sincerely hope we are not seeing a<br />
change in that support. At risk is much of the work that has been done to make<br />
SA the “<strong>Defence</strong> State”.<br />
The DTC CEO Chris Burns and myself have recently met with Government<br />
and hope to again late in January. We are hopeful that the new Minister for<br />
<strong>Defence</strong> Industries, Jack Snelling, will continue to support the DTC and defence<br />
industry as a keystone to the State’s economic development and support of<br />
technology based industry in South Australia. I look forward to reporting a<br />
positive outcome in the next issue of the SA <strong>Defence</strong> Business magazine.<br />
"The South Australian Government has<br />
been a great supporter of <strong>Defence</strong> and<br />
defence industry over the last decade<br />
and I sincerely hope we are not seeing<br />
a change in that support"<br />
On a more positive note, our very successful SA <strong>Defence</strong> Industry Leadership<br />
Program (S<strong>AD</strong>ILP) will run again in 2012. I strongly encourage all members to<br />
consider participating or nominating a participant by the end of February 2012<br />
cut-off. Dependent on funding, we are also hoping to continue running our<br />
Women infl uencing <strong>Defence</strong> and Resources Industries (WiDRI) program.<br />
Please refer to the DTC website for more information.<br />
In the meantime I hope you have all had a good break and are looking<br />
forward to a more prosperous 2012.<br />
A word from CEO Chris Burns<br />
As we kick-off 2012, many members are feeling the impact of the decline<br />
in <strong>Defence</strong> investment in Australia’s defence industry. In our Annual Report<br />
I quoted Tennyson’s ‘Charge of the Light Brigade’ describing the trough in<br />
<strong>Defence</strong> expenditure as the ‘Valley of Death’. In particular, I noted the stanza<br />
“theirs not to make reply, theirs not to reason why, theirs but to do and<br />
die”. The Federal Government’s fi scal strategy of imposing saving regimes<br />
and reviews on <strong>Defence</strong> and delaying project approvals in order to achieve<br />
a surplus are having a signifi cant impact on our defence industry in terms of<br />
work fl ow, generation of revenue and retention of our skilled labour. Inevitably,<br />
this must impact on <strong>Defence</strong>’s capacity to generate the capabilities required by<br />
government to assure our nation’s security. Unfortunately, like Lord Cardigan’s<br />
cavalry at the Battle of Balaclava, our military cannot dare to reply and the<br />
defence industry is fearful of retribution if it questions why.<br />
Lost in the hyperbole surrounding all the <strong>Defence</strong> releases announced<br />
simultaneously with the Cabinet reshuffl e in mid-December 2011, was the<br />
release of the preliminary report by the Senate Inquiry into Procurement<br />
Procedures for <strong>Defence</strong> Capital Projects, the Inquiry representing industry’s<br />
opportunity to highlight its concerns with <strong>Defence</strong> procurement. The DTC made<br />
signifi cant written and verbal submissions to this Inquiry. Importantly, one of the<br />
major concerns identifi ed by the Inquiry is that within <strong>Defence</strong> there is “limited<br />
strategic consideration of Australia’s defence industry including the impact of<br />
off-the-shelf purchases, interconnection between industry viability and <strong>AD</strong>F<br />
capability, and relationship with <strong>Defence</strong> as sole customer”.<br />
In the same swath of announcements from the Government, our <strong>Defence</strong><br />
Ministers claimed a record for approvals of <strong>Defence</strong> capability projects in 2011. The<br />
fact is that the majority of the expenditure was for foreign off-the shelf equipment<br />
like C17s, Chinook helicopters and amphibious vessels; none of which will involve<br />
any signifi cant engagement or investment in Australia’s defence industry. Very few<br />
of these project approvals helped industry climb out of the ‘Valley of Death’.<br />
My great concern is that some in our defence industry may not survive<br />
the ride through the valley to be ready to reap the benefi t of the quantum of<br />
work fl owing from the forecast increase in <strong>Defence</strong> expenditure from 2014<br />
on. Inevitably this will force <strong>Defence</strong> to look offshore to replace the capabilities<br />
it has been denied. This will see Australian taxpayer’s dollars and jobs being<br />
exported to foreign defence industries. We will be even more benevolent on<br />
other nations to maintain our defence capabilities and we will further ‘dumbdown’<br />
our nation by denying its defence industry the opportunity to innovate<br />
and grow. This year we need the Government to support the Australian<br />
defence industry, to make decisions that benefi t our indigenous capability and<br />
provide a clear path out of the valley in which industry currently resides.<br />
A copy of the Preliminary Report of the Senate Inquiry into Procurement<br />
Procedures for <strong>Defence</strong> Capital Projects is available on the DTC website.<br />
The opportunity also exists for further submissions to the Inquiry. The DTC<br />
will happily accept members’ input and consolidate them into a DTC fi nal<br />
submission before mid-February 2012. Let’s hope the fi nal recommendations of<br />
the Senate Inquiry do not fall on deaf ears.
SOFTWARE SOLUTIONS UPCOMING COURSES<br />
The Software Engineering Institute is bringing 25 years of experience to Australia<br />
The Software Engineering Institute is bringing<br />
its quarter century of experience to Australia.<br />
The SEI is a global leader in research and<br />
development related to software, system design,<br />
software acquisition, cybersecurity, and risk<br />
management.<br />
With a 25-year history of working in close<br />
collaboration with the U.S. Department of<br />
Defense, government, industry, and academia,<br />
the SEI aims to continually improve softwareintensive<br />
systems through research, education,<br />
and consulting.<br />
In addition to the Department of Defense,<br />
the SEI’s global partners and clients include<br />
the U.S. Department of Homeland Security,<br />
civil government agencies, defence contractors,<br />
software development organisations, and<br />
financial services companies, among others.<br />
The SEI launched its Asia-Pacific operations<br />
at Carnegie Mellon University – Australia’s<br />
Adelaide campus in 2011.<br />
From this location the SEI will work with<br />
organisations throughout Australia and the<br />
broader Asia-Pacific community on software<br />
engineering, process improvement and network<br />
security.<br />
The SEI will also offer advanced courses and<br />
certifications, created and taught by recognised<br />
experts with practical experience in the field, to<br />
help you address today’s challenges.<br />
The courses feature hands-on tasks and<br />
real-world scenarios to help students learn<br />
CRICOS Provider Number: 02696B<br />
or improve the skills they need to create and<br />
maintain software, systems, and organisations<br />
that are efficient, secure and reliable.<br />
SEI Director and Chief Executive Officer,<br />
Dr Paul Nielsen, says the Institute is looking<br />
forward to working collaboratively with<br />
Australian partners and colleagues to address<br />
the challenges faced by the global software<br />
community.<br />
“Corporations and governments worldwide<br />
spend an estimated $1 trillion per year on<br />
IT projects, but because software design,<br />
development and integration are often plagued<br />
by performance problems, only about 35 per<br />
cent of those projects will be completed on time,<br />
on budget, and with all the specified functions,”<br />
Dr Nielsen said.<br />
“The SEI works to build capabilities in<br />
acquisition, software development and process<br />
management to help organisations avoid<br />
problems with IT project delays and failures,” he<br />
said.<br />
“The SEI also specialises in cybersecurity and<br />
risk—with federal government agencies in the<br />
United States reporting more than 5,600 cases<br />
of computer attacks, intrusions and plantings of<br />
malicious code against them every year, there is<br />
great demand for ways to assure system security,<br />
protect against internal and external threats,<br />
educate employees about security best practices<br />
and build software with fewer defects and<br />
vulnerabilities.”<br />
CERT Insider Threat Workshop<br />
17-18 April 2012<br />
The workshop consists of presentations<br />
and interactive exercises in which<br />
participants are led through portions<br />
of the CERT insider threat assessment<br />
instrument, which was developed to enable<br />
organisations to assess their insider threat<br />
risk. The assessment addresses technical,<br />
organisational, personnel, security, and<br />
process issues. The purpose of the exercises<br />
is to assist participants in assessing their<br />
own organisation’s vulnerability to insider<br />
threat in specific areas of concern. Our goal<br />
is that participants leave the workshop with<br />
actionable steps that they can take to better<br />
manage the risk of insider threat in their<br />
organisation.<br />
Introduction to CERT Resilience<br />
Management Model<br />
15-17 May 2012<br />
This course introduces a model-based<br />
process improvement approach to managing<br />
operational resilience using the CERT®<br />
Resilience Management Model (CERT-<br />
RMM) v1.1. The course is composed of<br />
lectures and class exercises with ample<br />
opportunity for participant questions<br />
and discussions. After attending the<br />
course, participants will understand the<br />
fundamental concepts of operational<br />
resilience and operational resilience<br />
management, have a working knowledge of<br />
CERT-RMM process areas, and be able to<br />
begin process improvement efforts in their<br />
organisation. Using CERT-RMM as a guide,<br />
participants will also be able to evaluate their<br />
current security, business continuity, and<br />
IT operations practices and make effective<br />
decisions about which practices are working<br />
and which need to be replaced.<br />
For more information or to<br />
register visit our website at<br />
www.cmu.edu.au/SEI<br />
or send us an email at<br />
admissions@cmu.edu.au
INDUSTRY NEWS<br />
08 January/February 2012 SA <strong>Defence</strong> Business<br />
Ministerial reshuffle affects <strong>Defence</strong><br />
THE recent cabinet reshuffl e by the Gillard<br />
Government has brought about a change in the<br />
<strong>Defence</strong> ministerial team.<br />
The previous Minister for <strong>Defence</strong> Materiel,<br />
the Hon. Jason Clare, has been moved to<br />
the ministry of Home Affairs and Justice. His<br />
replacement in the role will be Senator Kim Carr,<br />
who recently held the position of Minister of Industry,<br />
Innovation, Science and Research. His current role<br />
also includes the Manufacturing portfolio. Senator<br />
Carr will not form part of the cabinet.<br />
Another new appointment to the<br />
<strong>Defence</strong> ministerial team is Dr Mike Kelly MP as<br />
Parliamentary Secretary for <strong>Defence</strong>. Dr Kelly<br />
will be the second parliamentary secretary for<br />
<strong>Defence</strong>, alongside Senator David Feeney. Dr<br />
Kelly’s responsibilities will be to oversee the<br />
drawdown and eventual transition to local forces<br />
in Afghanistan.<br />
Following the reshuffl e, the current <strong>Defence</strong><br />
ministerial team consists of:<br />
The Hon. Stephen Smith MP - Minister for<br />
<strong>Defence</strong><br />
The Hon. Warren Snowdon MP - Minister for<br />
Veterans’ Affairs, Minister for <strong>Defence</strong><br />
Science and Personnel, Minister Assisting the<br />
Prime Minister on the Centenary of Anzac<br />
Senator the Hon. Kim Carr - Minister for<br />
<strong>Defence</strong> Materiel, Minister for Manufacturing<br />
The Hon. Dr Mike Kelly AM - Parliamentary<br />
Secretary for <strong>Defence</strong><br />
Senator the Hon. David Feeney -<br />
Parliamentary Secretary for <strong>Defence</strong><br />
State Opposition appoints new<br />
Shadow Cabinet<br />
The new Minister<br />
for <strong>Defence</strong><br />
Materiel, Senator<br />
Kim Carr<br />
THE State Opposition has reorganised its Shadow<br />
Cabinet, appointing a new Shadow Minister<br />
for <strong>Defence</strong> Industries, Steven Marshall. Mr<br />
Marshall is the Member for Norwood and has<br />
gained several portfolios including Small Business,<br />
Industry and Trade, Environment, Climate Change<br />
and Sustainability, <strong>Defence</strong> Industries and Science<br />
and Information Economy. Mr Marshall said that<br />
he was looking forward to his new roles.<br />
The previous Shadow Minister for <strong>Defence</strong><br />
Industries, Martin Hamilton-Smith, has been<br />
appointed as Shadow Minister for Health, Ageing,<br />
Mental Health and Substance Abuse.<br />
Land 121 phases approved<br />
THE Federal Government has approved several<br />
phases of the long-running Land 121 program.<br />
Rheinmetall MAN Military Vehicles<br />
Australia has been down-selected as preferred<br />
tenderer for Land 121 Phase 3B (Protected and<br />
Unprotected Medium and Heavy Vehicles). The<br />
initial negotiations will be for up to 2,700 vehicles,<br />
drawn from MAN’s HX series of vehicles. MAN had<br />
been in heavy competition with Mercedes Benz<br />
and Thales for the project.<br />
Land 121 Phase 3B has been a protracted<br />
process, initially being awarded in 2008 before<br />
negotiations broke down. The current award will<br />
bring the project off the projects of concern list.<br />
Local suppliers will construct the bodies and modules<br />
for the trucks; trailers for the vehicles will be<br />
manufactured by Haulmark Trailers in Brisbane.<br />
The Thales Hawkei, selected as the Made and Supported in Australia option for Land 121 Phase 4<br />
<strong>Defence</strong> Officers in Business group<br />
launched<br />
THE <strong>Defence</strong> Offi cers in Business Group was<br />
offi cially launched by General Peter Cosgrove in<br />
early November 2011, with more than 300 people<br />
attending the simultaneous launch in Brisbane,<br />
Sydney, Adelaide, Melbourne and Canberra.<br />
The organisation is intended to be a business<br />
community assisting organisations and people to<br />
leverage <strong>Defence</strong> expertise through networking,<br />
professional development and matching services<br />
aimed at ex-service personnel that have moved<br />
into commercial industry.<br />
The <strong>Defence</strong> Offi cers in Business network<br />
allows both individual memberships and corporate<br />
memberships, with over 1200 individual members<br />
already signed up. The group will be organising<br />
networking events and defence industry specifi c<br />
events in the major capital cities and will also be<br />
facilitating recruitment and targeted advertising<br />
through its online social network.<br />
For more information about the <strong>Defence</strong><br />
Offi cers in Business organisation, go to<br />
www.defence-offi cers-in-business.com/<br />
The project is expected to cost more than<br />
originally budgeted for in 2007, extra funds will<br />
come from surplus funds from previous project<br />
phases and the cancellation of the second stage of<br />
the ASLAV enhancement program.<br />
Land 121 Phase 4 (Protected Mobility<br />
Vehicle-Light) has also reached a decision, with<br />
the Bendigo-based Thales “Hawkei” vehicle being<br />
selected as the Made and Supported in Australia<br />
option for the project. The Thales vehicle had been<br />
in competition with the Force Protection “Ocelot”<br />
and General Dynamics Land Systems Australia<br />
“Eagle” for the contract.<br />
The Thales vehicle will be assessed against<br />
the outcome of the Joint Light Tactical Vehicle<br />
program and a possible ‘Market Available’ option,<br />
with a decision to be made in 2015.<br />
AIC Plans to be made public<br />
THE Federal Government has announced more<br />
changes to the way that Australian Industry Content<br />
Plans (AICPs) are governed for future projects.<br />
Starting from January 1, 2012 Australian<br />
Industry Content Plans for <strong>Defence</strong> Projects are<br />
now publicly released, ensuring that industry has<br />
the opportunity to see exactly where opportunities<br />
on major projects lie. This change is the latest<br />
reform in a series that were announced in 2011,<br />
which included lowering the threshold for<br />
mandatory AICPs to $20 million and introducing<br />
enforceable clauses on AICPs into the conditions<br />
of tender.<br />
Announcing the reforms, former Minister for<br />
<strong>Defence</strong> Materiel Jason Clare said that many SMEs<br />
and industry groups had asked for the reform.<br />
“This is the next step. It is a common-sense<br />
idea,” Mr Clare said.
January/February 2012 SA <strong>Defence</strong> Business INDUSTRY NEWS 09<br />
Army announces major restructure<br />
THE <strong>Defence</strong> Ministers and the Chief of Army<br />
offi cially announced the release of Plan BEERSHEBA,<br />
a major restructure of the Australian Army.<br />
The long-awaited plan, which had been<br />
previously discussed at the Land Environment<br />
Working Group, will see the amalgamation<br />
of forces in to several ‘Multi-role Manoeuvre’<br />
brigades, which will rotate through a 36-month<br />
force generation cycle. The Plan also calls for the<br />
dedication of the 2nd battalion (2RAR) to form the<br />
core of an amphibious force, designed to operate<br />
regionally in disaster relief and humanitarian<br />
operations. The new force structure is designed to<br />
increase inter-operability with the other services, in<br />
particular with the upcoming Landing Helicopter<br />
Dock ships.<br />
Chief of Army Lieutenant General Morrison<br />
said: “Our modern Army is moving into the future<br />
with a new perspective and a smarter way of<br />
doing business and delivering capability within the<br />
resources we have.”<br />
Plan BEERSHEBA will ensure that the Army<br />
can continue to contribute forces to operations,<br />
including Afghanistan, as well as successfully<br />
transition to a force that maintains high levels of<br />
readiness to respond to the range of Australia’s<br />
<strong>Defence</strong> needs in the future.”<br />
Cultana growing five times<br />
THE Parliamentary Secretary for <strong>Defence</strong>, Senator<br />
David Feeney, has met with pastoralists near Whyalla<br />
in advance of the compulsory acquisition of land<br />
for the Cultana base expansion. The base, located<br />
between Whyalla and Port Augusta in South<br />
Australia, will be expanded to fi ve times its size in<br />
the near future.<br />
Senator Feeney said the project was<br />
progressing well, with agreement being reached<br />
with a native title claimant. The Senator also said<br />
permission had been sought to begin the acquisition<br />
process from the relevant Federal Ministers.<br />
“The expansion of Cultana will bring<br />
more <strong>Defence</strong> jobs to South Australia,” Senator<br />
Feeney said.<br />
“Not only will it generate short-term<br />
employment during the construction phase, but<br />
increased use of the training area will have a positive<br />
economic impact on local communities.”<br />
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Leopard Tanks conducting a live firing at Cultana.<br />
(Photo: Australian Department of <strong>Defence</strong>)<br />
Projects no longer of concern<br />
THE Government has removed an additional three<br />
<strong>Defence</strong> projects from the projects of concern list in<br />
November/December 2011, cutting the list in half<br />
since the start of 2011.<br />
The three projects that were removed recently<br />
are Land 121 Phase 3B – Overlander replacement<br />
fi eld vehicles, trailers and modules (Medium Heavy<br />
class); AIR 5418 Phase 1 – Joint Air-to-Surface<br />
Standoff Missile (JASSM); and JOINT 129 Phase 2 –<br />
Tactical Unmanned Aerial Vehicles, all of which had<br />
been on the list for over 12 months. Three projects<br />
were removed from the list earlier in 2011.<br />
Six projects remain on the projects of concern<br />
list, including the Collins Class sustainment and the<br />
MRH-90 Helicopter project.<br />
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10 INDUSTRY NEWS<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
A record year of <strong>Defence</strong> Approvals<br />
THE <strong>Defence</strong> Minister Stephen Smith and the former<br />
Minister for <strong>Defence</strong> Materiel Jason Clare announced<br />
in December 2011 that it had been a record year<br />
for <strong>Defence</strong> project approvals, with 46 projects<br />
undergoing fi rst or second pass approval, plus other<br />
approvals. While this is to be commended, 15 of these<br />
approvals were in the November-December 2011<br />
period. With this late rush it is understandable if some<br />
approvals were missed by industry, so it’s worth going<br />
through the fi nal approval list to see what exactly the<br />
Government has recently announced.<br />
Air projects<br />
The Government approved four major aerospace<br />
projects in November and December 2011. First<br />
pass approval was given to AIR 5431 (Air Traffi c<br />
Management) and AIR 5438 (Lead-in Fighter<br />
Bushmasters fitted with SPARK mine detectors are one of the many projects recently given approval<br />
Capability Assurance Program). Air 5431 will provide<br />
$6.9 million for development of a deployable air<br />
traffi c management system, including surveillance<br />
radars and air traffi c control. The second pass will<br />
occur in 2013/14 and be worth $300-500 million.<br />
Air 5438 will develop options and risk mitigation<br />
strategies for aircrew working on current and future<br />
aircraft, and will be worth $100-500 million at<br />
second pass in 2013-14.<br />
AIR 9000 Phase 5D, approved at second<br />
pass, will acquire two more CH-47D Chinooks as a<br />
replacement for one aircraft lost in Afghanistan. The<br />
purchase will be a direct purchase from the US. Air<br />
7000 Phase 2B received intermediate pass approval<br />
for continued development of the Maritime Patrol<br />
Aircraft Replacement, likely to be the US Navy’s P-8<br />
Orion project.<br />
Land Projects<br />
Four major projects in the land space were announced<br />
in November and December 2011. Of these four<br />
announcements, three were part of the Project<br />
Overlander/LAND 121 suite of announcements,<br />
including the purchase of Heavy Trucks, the selection<br />
of a Made and Supported in Australia option (the<br />
Thales Hawkei) for the Light Protected Mobility<br />
Vehicles and the bringing forward of the decision<br />
on the trailers for both vehicle classes. The other<br />
announcement was second pass approval for LAND<br />
17 Phase 1B, which will purchase approximately<br />
$90million worth of artillery Digital Terminal Control<br />
systems from Rockwell Collins.<br />
Sea Projects<br />
The major maritime announcement was the approval<br />
of SEA 1448, the ANZAC Anti-Ship Missile <strong>Defence</strong><br />
Project. Following successful tests on the HMAS Perth,<br />
Saab Systems and CEA Technologies will work with<br />
BAE Systems Australia to upgrade the remaining<br />
seven ships in the ANZAC class with SAAB’s latest 9LV<br />
combat management system. The new system will<br />
integrate with CEA’s Phased Array Radar.<br />
Joint Projects<br />
Several joint projects were also approved in the<br />
November/December 2011 period. First pass approval<br />
was given to Joint Project (JP) 3024, the upgrade of<br />
the Woomera Test Range. The upgrade will improve<br />
the range’s command, control, safety and data<br />
acquisition systems, and will undergo second pass<br />
approval in the next 12-24 months. JP 2072 Phase 2A,<br />
the purchase of 11,000 radios, was awarded to Harris<br />
Corporation in late November and will replace existing<br />
analogue equipment. JP 154, a Counter IED system,<br />
will be fi lled using a combination of HUSKY vehicles<br />
purchased from the US and Bushmasters fi tted with<br />
SPARK mine rollers, and will cost about $70 million.<br />
Finally, the Government has released around $70<br />
million to allow completion of JP 2070 Phase 2, the<br />
replacement of Lightweight Anti-Submarine Torpedoes.<br />
The project, which has been a project of concern since<br />
2008, will allow the completion of integration activities<br />
on the Adelaide and ANZAC class ships.<br />
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January/February 2012 SA <strong>Defence</strong> Business FEATURE<br />
On the horizon...<br />
Will the AUS−US <strong>Defence</strong> Trade<br />
Cooperation Treaty bring new<br />
opportunities?<br />
As the long−awaited Australia−US Treaty comes closer to full<br />
implementation, reporter GRANT SMYTH looks at what it will mean for<br />
the local defence industry and the opportunities it may create.<br />
By GRANT SMYTH<br />
The Australia-US Treaty on <strong>Defence</strong> Trade Cooperation<br />
moved closer to full implementation in November<br />
2011with the ratifi cation of the <strong>Defence</strong> Trade<br />
Controls Bill in the House of Representatives.<br />
The Bill is the latest legislative step in an already<br />
more than four-year-long process that will lead to the<br />
creation of an “Approved Community” of Australian<br />
and US defence contractors able to transfer a range<br />
of <strong>Defence</strong> articles on the United States Munitions<br />
List (USML) without applying for licences from the US<br />
Department of State.<br />
Once the Bill is ratifi ed in the Australian Senate<br />
this year, a Pathfi nder program will test the Treaty’s<br />
provisions before the appointment of the Approved<br />
Community begins.<br />
The Australia-US Treaty on <strong>Defence</strong> Trade<br />
Cooperation was signed by George W Bush and John<br />
Howard in Sydney on September 5, 2007. The Treaty<br />
seeks to help US and Australian companies avoid<br />
the labyrinthine legal restrictions relating to the US’s<br />
International Traffi c in Arms Regulations (ITAR).<br />
ITAR controls the export and import of <strong>Defence</strong>related<br />
articles and services on the USML.<br />
The regulations have been criticised in the past<br />
by US defence contractors, who have blamed them<br />
for damaging their export businesses. They have also<br />
been criticised by defence companies in countries<br />
allied with the US who have found it diffi cult to<br />
develop and procure <strong>Defence</strong> articles because of the<br />
time consuming process of applying for licences and<br />
the fear of breaking US law.<br />
The penalties for transferring <strong>Defence</strong> related<br />
articles on the USML without a licence are severe and<br />
several major international contracts are believed to<br />
have been lost to the US, particularly in aerospace,<br />
because of fears over technology transfer barriers.<br />
In 2007 ITT Corporation was fi ned US$100<br />
million over the unauthorised retransfer of night vision<br />
technology equipment to China, Singapore and the<br />
UK. Other companies who have fallen foul of ITAR<br />
include Lockheed Martin, Motorola and Boeing.<br />
The <strong>Defence</strong> Trade Controls Bill contains the<br />
regulatory measures that must be put in place in order<br />
to implement the <strong>Defence</strong> Trade Cooperation Treaty.<br />
These include the creation of a Treaty<br />
Management Board, a system to admit companies<br />
13
14 FEATURE<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
as members of the Approved Community and a new<br />
IT system to support the treaty and strengthen export<br />
controls.<br />
Under the current system, applications for ITAR<br />
related licences can take up to a year.<br />
ITAR has also been criticised because it has<br />
considered the accessing of <strong>Defence</strong> articles on the USML<br />
by any person of a different nationality to that which<br />
has been licensed (including those with dual nationality)<br />
to be an illegal retransfer, requiring a separate licence<br />
application. This would include, for example, a British or<br />
Asian employee of an Australian company.<br />
The <strong>Defence</strong> Trade Controls Bill was the result of<br />
a three-stage consultation process.<br />
Stage one was meetings with Australian<br />
defence companies in eight capital cities and regional<br />
centres last year.<br />
Stage two was the establishment of the <strong>Defence</strong><br />
Trade Cooperation Treaty Industry Advisory Panel in<br />
May, chaired by Mr Ken Peacock AM.<br />
The third stage was the release of the exposure<br />
draft of the Bill for broader industry and community<br />
feedback in July of this year.<br />
"The Treaty does<br />
have significant<br />
limitations and raises<br />
some important<br />
administrative issues<br />
that Governments<br />
need to address<br />
before SMEs can<br />
realise its benefits"<br />
Concerns that Small to Medium Sized<br />
Enterprises (SMEs) might face substantial new costs<br />
have been addressed by provisions including a<br />
guarantee that there will be no registration fee, as well<br />
as free security clearances and training.<br />
The former Minister for <strong>Defence</strong> Materiel, The<br />
Hon. Jason Clare, said last year that the Treaty would<br />
“save the Australian Government and Australian<br />
industry time”.<br />
The Government has also said that Australian<br />
companies could become natural partners in the US<br />
global supply chain in the Asia-Pacifi c region once the<br />
Approved Community is established.<br />
Fred Hull, Aerospace <strong>Defence</strong> Manager at<br />
Adelaide-based Diemould, said his company had good<br />
and bad experiences with ITAR and believes that the<br />
Treaty will improve its ability to bid for US contracts.<br />
Diemould is a South Australian-owned company<br />
specialising in the design and manufacture of high<br />
quality plastic injection moulds and special purpose<br />
equipment.<br />
“Our fi rst project involving ITAR was with a<br />
company in Utah,” Mr Hull said.<br />
“We set ourselves up well and got through it all<br />
without any problems.<br />
“The next time was with a large US prime but<br />
that didn’t work out and we think it was because of<br />
ITAR. We did a fair bit of groundwork and were in the<br />
US to try to be part of the bid process but we were<br />
unsuccessful.”<br />
Mr Hull said Diemould welcomed the<br />
opportunity to be able to bid for more work in the US<br />
and that his company was confi dent it could compete<br />
in the US market.<br />
However, Robert Wylie, a lecturer at the<br />
Australian <strong>Defence</strong> Force Academy at the University<br />
of New South Wales, who has studied the diffusion<br />
of military technology between the United States and<br />
Australia, said local companies should be cautious.<br />
Mr Wylie acknowledged that the Treaty would<br />
help local companies support US-origin equipment<br />
purchased under Government-to-Government<br />
agreements and/or used by the <strong>AD</strong>F in specifi ed joint<br />
operations with US forces. But he said the advantages<br />
should not be oversold.<br />
“The Treaty does have signifi cant limitations<br />
and raises some important administrative issues that<br />
Governments need to address before SMEs can realise<br />
its benefi ts,” Mr Wylie said.<br />
“It does not apply to specifi c technologies like<br />
stealth and satellites that the US considers critical to<br />
its military advantage. Nor does it include technologies<br />
critical to <strong>AD</strong>F conduct of network-enabled operations<br />
like sensor fusion, underwater acoustics or maritime<br />
target detection and classifi cation.”<br />
Mr Wylie said that the Treaty also excludes<br />
a range of enabling technologies that are vital to<br />
Australian industry’s ability to contribute to <strong>Defence</strong><br />
self-reliance.<br />
Such technologies include software source<br />
codes beyond those required for basic operations,<br />
maintenance and training as well as technology<br />
required to manufacture everything from electronic<br />
warfare equipment to submarines.<br />
He said there were also potential administrative<br />
problems stemming from important divergences<br />
between US and Australian concepts of race,<br />
citizenship and nationality.<br />
“In recent years this has led to companies<br />
in Victoria, Western Australia and the ACT having<br />
to incur the uncertainty, delay and costs associated<br />
with obtaining waivers of State and Territory antidiscrimination<br />
legislation,” Mr Wylie said.<br />
He said he felt the Federal Government had<br />
failed to suffi ciently address this issue in a Regulatory<br />
Impact Statement.<br />
“State, Territory and Commonwealth<br />
Governments need to work together to produce a<br />
legal framework that minimizes costs and uncertainty<br />
for local defence suppliers,” he said.<br />
Meanwhile, Darryl Mincham, of aviation<br />
components manufacturer and repairer Mincham<br />
Aviation, said that although he believed the aims of<br />
the Treaty were good in theory, many SMEs were<br />
suffering from “legislation exhaustion”. He said he felt<br />
this way in spite of Government assurances that the<br />
Treaty would cut down on how much administration<br />
his company would have to undertake.<br />
Mr Mincham said he was also concerned<br />
about potential costs, in spite of assurances of free<br />
registration, security clearances and training. He was<br />
worried that Australian SMEs might eventually be<br />
forced to participate in the Approved Community even<br />
Former <strong>Defence</strong> Materiel Minister Jason Clare<br />
if they would rather use the current system.<br />
“We would probably prefer to stick to the<br />
current system,” he said.<br />
“Where this might become a problem is<br />
if the Primes decide they want to fl ow down the<br />
requirements. Then we may have no choice.”<br />
Mr Mincham said that even if training was free,<br />
he would still incur the cost of sending members of<br />
staff to wherever the training courses were held and<br />
that complying with the new legislation would be<br />
“another” non-value added activity for his business.<br />
In response to questions from SA <strong>Defence</strong><br />
Business, a <strong>Defence</strong> spokesperson said that any<br />
decision to participate in trade under the treaty<br />
remains a commercial decision for Australian<br />
companies but pointed out that operating under ITAR<br />
also required some administrative overheads.<br />
Asked how the divergences between US and<br />
Australian concepts of race, citizenship and nationality<br />
would apply to ITAR application, the spokesperson<br />
said the US had amended ITAR last year to eliminate<br />
the need to obtain prior approval from the Directorate<br />
of <strong>Defence</strong> Trade Controls for transfers of unclassifi ed<br />
<strong>Defence</strong> articles to dual national or third country<br />
national employees. Guidance on the rule is available<br />
at http://www.defence.gov.au/strategy/deco/us.htm<br />
The spokesperson said that the Treaty would<br />
make eligibility to access items by individuals subject<br />
to an objective decision based on the assessed risk of<br />
diversion of technology.<br />
On the possibility that the Treaty might lead to<br />
more ‘off-the-shelf’ purchases of <strong>Defence</strong> materiel<br />
and about whether it might provide an advantage to<br />
US companies, the spokesperson said: “There is no<br />
change to Government policy that seeks to sustain<br />
FMS [Foreign Military Sales] equipment capabilities<br />
in Australia where this offers value for money for the<br />
Government or is of strategic importance. Where<br />
the preferred tenderer is a part of the Approved<br />
Community, the Treaty will make the process simpler<br />
to transition FMS items to Australian defence industry<br />
for sustainment. The purchase of ‘off-the-shelf’<br />
products will remain subject to current procurement<br />
guidelines and capability requirements.”
January/February 2012 SA <strong>Defence</strong> Business XXX 15<br />
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FEATURE<br />
16 January/February 2012 SA <strong>Defence</strong> Business<br />
The case for the<br />
home−grown<br />
Future Submarine<br />
By STUART HODGE<br />
Australia has almost 100 years of service history with<br />
submarines. Over this time we have used a variety<br />
of designs from a number of countries, and have<br />
wavered between completely hands-off, second<br />
hand purchases to overseas designs built here in<br />
Australia. Now that the future submarine program is<br />
beginning in earnest, we need to decide how we will<br />
build our next generation of submarine.<br />
Recent debates on Australia’s future submarine<br />
have focused on the strategic need for submarines,<br />
and have debated the nuclear/non-nuclear question<br />
to death. Several commentators have advocated<br />
purchasing off-the-shelf submarines or designs from<br />
A timeline of Australian submarines<br />
1914 Australia’s fi rst submarines, the AE1 and AE2,<br />
are commissioned into service. Both would serve<br />
in World War 1, with the AE1 being lost (and still<br />
unrecovered) off the coast of New Guinea. The AE2<br />
served in the Dardanelles campaign, before taking<br />
an impact in 1915 and being scuttled.<br />
1919 Australia is gifted a fl otilla of J-class<br />
Australian E class submarine<br />
Australian submarine AE 1 lost on patrol<br />
submarines from the Royal Navy.<br />
The boats, all World War I surplus, were prone to<br />
breakdown and needed deep refi ts. The submarines<br />
participated in a series of local exercises, but in<br />
1922 the decision to pay the fl otilla off and put the<br />
submarines up for disposal was made.<br />
1928 Two Odin-Class submarines are commissioned<br />
France, Germany or Spain, with Australian industry<br />
having a limited role in production. The argument has<br />
some merit, largely cost-wise, but will it deliver the<br />
submarine capability we need?<br />
Several leading fi gures and institutions believe<br />
that the unique operational requirements for an<br />
Australian submarine mean that any design must<br />
be very heavily modifi ed or completely new. The<br />
2009 <strong>Defence</strong> White Paper calls for submarines with<br />
“greater range, longer endurance on patrol, and<br />
expanded capabilities compared to the current Collins<br />
class submarine”.<br />
According to the Submarine Institute of<br />
Australia (SIA), only a brand new design will deliver<br />
on these requirements. CEO and Managing Director<br />
of Australian submarine builder ASC Steve Ludlam<br />
agrees. In a speech at the recent SIA Submarine<br />
Science and Technology Conference, Mr Ludlam said<br />
that current off-the shelf designs won’t work for the<br />
Australian strategic environment.<br />
“The French, Spanish and German models<br />
all seem to be good submarines but all have a dive<br />
displacement of around 2,000 tonnes – less than two<br />
thirds of the Collins Class,” Mr Ludlam said.<br />
into the Australian Navy. The HMAS Otway and<br />
HMAS Oxley, each with a crew of 54, were exercised<br />
at sea, but due to the worsening economic<br />
conditions in 1929-1931 and a perceived greater<br />
need by the Empire, were transferred to the British<br />
Royal Navy as gifts.<br />
1939 Whilst having no serving submarines during<br />
World War II, Australian bases were occasionally used<br />
as bases for American, British and Dutch submarines,<br />
with a major build-up at Fremantle. During the war<br />
Australia would engage with several submarines,<br />
notably Japanese midget subs that harassed Sydney<br />
and Newcastle<br />
1944 The Australian Navy repurposes an older<br />
Dutch submarine, the K9, but issues with batteries<br />
cause it to be decommissioned in 1944<br />
1949 A British submarine unit, the RN 4th<br />
Submarine Squadron, is based out of Sydney. The<br />
British Squadron, which would be used for training<br />
RAN and RNZN personnel in Anti-submarine<br />
warfare, would remain in Sydney until the<br />
commissioning of the second Oberon class boats.<br />
1967 The fi rst Australian Oberon-class submarine,<br />
the HMAS Oxley II, is commissioned. Constructed in<br />
Scotland, the Australian Oberons differed from their<br />
British counterpart in the electronics systems and<br />
torpedo systems.<br />
1978 The fi nal Australian Oberon, the HMAS<br />
“All four submarine classes…are considered<br />
small coastal submarines that carry fewer weapons<br />
and have less growth potential than is ideal.”<br />
The Collins class have the capability to sail<br />
from the north coast of Australia to the South China<br />
Sea and back, staying on station for up to six weeks.<br />
Current off-the-shelf solutions don’t offer this capability.<br />
The Government, to its credit, has consistently<br />
stated that the next Australian submarine will be<br />
assembled in Australia. Mr Ludlam says that a<br />
submarine building program is a true nation building<br />
program, utilising expertise from across the country.<br />
“[The naval shipbuilding industry] employs many,<br />
many Australians in every State and Territory,” he said.<br />
‘… [it] delivers wealth from the Pilbara to Port<br />
Kembla, to yards around Australia and ultimately to<br />
Adelaide.”<br />
The benefi ts don’t just fl ow to Primes either-<br />
many Small to Medium Enterprises were initially, and<br />
to this day, involved in the Collins Class production<br />
and sustainment projects. Pacifi c Marine Batteries<br />
maintains and builds the Collins’ 440 tonne battery<br />
unit. Many engineering fi rms in Adelaide have<br />
machined components or cut segments for the<br />
Otama, is commissioned. The 6-Oberon class<br />
submarines would remain in service into the<br />
90s, with the Otama being retired in 1999. The<br />
Oberons are upgraded to increase their capabilities<br />
throughout the 70s and 80s.<br />
1982 Australia decides to build the next submarine<br />
Royal Australian Navy Oberon class submarine<br />
in Australia, based on a modifi ed overseas design.<br />
1987 The <strong>Defence</strong> Minister, Kim Beazley, announces<br />
that a Kockums design, modifi ed from the Swedish<br />
type 471 vessel, will be used for the new sub.<br />
Beazley also announces that the subs will be built<br />
at Port Adelaide by a new Australian Governmentowned<br />
Australian Submarine Corporation.<br />
1996 The HMAS Collins is commissioned. The 6
January/February 2012 SA <strong>Defence</strong> Business<br />
submarines, and innovative systems companies like Acacia Research have built<br />
tactical systems for Collins’ use. The expertise of these fi rms should be used<br />
on a future submarine utilising a strong industrial capability that will only grow<br />
stronger.<br />
The SIA agrees that the submarines should be built here, not just because<br />
of the industrial benefi ts but also as a strategic benefi t. The SIA argues that “a<br />
capacity to repair and replace submarines in operation reduces the impact of<br />
attrition and increases the effort required of an aggressor to guarantee that it<br />
has removed all Australian submarines from its path”.<br />
This doesn’t mean there are not challenges before Australian industry,<br />
but by planning for them now we can overcome them. A recent review into<br />
Collins sustainment (The Coles review) has highlighted some key issues that<br />
should be addressed in any future program, and a report from the RAND<br />
Corporation commissioned by the Federal Government makes for thought<br />
provoking reading.<br />
We shouldn’t, however, think that these diffi culties put this program<br />
beyond us. We should design it here, we should build it here, and we should<br />
maintain it here.<br />
“It is a time to stand beside the key players in Australian defence<br />
industry and affi rm that Australians have the expertise, skill set, international<br />
relationships and capacity to build the next generation of submarines on their<br />
own soil,” Mr Ludlam said.<br />
Collins vessels are launched up until 2003. Despite some early negative<br />
press, the Collins is an extremely quiet, long-range submarine.<br />
2009 The Rudd Government’s <strong>Defence</strong> White Paper recommends the<br />
construction of 12 new submarines. The “Future Submarines” will be longrange<br />
vessels capable of meeting the challenges of both naval warfare/<br />
maritime disputes and also be capable of handling more exotic situations such<br />
as maritime terrorism and piracy.<br />
2012 The Future Submarine program is beginning to heat up, with the<br />
release of a RAND Corporation study into the program and the Australian<br />
Government consulting with submarine designers.<br />
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18 PROFILE<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
Balancing Act<br />
From managing the State’s finances to spearheading the local defence<br />
industry, the Hon. Jack Snelling juggles key ministerial portfolios with busy<br />
family life.<br />
By GRANT SMYTH<br />
South Australian Treasurer Jack Snelling is reassuring -<br />
just as you would expect him to be.<br />
That is to say that he is relaxed and friendly,<br />
answers questions in a polite, succinct manner and<br />
seems genuinely comfortable in his own skin. He<br />
comes over as a man who says what he means and<br />
means what he says.<br />
The Member for Playford is a father of six<br />
young children, so perhaps that’s part of the reason<br />
for his relaxed but fi rmly on-the-ball demeanour. If you<br />
can successfully manage a gaggle of six boisterous<br />
youngsters, then it’s probably fair to say that you can<br />
handle just about anything.<br />
And with a ministerial portfolio encompassing<br />
Treasury, Workers’ Rehabilitation, <strong>Defence</strong> Industries and<br />
Veterans’ affairs, he has a lot more to handle than most.<br />
Like all good - and wise – husbands, he is quick<br />
to point out that his wife, Lucia, is the one who makes<br />
juggling a busy family life and career possible.<br />
She has clearly been doing a good job, because<br />
her husband’s resume makes for impressive reading.<br />
Mr Snelling became interested in politics while<br />
he was a schoolboy and his interest continued while<br />
he studied at the University of Adelaide. He worked at<br />
the shop assistants’ union and then for Martyn Evans,<br />
the former Member for Bonython, before successfully<br />
standing for the Playford constituency in 1997.<br />
Upon his election he became the youngest<br />
member of the House of Assembly and he went on to<br />
hold the roles of Deputy Speaker and Speaker.<br />
He was appointed as Treasurer in February 2011<br />
by the former Premier Mike Rann, and is also a member<br />
of the Government’s Executive Council.<br />
All this, and he has not yet seen in his 40th<br />
birthday – he will celebrate the “Big Four Oh” in<br />
November of this year.<br />
For defence contractors, it is in his role as<br />
Minister for <strong>Defence</strong> Industries, to which he was<br />
appointed in October 2011, that he will perhaps<br />
come under most scrutiny.<br />
It will be reassuring then for them that time<br />
and again he stresses his belief that the advanced<br />
manufacturing sector in which they operate is critical<br />
to South Australia’s economic future.<br />
Doubly reassuring is that he also believes the<br />
key to maintaining that sector is ensuring that South
January/February 2012 SA <strong>Defence</strong> Business PROFILE<br />
Jack Snelling the family man − at home with wife Lucia and his six children<br />
Australia continues to have a workforce with an<br />
advanced manufacturing skills set that is the envy of the<br />
rest of Australia.<br />
As a former Minister for Employment, Training and<br />
Further Education, he established a good relationship<br />
with the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> (DTC) before taking on<br />
the <strong>Defence</strong> Industries portfolio.<br />
And he knows the DTC’s members and their<br />
highly skilled employees are a big part of the reason why<br />
South Australia, with just eight per cent of the nation’s<br />
population, attracts 25 per cent of its <strong>Defence</strong> spend.<br />
Mr Snelling intends to make sure it stays that<br />
way and says he is looking forward to getting out of<br />
the offi ce and catching up with the State’s defence<br />
contractors face to face.<br />
"SA, which is<br />
already known as<br />
the <strong>Defence</strong> State,<br />
should aim to<br />
become the "Silicon<br />
Valley" of Australia’s<br />
defence industry"<br />
The SA Government has set a target for defence industry<br />
to be generating $2.5 billion per year and employing<br />
37,000 people by 2020.<br />
There is certainly no lack of ambition in those<br />
fi gures, but how will the Government deliver on them?<br />
“I think the fi rst factor in achieving these<br />
targets will be our ability to deliver on vocational<br />
training reform and the Science, Technology,<br />
Engineering and Mathematics (STEM) Skills Strategy<br />
in our schools,” said Mr Snelling.<br />
“Getting kids interested in science, technology<br />
and mathematics will be key. We need high skill levels<br />
and high levels of training. Our vocational training and<br />
education sector needs to be more responsive to the<br />
needs of industry.<br />
“Our relationship with the Federal Government<br />
is an area that is also obviously extremely important. We<br />
need to make sure South Australia is seen as an attractive<br />
place to invest and it is critical that we help the local<br />
defence industry when they are bidding for <strong>Defence</strong><br />
procurement contracts.<br />
“When you think of the Future Submarine Project,<br />
for example, you’re talking about a <strong>Defence</strong> project that<br />
will be as important to South Australia as the Olympic<br />
Dam project has been.”<br />
Mr Snelling believes that achieving a “critical<br />
mass” in the state’s ability to provide <strong>Defence</strong> capability<br />
will create a situation wherein exponential growth can be<br />
achieved.<br />
SA, which is already known as the <strong>Defence</strong> State,<br />
should aim to become the “Silicon Valley” of Australia’s<br />
defence industry, he says.<br />
But while he believes <strong>Defence</strong> can be an incredible<br />
economic dynamo, he is conscious of the cyclical<br />
nature of the industry and says it is essential for defence<br />
contractors to seek alternative income streams.<br />
“The biggest challenge defence contractors have<br />
is to diversify and fi nd civilian applications for what they<br />
are making,” he said.<br />
“<strong>Defence</strong> is terribly cyclical. Federal Government<br />
will go through stages of mass procurement and then<br />
when things turn bad, <strong>Defence</strong> is one of the fi rst things<br />
they look at cutting back.”<br />
19<br />
The minister becomes especially animated when he is<br />
speaking about education and skills generation. It’s no<br />
surprise then that he regards the Skills for All reforms,<br />
which have transformed vocational training in SA, as his<br />
greatest political achievement.<br />
Veterans’ Affairs is also an area that is particularly<br />
close to his heart. His father served in Vietnam with<br />
The First Battalion, The Royal Australian Regiment<br />
(1RAR), and he says he feels a particular affi nity with the<br />
veterans’ community.<br />
That commitment is such that he requested the<br />
ministry be returned to him in October 2011- he had<br />
previously held the portfolio from March 2010 until<br />
February 2011.<br />
So what lies ahead for the defence sector in SA?<br />
Mr Snelling says <strong>Defence</strong> will be a great generator<br />
of wealth and prosperity for the State. But, perhaps even<br />
more importantly, he says it can help stem the brain drain<br />
to other states, while also addressing some important<br />
social issues.<br />
“When I was at university a lot of my friends had<br />
to go interstate to further their careers. The development<br />
of the defence industry will allow more smart and<br />
talented young South Australians to pursue careers in<br />
their home state,” he said.<br />
“<strong>Defence</strong> can also create opportunities for<br />
employment and engagement with South Australians<br />
who have been economically and socially disadvantaged<br />
in the past. So the benefi ts are two-fold, both economic<br />
and social.”<br />
And if one of his children wanted to go into the<br />
defence business?<br />
“I would give them the same advice as I would<br />
give to any other defence contractor, which is to diversify.<br />
But I’d be delighted for them.”
20 INDUSTRY<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
Who’s who for defence industry support?<br />
By HOLLY CARUSO<br />
With the recent change of DTED to DMITRE, DECS<br />
to DECD and the overuse of acronyms to describe<br />
Government departments and State associations, there<br />
is growing confusion in defence industry regarding<br />
who’s who and how can they help. The following is a<br />
guide on who defence industry should seek for support<br />
for business growth:<br />
<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> <strong>Inc</strong> (DTC)<br />
The DTC is the defence industry association of South<br />
Australia, it is nationally and internationally recognised<br />
as being relevant, responsive and reliable to defence<br />
and security-related industries. The DTC assists defence<br />
industry to enhance their defence capability through<br />
the SME Capability Development Program, upskill their<br />
workforce through the Productivity Places Program,<br />
develop future leaders through the South Australian<br />
<strong>Defence</strong> Industry Leadership Program and create a<br />
diverse workforce with the introduction of the Women<br />
infl uencing <strong>Defence</strong> and Resources Industries program.<br />
Contact: P 08 8260 8256 E business@dtc.org.au<br />
W www.dtc.org.au<br />
<strong>Defence</strong> SA<br />
<strong>Defence</strong> SA is the nation’s only stand-alone state<br />
defence organisation and South Australia’s lead<br />
Government agency tasked with growing the state’s<br />
<strong>Defence</strong> presence and building a sustainable defence<br />
industry for South Australia. <strong>Defence</strong> SA works<br />
closely with <strong>Defence</strong> and industry, targeting defence<br />
investment and expansion opportunities and drives and<br />
supports the delivery of major <strong>Defence</strong> projects and<br />
facilities. <strong>Defence</strong> SA provides vital defence precincts<br />
including Techport, Technology Park and Edinburgh<br />
Parks to support the collaboration and development of<br />
defence industry.<br />
Contact: P 08 8463 7140 E enquiries@defencesa.com<br />
W www.defencesa.com<br />
<strong>Defence</strong> Materiel Organisation (DMO)<br />
The DMO is the nation’s largest project management<br />
organisation, its mission is to acquire and sustain<br />
equipment for the Australian <strong>Defence</strong> Force (<strong>AD</strong>F).<br />
To engage with industry, the DMO administer the<br />
<strong>Defence</strong> + Industry ePortal, a comprehensive defence<br />
industry capability database, the <strong>Defence</strong> Export Unit<br />
and Team Australia. Other key DMO initiatives include<br />
Skilling Australia’s <strong>Defence</strong> Industry (S<strong>AD</strong>I) program, the<br />
Australian Industry Capability (AIC) program, Priority<br />
Industry Capability Innovation Program, <strong>Defence</strong><br />
Engineering Internship Program and support of the<br />
Enterprise Connect and the <strong>Defence</strong> Industry Innovation<br />
<strong>Centre</strong>s. Most signifi cantly, DMO provide Business Access<br />
Offi ces in each state with the intention of building<br />
stronger relationships between <strong>Defence</strong> and industry.<br />
Contact: P 08 8305 6679<br />
W www.defence.gov.au/dmo/id/bao/<br />
Enterprise Connect (EC)<br />
EC are part of the Department of Innovation,<br />
Industry, Science and Research, their aim is to<br />
connect small businesses to the knowledge, tools<br />
and expertise necessary to improve productivity,<br />
increase competitiveness and fully capitalise on the<br />
growth potential of the business. EC provide Business<br />
Reviews for defence industry, a top-to-bottom analysis<br />
of a business, carried out on-site by highly skilled<br />
and experienced Business Advisers at no charge<br />
to a business. Business Advisers work with people<br />
throughout various operational levels of a business to<br />
develop a thorough view of the businesses strengths<br />
and weaknesses, strategic issues, potential areas for<br />
business improvement and potential areas for growth.<br />
Contact: P 08 8162 4705 E ECSA@innovation.gov.au<br />
W www.enterpriseconnect.gov.au<br />
<strong>Defence</strong> Industry Innovation <strong>Centre</strong> (DIIC)<br />
Working closely with EC, the DIIC delivers the Supplier<br />
Continuous Improvement Program (SCIP), a supply<br />
chain management initiative that is becoming widely<br />
adopted as the standard within the defence industry.<br />
SCIP offers a continuous improvement framework<br />
for supply chain performance. SCIP members work<br />
together to harmonise how supply chains are<br />
developed, how accreditation occurs, how performance<br />
is measured and how relationships are improved. There<br />
is no charge to sign up to SCIP and it is available to<br />
businesses of any size.<br />
Contact: P 03 9215 2652 E scip@innovation.gov.au.<br />
W www.enterpriseconnect.gov.au (<strong>Centre</strong>s -> defence<br />
industry)<br />
Innovate SA<br />
Innovate SA provide a range of high level services and<br />
programs to selected emerging and existing enterprises<br />
and industry sectors to develop internationally<br />
competitive businesses and support a diverse ‘highvalue’<br />
industry base within South Australia. Through<br />
State and Federal grants, Innovate SA assists industry<br />
to enter new markets, develop infrastructure,<br />
commercialise innovations and develop clean<br />
technology, in addition to other vital initiatives.<br />
Contact: P 08 8113 0700 W www.innovatesa.com.au<br />
Industry Capability Network (ICN)<br />
ICN support industry through profi ling their capabilities in<br />
a database that is utilised for supply chain opportunities<br />
for major projects. ICN performs a technical role<br />
providing purchasers with a free sourcing service to<br />
identify Australian suppliers capable of supplying those<br />
items that would otherwise be imported.<br />
Contact: P 1300 553 309 E info@icnsa.org.au<br />
W www.icnsa.org.au<br />
Department of Innovation, Industry, Science and<br />
Research (DIISR)<br />
The priority of DIISR, a Federal Government<br />
department, is to encourage the sustainable growth<br />
of Australian industries by developing a national<br />
innovation system that drives knowledge creation,<br />
cutting-edge science and research, international<br />
competitiveness and greater productivity. Most<br />
signifi cant for defence industry are the subsidiary<br />
organisations within DIISR, including AusIndustry, which<br />
provides a range of incentives to assist business growth<br />
coordinates programs such as Commercialisation<br />
Australia as well as import and export programs.<br />
Contact: P 13 28 46 E hotline@ausindustry.gov.au<br />
W www.ausindustry.gov.au<br />
Department of Further Education, Employment,<br />
Science and Technology (DFEEST)<br />
DFEEST is the State Government’s key workforce<br />
participation agency, providing services to build skills for<br />
South Australia through workforce planning and skills<br />
development programs; high quality public vocational<br />
education and training through TAFE SA and fostering<br />
innovation through science and information. DFEEST are<br />
responsible for supporting key skills enabling programs<br />
in the State such as the Productivity Places Program<br />
and implementing Skills for All, a strategic direction for<br />
vocational education and training in South Australia.<br />
Contact: P 08 8463 5552<br />
E dfeestworkforceinfoservice@sa.gov.au<br />
W www.dfeest.sa.gov.au<br />
Department for Manufacturing, Innovation, Trade,<br />
Resources and Energy (DMITRE)<br />
DMITRE is the South Australian Government’s key<br />
agency driving economic prosperity in the State.<br />
The new department brings together a trade and<br />
economic development role with minerals, energy,<br />
renewable energy and trade policy. Through an<br />
industry development role, the department aims to<br />
ensure South Australia continues to develop highvalue<br />
manufactured goods, technologies and services.<br />
<strong>Defence</strong> industry with a manufacturing focus benefi t<br />
from the DMITRE subsidiary Innovate SA and the<br />
DMITRE expertise in exporting and investing.<br />
Contact: P 08 8303 2400 E DTEDinfo@sa.gov.au<br />
W www.southaustralia.biz/About-DMITRE.aspx<br />
Department for Education and Child Development<br />
(DECD)<br />
DECD facilitates the Advanced Technology Industry<br />
School Pathways Program (ATISPP), a program that aims<br />
to provide students the opportunity to learn skills for<br />
careers in the growing defence and maritime industries.<br />
Nineteen schools participating in the Project are clustered<br />
together in the northern, western and southern<br />
metropolitan regions to develop pathway programs,<br />
share resources and services. The ATISPP works to<br />
develop active partnerships between employers and<br />
schools that lead to opportunities for students to engage<br />
in a range of learning experiences with industry.<br />
Contact: P 08 8226 5891 E Brenton.Schulze@sa.gov.au<br />
W www.tradeschoolsforthefuture.sa.edu.au<br />
Department of Immigration and Citizenship (DIAC)<br />
DIAC provide information to employers in the defence<br />
industry about migration options to address skills<br />
shortages. Industry can access DIAC services through<br />
the Outreach Offi cer at the DTC who is available to<br />
provide free visa/immigration information to employers<br />
who need to recruit skilled workers from overseas.<br />
Contact: P 08 8260 8256 E business@dtc.org.au<br />
W www.dtc.org.au/aspx/skilledMigration.aspx
January/February 2012 SA <strong>Defence</strong> Business<br />
CGI of HMAS Hobart, Australia’s new Air Warfare Destroyer<br />
Block 109, the first to arrive by barge at Osborne, South Australia Mark 25 typhoon guns to be mounted on the AWD<br />
AWD milestones<br />
In 2011, work on the Air Warfare Destroyer (AWD)<br />
project ramped up as the AWD Alliance worked<br />
through successes and challenges , including decisions<br />
made to benefi t the outcome of the project.<br />
The AWD Alliance, which consists of ASC,<br />
Raytheon and Commonwealth’s <strong>Defence</strong> Materiel<br />
Organisation, is working to deliver the three AWDs.<br />
Once complete, they will be one of the most capable<br />
warships of its size in the world.<br />
Throughout the year, the AWD Alliance achieved<br />
a number of important milestones.<br />
In shipbuilding, work has started on all blocks<br />
for HMAS Hobart with the exception of the mast.<br />
Fabrication of 11 blocks for the second ship, HMAS<br />
Brisbane, has also begun and work on HMAS Sydney<br />
will begin in 2012.<br />
In a major milestone of the project, the AWD<br />
Alliance took delivery of the fi rst three blocks from<br />
subcontractor BAE Systems in August and September.<br />
As the project heads towards consolidation of<br />
HMAS Hobart in 2012, the AWD Alliance will continue<br />
to take delivery of blocks from BAE Systems and second<br />
subcontractor, Forgacs.<br />
PROJECT UPDATE<br />
The AWD Alliance has also taken delivery of<br />
major pieces of combat systems including,<br />
Three shipsets of the Mark 45 gun mounts<br />
Six Mark 25 Typhoon guns – two for each ship<br />
The fi rst two shipsets of the Australian Tactical<br />
Interface.<br />
In May, the Commonwealth announced the<br />
reallocation of the construction of blocks to assist<br />
the project’s schedule. The AWD Alliance and their<br />
subcontractors have been working collaboratively to<br />
minimize the impact to the project’s schedule.<br />
This reallocation is expected to reduce delays to<br />
the project by up to 12 months.<br />
Currently there are 1000 production workers<br />
in the Australian shipyards, (ASC, Forgacs and BAE<br />
Systems) with more than 2100 people across Australia<br />
working on the project in total. In 2012, the AWD<br />
Alliance will reach peak production.<br />
At this stage the fi rst ship is expected to be<br />
delivered to the Royal Australian Navy in December<br />
2015.<br />
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www.lawsonrisk.com.au
22 INDUSTRY<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
Welcome to the bottom of the curve<br />
By STUART HODGE<br />
The defence industry in Australia is often viewed as a<br />
series of ‘peaks and troughs,’ as spending in particular<br />
<strong>Defence</strong> capability areas tend to get large injections of<br />
cash (peaks), bookended by fallow periods (troughs).<br />
However, the 2011-12 and 2012-13 period is the<br />
largest planned trough in the next 15 years, across all<br />
defence sectors. The size of this trough is exacerbated<br />
by the slow rate of project approvals, which could<br />
mean that projects scheduled to roll out in 2013-14<br />
could also be delayed. Recent reports also suggest<br />
that the Department of <strong>Defence</strong> will be handing back<br />
a large amount of unspent money to the Federal<br />
Government, similar to the $1.1 billion handed back in<br />
the May 2011 budget. We are truly at the bottom of<br />
the <strong>Defence</strong> spending curve. So what factors will affect<br />
defence companies in 2012?<br />
The Global <strong>Defence</strong> Market<br />
The world defence market is broadly in a downturn,<br />
as traditional big spenders in Europe and the US<br />
continue to delay or cut spending in response to<br />
fi nancial pressures. In the US alone, more than<br />
$US450 billion will be cut from the Pentagon’s<br />
budget over the next decade - and this fi gure will<br />
increase if the US Congress fails to make other cuts<br />
as part of expenditure reduction measures. European<br />
economies continue to be shaky, with Norway one<br />
of the only European forces to increase its <strong>Defence</strong><br />
acquisition budget. The reduction in foreign <strong>Defence</strong><br />
budget could encourage <strong>Defence</strong> Primes to seek<br />
opportunities in more stable markets like Australia,<br />
and could therefore drive an increase in competition<br />
and possibly increased ‘insourcing’ of existing work<br />
to maintain workforces or capabilities.<br />
This doesn’t mean that the global defence<br />
market is all bad news. Indonesia recently voted to<br />
increase their <strong>Defence</strong> budget by 35 per cent, a move<br />
that will see our close neighbour replace a large volume<br />
of outdated equipment. Several other South East Asian<br />
countries are also building or modernising their military<br />
capability, which could be an opportunity for export<br />
and collaboration. For more information on dealing<br />
with these countries, contact the DTC or Austrade.<br />
Policy<br />
On a domestic front, the defence market will be<br />
impacted by several policy changes from the Federal<br />
Government. The implementation of the US-Australia<br />
<strong>Defence</strong> Trade Controls Bill 2011 will hopefully reduce<br />
the burden of the US Export process. In the short term,<br />
this could help Australian companies work with the<br />
US technology here and will hopefully, in time, lead to<br />
success in Australian companies exporting to the US.<br />
The recently announced US Marine base in Darwin<br />
could also be an opportunity for industry, depending<br />
on the equipment to be placed in the country and its<br />
maintenance requirements.<br />
The recent changes to Australian Industry<br />
Content plans will see <strong>Defence</strong> Primes looking to<br />
partner more with local industry on any project over<br />
$20 million, with the<br />
8.00<br />
enforceability and relative<br />
7.00<br />
weighting of the plans<br />
6.00<br />
being increased in 2011.<br />
A recent announcement<br />
5.00<br />
that AIC plans will be<br />
4.00<br />
made public will give<br />
3.00<br />
subcontractors a better<br />
2.00<br />
guide as to where the<br />
1.00<br />
opportunities in particular<br />
projects lie, which will<br />
2011/12<br />
make it easier to see<br />
where your capabilities can be<br />
applied. As the AIC plans also apply to sustainment<br />
contracts, we could see several large wins for industry<br />
after the policy becomes enforceable in January 2012.<br />
In-country Acquisition<br />
Land Projects<br />
Late 2012 should see life returning to some projects,<br />
as projects such as LAND 121 and LAND 400 begin to<br />
show themselves again. Land 121 Phase 4 is currently<br />
complicated by the continued uncertainty over the Joint<br />
Light Tactical Vehicle program, which has wavered on<br />
and off the chopping block in the US. It is expected that<br />
Australia will make its position on remaining involved in<br />
the program known sometime in early 2012, although<br />
information in recent tender documents calling for<br />
right-hand drive vehicles and AIC plans suggest Australia<br />
remains in the program for now. If Australia pulls out of<br />
the program, the Department of <strong>Defence</strong> will fall back<br />
on the Made and Supported in Australia options and the<br />
‘Market Available’ options, which both represent broader<br />
opportunities for local industry. The recent Government<br />
decision to award the Made and Supported in Australia<br />
option to Thales means that opportunities for South<br />
Australia-based companies could be limited, as Thales<br />
has a strong Bendigo supplier base.<br />
Land 400 will continue to bubble away, with the<br />
project going for fi rst pass approval in early 2013. The<br />
Integrated Project Team may seek more information<br />
to inform the fi rst pass before that time, and it is also<br />
likely that a draft tender will be released at some point<br />
before the open Request for Tender in 2013-14. This<br />
year is the ideal time to begin building the network and<br />
making capabilities known to Primes.<br />
Maritime Projects<br />
The continued delay in projects may see some relief in<br />
the recent release of the RAND report on the future<br />
submarine project, which looks at the possibilities for<br />
local and Military Off The Shelf (MOTS) acquisition on<br />
the project. At this stage, all of the future submarine<br />
work is preliminary and design work, with larger parts<br />
of the project beginning to move.<br />
The continued AWD work will keep contractors<br />
tied to the program busy, but in the absence of<br />
more delays it is likely that new opportunities<br />
could be limited. ASC is currently developing its<br />
‘make/buy’ plan to explore giving more work<br />
to outside contractors, so there will possibly be<br />
$ Billion 2011/12 (Constant Dollars)<br />
In-country Sustainment Total In-country Procurement<br />
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21<br />
Total In Country <strong>Defence</strong> Acquisition and Sustainment Expenditure<br />
more opportunities for companies to tender to<br />
make components for the AWD and Collins Class<br />
sustainment programs.<br />
A major maritime project is the Team Romeo<br />
MH-60R helicopters that was announced in June<br />
2011. There will be ongoing discussion around the<br />
Australian defence industry opportunities on the<br />
program. Whilst still several years away, SEA 1180<br />
(Patrol boat/Mine Hunter/ Hydrographic Survey Vessel<br />
replacement) will be also a topic of discussion at<br />
Pacifi c 2012 and beyond.<br />
Aerospace Projects<br />
Aerospace contracts tend to have long lead times and<br />
require more specialised capabilities, meaning the<br />
opportunities for some companies may be limited.<br />
Early 2012 may see a decision on AIR 9000 Phase 7,<br />
the Helicopter Aircrew Training System. The tender for<br />
this project was released in August 2011. As the initial<br />
operating capability of the project is intended to be<br />
2014-17, it is expected that the decision process would<br />
be shorter. 2012 should also see the release of the AP-<br />
3C capability assurance program (AIR 5276 CAP 2) and<br />
also an upgrade program (AIR 5438 Phase 1) for the<br />
Hawk 127 Lead-in fi ghter trainer, but the preference<br />
for Government would be an off the shelf solution with<br />
minimal engineering opportunities.<br />
Tradeshows<br />
Finally, in 2012 there will be opportunities arising from<br />
tradeshows. Pacifi c 2012 is in Sydney this January and<br />
we will likely hear continued discussion around future<br />
submarines and the continued work on both the Air<br />
Warfare Destroyers and the Landing Helicopter Dock<br />
programs. The next major tradeshow is SimTecT, which<br />
covers the <strong>Defence</strong> simulation and serious games fi elds<br />
as well as other simulation related topics. SimTecT will<br />
be held in Adelaide in June and will attract attendees<br />
from <strong>Defence</strong> as well as attendees from across the<br />
Asia-Pacifi c. Finally, the Land Warfare Conference will<br />
be held again in November, this time in Melbourne.<br />
As well as the vehicle projects, Land Warfare will likely<br />
include a strong presence from Diggerworks as well as<br />
discussion or a decision on the Battlefi eld Command<br />
System (LAND 75) and Night Fighting Equipment<br />
Replacement (LAND 53) projects.
WHEN EVERY<br />
SECOND COUNTS<br />
Saab has extensive experience in supporting defence forces with solutions<br />
designed to meet the need for enhanced operational capabilities and a higher<br />
level of effectiveness.<br />
That’s why when the Australian <strong>Defence</strong> Force had an urgent requirement for a<br />
Counter Rocket, Artillery and Mortar warning system they turned to Saab.<br />
On budget and five months ahead of schedule we had a fully operational<br />
Giraffe Agile Multi-Beam radar system installed in the Australian base at<br />
Tarin Kot in Afghanistan, where it has been providing 360 degree continuous<br />
warnings of incoming insurgent rocket and mortar attacks.<br />
www.saabgroup.com<br />
ANTICIPATE TOMORROW<br />
For rapid surveillance of the entire airspace,<br />
Giraffe AMB is a powerful and cost-effective<br />
3D surveillance radar intended for short and<br />
medium-range air-defence. In addition it can<br />
also warn of incoming rocket, artillery and<br />
mortar rounds.
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SA defence industry sets sail for Pacific 2012<br />
In a collaboration between <strong>Defence</strong> SA and the <strong>Defence</strong><br />
<strong>Teaming</strong> <strong>Centre</strong>, the South Australian defence industry<br />
will be showcased at one of the Pacifi c 2012 major<br />
exhibition stands, “South Australia – The <strong>Defence</strong> State”,<br />
located at stand 5B12 at the Sydney Convention &<br />
Exhibition <strong>Centre</strong> on Darling Harbour.<br />
The “South Australia – The <strong>Defence</strong> State” stand<br />
will host key maritime defence industry companies to<br />
represent the depth of capability in South Australia.<br />
Companies exhibiting on the stand include:<br />
Airspeed<br />
A dynamic Australian company specialising in the<br />
application of composite materials for aerospace,<br />
military and energy-related projects.<br />
Century Engineering<br />
A South Australian company with a reputation for<br />
providing innovative and cost effective engineering<br />
and manufacturing solutions.<br />
Form Cut<br />
A company with proven innovative skills in the design<br />
and manufacture of custom foam inserts, scratch free<br />
dividers and collapsible inserts to suit requirements for<br />
protection, display, export and re-use.<br />
Hill <strong>Defence</strong> Products<br />
A division of Hill Equipment, Hill <strong>Defence</strong> Products focus<br />
on the commercial refrigeration, catering equipment and<br />
Australian <strong>Defence</strong> Credit Union<br />
.<br />
specialised air conditioning needs of the defence industry.<br />
Industry Capability Network (ICN-SA)<br />
ICN promotes South Australian, Australian and New<br />
Zealand industry through import replacement and<br />
opportunities for participation in major projects. It<br />
performs a technical role providing purchasers with a free<br />
sourcing service to identify Australian suppliers capable<br />
of supplying items that would otherwise be imported.<br />
J & H Williams Holdings Pty Ltd<br />
The parent company of Williams Laser Cutting and<br />
Fabrication, Williams is an ISO 9001:2008 certifi ed,<br />
pre-eminent partner for the design, manufacturing<br />
and installation of a wide variety of metal fabrication<br />
solutions spanning many industries.<br />
Morgan Thermal Ceramics<br />
A manufacturer and installer of a wide variety<br />
of engineering solutions using world-renowned<br />
insulation products. These solutions are used by<br />
clients to dramatically reduce energy consumption in<br />
their processes and, in many applications, to reduce<br />
damaging emissions to the environment.<br />
Nova Systems<br />
Nova <strong>Defence</strong> was formed in 2000 with the aim of<br />
providing the Australian <strong>Defence</strong> Force and other<br />
Government agencies with independent and professional<br />
test and evaluation and systems engineering services.<br />
Pacific 2012<br />
25<br />
PMB <strong>Defence</strong><br />
A leading manufacturer of high quality Submarine<br />
Battery Systems. Its state-of-the-art production facility,<br />
coupled with its own chemical lab and research-anddevelopment<br />
facility, makes it one of the most modern<br />
battery production lines of its type in the world.<br />
Prism <strong>Defence</strong><br />
A world-leader in ship helicopter integration.<br />
Helicopters operate to ships in the most demanding of<br />
environmental conditions. Whether it is a small or large<br />
ship helicopter interface trial, consultancy, or full program<br />
management, Prism <strong>Defence</strong> has the skills to safely and<br />
accurately defi ne the limits.<br />
Mincham Aviation<br />
The company caters for the aircraft and defence<br />
engineering industries, specialising in the manufacture<br />
and repair of advanced composite and sheet metal;<br />
welding, machining and heat treatment; cylinder<br />
grinding; painting; and project management.<br />
Other DTC members and SA defence industry exhibiting<br />
at Pacifi c 2012 include:<br />
APC Technology (6G11), ASC (5B9), Babcock<br />
(4W18), BAE Systems Australia (5B2), Daronmont<br />
Technologies (6D11), Kinetic Recruitment (6G9),<br />
Lockheed Martin (4P2), Raytheon (5B17), Saab<br />
Systems (4P18), Wartsila (5M12).<br />
Australian ia iaa n <strong>Defence</strong> Credit Union<br />
.
26 SPECIAL FEATURE PACIFIC 2012 advertorial<br />
Hill <strong>Defence</strong> Products to upgrade Minehunter Galleys<br />
Hill <strong>Defence</strong> Products is proud to announce that it has<br />
commenced work on the upgrading of the Huon Class<br />
Minehunter Galleys for Thales Australia Naval.<br />
Thales Australia has commissioned Hill <strong>Defence</strong><br />
Products to redesign and manufacture an upgraded Galley<br />
layout for the RAN, HUON Class Minehunter ships. The ships,<br />
having been built in the mid 90s with what was considered<br />
at the time as top of the range conventional ovens, are now<br />
to be replaced by Combi Steam ovens which allow a greater<br />
variation of cooking methods. The redesign will also allow<br />
the cooks to free up a little more space in the galley for<br />
storage of utensils.<br />
The loss of the hot plates and griddle from the<br />
current oven will be overcome by the design having made<br />
space for both a new griddle and a custom made hot<br />
plate hob. The biggest challenge is to provide up to date<br />
equipment while staying within the current footprint and<br />
as with many of the RAN ships the equipment has to run on<br />
115v & 440 volt 60 Hz,<br />
Hill <strong>Defence</strong> intent is to modify Commercial off−<br />
the−shelf equipment from 240v 50Hz to 440v 60Hz and<br />
115v 60Hz where required.<br />
Along with modification to the electrical requirements,<br />
Hill will also be modifying the structural components to<br />
ensure they can withstand the stringent requirements<br />
necessary to be deployed on board the minehunter ships.<br />
The first galley upgrade will be available in the first<br />
half of 2012 with installation into the ships as they are made<br />
available at the Navy’s discretion.<br />
Hill <strong>Defence</strong> Products has been supplying the <strong>AD</strong>F<br />
with refrigeration, air conditioning, catering and galley<br />
solutions for over 25 years. Its equipment has been deployed<br />
on the Collins Class submarines, FFG frigates, ANZAC<br />
frigates, Huon Mine Hunters as well as many items on board<br />
the various supply ships. In recent years Hill <strong>Defence</strong> has<br />
successfully designed, manufactured and supplied over<br />
200 military air−conditioning units for both fixed site and<br />
mobile deployment. Hill <strong>Defence</strong> has also designed and<br />
WE TAKE THE HEAT AND STAY<br />
COOL UNDER PRESSURE<br />
• Refrigeration & Air Conditioning heat<br />
transfer systems<br />
• Food & beverage storage, preparation<br />
and presentation equipment<br />
Supplying defence is about performance and for more than<br />
25 years we’ve demonstrated our capability. We designed<br />
and supplied custom defence catering equipment and<br />
purpose built heating and cooling systems.<br />
Whatever defence requirements are in thermodynamic<br />
engineering, food and beverage, or equipment servicing –<br />
Hill <strong>Defence</strong> Products will make the impossible happen.<br />
For further detail please contact Nick Porter on<br />
08 8368 2300 or defence@hill.com.au<br />
Quality<br />
ISO 9001<br />
manufactured a Surgical HEPA filters system for use in soft<br />
shelters, this system believed to be the first of its type in the<br />
world is currently in use by the Army in the Weatherhaven<br />
deployable surgical soft shelters and has been used<br />
successfully in the current conflict zones and disaster relief.<br />
Parent company Hill Equipment is a proud privately<br />
owned Australian company who have been serving both<br />
the Commercial & Military refrigeration and catering<br />
industries since 1977.<br />
Hill <strong>Defence</strong> Products’ new cooking hob design<br />
26 Cavan Road Dry Creek South Australia 5094 • Sales 08 8368 2300 • defence@hill.com.au • www.hill.com.au
Pacific January/February 2012 SA <strong>Defence</strong> Business<br />
advertorial<br />
Williams expands its operations in Australia’s defence industry<br />
J&H Williams P/L ( Williams ) is a third generation family<br />
business in Port Adelaide having a long history spanning<br />
seven decades. From humble beginnings, the company<br />
has evolved into a leading, dynamic engineering firm that<br />
utilizes state of the art equipment and practices to offer a<br />
variety of light engineering services to numerous industries<br />
locally, nationally and internationally.<br />
At its core, the company remains focused on<br />
its primary purpose: to serve people. According to the<br />
company’s Operations Manager, Mark Koennecke, "everything<br />
we do at Williams is about serving people−to improve their<br />
lives and to help them thrive. And we mean everyone whose<br />
lives we affect; our staff, our suppliers, our customers, and<br />
our local, national and international communities. At the end<br />
of the day, people are the core reason we do what we do."<br />
In recent times, the company has focused on serving<br />
the defence and maritime sectors, where it has seen rapid<br />
growth. Among the varied defence and maritime work<br />
it performs, Williams has seen particular growth in its<br />
Advanced Metal Fabrication &<br />
HVAC Solutions for <strong>Defence</strong>,<br />
Shipbuilding & Ship Repair<br />
Since 1946, Williams have been passionate about<br />
working with others to achieve challenging goals. We<br />
love creativity, innovation, technology & problem<br />
solving.<br />
We constantly question the status quo, and we seek out<br />
innovative, elegant and perfect-fit solutions. We adhere<br />
to the world’s best practices in our systems, methods<br />
and industry.<br />
We just happen to design, manufacture and install<br />
lightweight metal components & HVAC systems for<br />
Australia’s <strong>Defence</strong>, Shipbuilding & Ship Repair<br />
Industries.<br />
design and manufacturing of heating, ventilation and air−<br />
conditioning (HVAC) systems.<br />
Williams has been selected, for example, as a<br />
partner in the Sea 4000 Air Warfare Destroyer build<br />
program to supply and manufacture HVAC items for all ASC<br />
manufactured blocks. To date, the company has supplied in<br />
excess of 6,000 items, ranging from structural and acoustic<br />
components to water−tight and non−water−tight ducts, to<br />
spool penetrations, terminals, screens, and plenums and<br />
supports in a myriad of shapes and sizes.<br />
Craig Williams, the company’s third generation<br />
Managing Director, states that "the entire Williams team<br />
is proud of our participation in, and contribution to, the Air<br />
Warfare Destroyer program, and particularly of our proven<br />
ability to provide a product of outstanding quality, whilst<br />
providing cost efficiency and on−time delivery. We sustain<br />
consistent, high−volume production through our innovative<br />
management processes, our people and capabilities. Our<br />
management structure and processes are never static and<br />
2012<br />
XXX 27<br />
continually evolve to suit the needs of our customers, and<br />
always at a minimum standard of ISO 9001:2008. We expect<br />
to see continued, rapid growth in the defence sector in 2012<br />
as a result of the efforts and relationships we’ve built in<br />
recent years."<br />
Williams also credits its success to its commitment<br />
to fostering leadership among its staff and management,<br />
and to its strong relationships, effective partnerships and<br />
alliances in the industry. The company has avidly supported<br />
the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong>, the <strong>Defence</strong> Reserves Support,<br />
and the community at large through its many activities.<br />
More information about Williams can<br />
be found at jandhwilliams.com or by calling<br />
+61 8 8447 1044.
Lou<br />
Surace<br />
<strong>Defence</strong> Coating<br />
Systems
January/February 2012 SA <strong>Defence</strong> Business BUSINESS PROFILE 29<br />
"We work on projects<br />
coating components<br />
for the ASLAV and<br />
M1113 vehicles, as<br />
well as the Collins<br />
Class submarines<br />
and Air Warfare<br />
Destroyer Program"<br />
Niche market in defence paints a<br />
bright future<br />
Two local manufacturers took a business risk more than 15 years ago when<br />
they started <strong>Defence</strong> Coating Systems.<br />
By GRANT SMYTH<br />
Lou Surace is a man with a good sense of humour,<br />
a matter of fact conversational style and extremely<br />
sharp business acumen.<br />
Along with his business partner, Andrew Inglis,<br />
he put that business sense to good use when they<br />
spotted a niche in the protective coating systems<br />
market more than 15 years ago.<br />
At the time, both men were working for<br />
Unistrut Australia, manufacturing a wide range of<br />
metal framing. After becoming dissatisfi ed with the<br />
standard of service available for their work, they<br />
decided they could do the job better themselves –<br />
and so they did.<br />
The result was <strong>Defence</strong> Coating Systems,<br />
which provides services including protective coating,<br />
powder coating, abrasive blasting and sub assembly<br />
work to various industries.<br />
The majority of their work is in <strong>Defence</strong>, but<br />
they have signifi cant involvement in other sectors,<br />
including mining, electronic, medical and OEM.<br />
“We had both been working at Unistrut<br />
Australia for nine years and were having a few<br />
problems with protective coating. So we did 12<br />
months of research and decided to give it a go<br />
ourselves,” Mr Surace said.<br />
“We developed a business plan and<br />
approached the bank. Thankfully they supported us.<br />
I thought they were taking a risk, but 15 years later<br />
we’re still here and going strong.”<br />
The company is doing so well in fact that their<br />
original 710 square metre site has grown to 2,700<br />
square metres and they now employ 25 people.<br />
<strong>Defence</strong> Coating Systems undertakes projects with a<br />
value ranging anywhere from $10,000 to $1million.<br />
“Business is very good,” said Mr Surace. “We<br />
work on projects coating components for the ASLAV<br />
and M1113 vehicles, as well as the Collins Class<br />
submarines and Air Warfare Destroyer Program.<br />
“Through Life Support for the Collins Class and<br />
ASLAV projects give us some security for the future.”<br />
<strong>Defence</strong> Coating Systems’ site at Francis<br />
Road, Wingfi eld, is equipped with eight wet spray<br />
paint booths, two blasting systems, chemical pretreatment,<br />
conveyorised powder coating system<br />
with automatic guns and an online iron phosphate<br />
pre-treatment.<br />
“We’ve recently upgraded our capability to<br />
include our own abrasive blasting,” said Mr Surace.<br />
“We’ve also introduced state of the art paint<br />
and spray gun systems. This has increased our<br />
capability considerably.”<br />
The work is highly skilled, as everything must<br />
be completed to the extremely precise specifi cations<br />
required by their clients so that they exactly match<br />
the vehicles they will be incorporated into.<br />
And while <strong>Defence</strong> Coating Systems don’t<br />
usually coat the actual vehicles, some of the<br />
parts they work on can be several metres long,<br />
for example the periscopes for the Collins Class<br />
submarine.<br />
In the past, <strong>Defence</strong> Coating Systems has<br />
worked on everything from Shorland armoured<br />
vehicles, to Bushrangers, Black Hawk Helicopters, to<br />
the Tactical Air <strong>Defence</strong> Radar System.<br />
Given also their continuing work on the ASLAV,<br />
M1113, Collins Class and AWD projects, <strong>Defence</strong><br />
Coating Systems has an impressive track record.<br />
But what about the future?<br />
“We’d love to win part of the Through Life<br />
Support contract for the Air Warfare Destroyers and<br />
be involved with the Land 121 and future Submarine<br />
and Mining projects,” said Mr Surace.<br />
“Our business has been growing steadily for the<br />
past 15 years but we always need to think ahead.”<br />
And is working in the defence industry a good<br />
place to be?<br />
“Yes, I think so,” said Mr Surace. “As long<br />
as <strong>Defence</strong> can keep a good fl ow of work coming<br />
down the pipeline. That’s going to be crucial for all<br />
SMEs and to maintaining the skills of the Australian<br />
defence community.”
Shane<br />
Fiedler<br />
Maritime<br />
Constructions
January/February 2012 SA <strong>Defence</strong> Business BUSINESS PROFILE<br />
An ocean of opportunities<br />
Good family succession planning has allowed Maritime Constructions to<br />
experience continued growth and make a name for itself in the marine<br />
construction industry.<br />
By GRANT SMYTH<br />
A young, dynamic CEO leads South Australian<br />
company into exciting new era.<br />
It sounds like a cliché, but it’s exactly what is<br />
happening at Maritime Constructions in Adelaide.<br />
The CEO in question is Shane Fiedler, who took over<br />
the reins of the company under the watchful eye of<br />
his father, Garry, in 2009.<br />
But at 28 years of age, you would be mistaken<br />
in thinking that Mr Fiedler is anything but highly<br />
experienced.<br />
In fact, he has been heavily involved in<br />
maritime construction for more than a decade,<br />
working closely with Maritime Constructions’ highly<br />
skilled frontline workforce in every area from boiler<br />
making to dredging.<br />
That hands-on experience, combined with the<br />
tutelage of senior management, has created a chief<br />
executive with the know-how and nous to successfully<br />
lead this proudly South Australian company.<br />
Established in 1996 to meet local demand for<br />
specialist marine services, Maritime Constructions<br />
regularly conducts major projects nationally and<br />
has also established a permanent presence in<br />
Western Australia.<br />
It has come quite a way from the days when it<br />
was known as A&G Marine and operated out of Port<br />
Adelaide. Established in 1990, A&G quickly earned<br />
a reputation as local fabricators who would provide<br />
their customers with exactly what they required.<br />
In 2007, due to the redevelopment of the<br />
inner port, Maritime Constructions relocated to<br />
Techport, the SA Government’s Naval Industry Hub.<br />
They might not have kept the A&G name, or the<br />
location, but they kept a reputation that has allowed<br />
them to grow to the point where the company now<br />
employs 100 people.<br />
This includes a highly skilled ‘front line’<br />
workforce of boiler maker welders, fi tters, carpenters,<br />
crane drivers, riggers, mechanical tradespeople and<br />
many with a slew of marine qualifi cations.<br />
Mr Fiedler sees Maritime Constructions’<br />
consistent growth of its project management and<br />
"Our current focus is<br />
on ensuring we have<br />
the best systems,<br />
engineering and<br />
project management<br />
functions to support<br />
the first class skills<br />
of our front line<br />
workforce"<br />
engineering capacity as crucial to the business’s future.<br />
“Our current focus is on ensuring we have the<br />
best systems, engineering and project management<br />
functions to support the fi rst class skills of our front<br />
line workforce,” he said.<br />
So far, <strong>Defence</strong> has been a relatively small part<br />
of Maritime Constructions’ business. Asked if it is a<br />
good sector to be involved in, Mr Fiedler’s response<br />
is emphatic.<br />
“Absolutely. Most organisations within the<br />
defence industry represent signifi cant repositories<br />
of knowledge and expertise,” he said. “We’ve had<br />
great experiences working with highly qualifi ed<br />
individuals willing to adopt a partnering attitude to<br />
achieve the best possible results.”<br />
Although on major projects the company has<br />
historically worked mostly under the umbrella of<br />
a larger head contractor, Mr Fiedler says Maritime<br />
Constructions wants to assume that leading role<br />
more often in the future.<br />
“The role of head contractor is a space<br />
Maritime Constructions is increasingly able to occupy<br />
itself,” he said.<br />
31<br />
“This is evidenced by the recent completion<br />
of a technically challenging design and construct<br />
project in remote Wyndham, Western Australia. The<br />
construction of the 108 metre Anthon’s Landing Jetty<br />
was a $6 million project.”<br />
That’s an achievement that is well deserved<br />
for a company that has diversifi ed into a full service<br />
marine infrastructure, fabrications and project<br />
management fi rm.<br />
While <strong>Defence</strong> might not yet make up a large<br />
part of Maritime Constructions’ work, the company<br />
has a long history of involvement in the industry.<br />
“We recently undertook the latest round of<br />
dredging works for the ASC North ship lift,” Mr<br />
Fiedler said.<br />
“We’ve performed the task a number of times,<br />
as well as dredging at the Common User Facility<br />
site. Without these essential dredging works it is<br />
impossible for a submarine to dock or undock.”<br />
Even as the organisation was in its infancy it<br />
was engaged by ASC to provide tug and work boat<br />
services during submarine dockings and undockings.<br />
It was also contracted to provide and install shock<br />
trial and trim dive moorings in support of the RAN’s<br />
Collins Class Submarine capability.<br />
But what is the best thing about leading<br />
Maritime Constructions?<br />
“I’ve always been obsessed with the ocean,”<br />
said Mr Fiedler. “I love to fi sh, swim and dive, so to<br />
be able to work in that environment and provide<br />
access for others to do the same is very special.”<br />
And is that a bit of a paradox, to love the<br />
ocean but also to be leading a company that is<br />
involved in substantial marine construction?<br />
“I’d say the opposite actually,” said Mr Fielder.<br />
“I think that’s the reason why we’re exactly the kind<br />
of company who should be entrusted to work that in<br />
that environment.”
32 XXX<br />
<strong>AD</strong> <strong>AD</strong><br />
Phil<br />
Cornell<br />
Cornell Design<br />
January/February 2012 SA <strong>Defence</strong> Business
January/February 2012 SA <strong>Defence</strong> Business BUSINESS PROFILE<br />
Most people at the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> (DTC)<br />
know Phil Cornell as the man from SAGE Automation.<br />
Which would be great, except that since<br />
August 2011 he has turned his focus to working<br />
full time as Managing Director of his own company,<br />
Cornell Design.<br />
Based at Melrose Park, Cornell Design provides<br />
professional, sub-contract mechanical designers and<br />
design solutions for companies who do not have, or<br />
want extra capability, in that area.<br />
Its fi fteen designers, all from trade<br />
backgrounds, can provide this capability either on<br />
site or from their offi ces just off Daws Road.<br />
The team has grown from fi ve to sixteen<br />
(including Mr Cornell) since he bought the rights to<br />
SAGE Automation’s mechanical design arm, SAGE<br />
Design, in April 2010.<br />
Assisting with fi nding a buyer for SAGE Design<br />
while still at SAGE, Mr Cornell knew a good thing<br />
when he saw it and bought the business himself.<br />
Despite having worked indirectly on <strong>Defence</strong><br />
projects including the Air Warfare Destroyer<br />
programme and Collins Class submarines, Mr<br />
Cornell doesn’t categorise his company as <strong>Defence</strong><br />
specialists.<br />
“Our expertise lies in design for manufacture<br />
and that skill set brings as much value to the defence<br />
industry as it does to all of the industry sectors we<br />
service,” Mr Cornell said. “<strong>Defence</strong> counts for about<br />
30 per cent of our business, which we think is the<br />
right level of exposure.”<br />
So, what makes Cornell Design’s service so<br />
special?<br />
“What we provide is a professional,<br />
mechanical design capability to our clients that is<br />
specifi c to their needs at the time when they need it.<br />
Designing for success<br />
Phil Cornell saw a good thing when he decided to buy the mechanical<br />
design arm of his former employer, SAGE Automation, and he hasn’t looked<br />
back since.<br />
By GRANT SMYTH<br />
"I was with SAGE for six years, so a lot of<br />
people still associate me with the company<br />
and the great outcomes we achieved on<br />
<strong>Defence</strong> projects"<br />
Many companies have had to let this capability go as<br />
it expensive to maintain,” Mr Cornell said.<br />
“For many small and medium enterprises<br />
(SMEs) it just isn’t affordable to have a fulltime,<br />
permanent designer, let alone the additional cost of<br />
design software, maintenance and training.<br />
“We can provide design services from our own<br />
offi ces, or more often than not we’ll send a designer<br />
to them for the duration of the design phase of<br />
their project.”<br />
But it isn’t just SMEs who can benefi t from<br />
Cornell Design’s services.<br />
“We also get work from bigger companies<br />
who have a design capability of their own but need<br />
additional capacity during peak loading times, large<br />
projects or even covering leave,” he said.<br />
Mr Cornell believes his business model also<br />
provides sustainability in the design services sector.<br />
“Because we can provide a continuous variety<br />
of interesting and demanding design projects, we<br />
are providing fulltime, permanent work for people<br />
whose skills may well have been lost altogether. I<br />
think that’s critical in ensuring that Australia remains<br />
strong in this skills area.”<br />
And speaking of changing jobs, how does he<br />
cope with still being known as the man from SAGE?<br />
“It’s been really interesting and fun to be renetworking<br />
at the DTC in my own right.<br />
“I was with SAGE for six years, so a lot of<br />
people still associate me with the company and the<br />
great outcomes we achieved on <strong>Defence</strong> projects<br />
including winning the building of the control panels<br />
for the Integrated Platform Management System<br />
(IPMS) with Navantia for the AWD’s.<br />
“I do enjoy networking though, and have the<br />
“Cornell Curry Club”, a regular networking curry<br />
33<br />
lunch to help with that process, so it’s not as painful<br />
as it might be.”<br />
Mr Cornell is a gregarious and approachable<br />
character and he admits that he looks for a similar<br />
personality type in his designers.<br />
“The typical designer is often seen as a bit<br />
introverted, but that isn’t always good when you’re<br />
working on a job with people you don’t know and<br />
really need to be getting involved and asking questions.<br />
“My team is made up of experienced designers<br />
who don’t have any problems doing that. We’ve<br />
just put one of our designers, Gary Hunt, through<br />
the South Australian <strong>Defence</strong> Industry Leadership<br />
Programme (S<strong>AD</strong>ILP) with Gordon Edwards at the<br />
DTC. We will be sending candidates on the course<br />
every year from now on.”<br />
And if there are quiet times at Cornell Design<br />
due to the ebbing and fl owing nature of business?<br />
“If we do have any unutilised time, then we<br />
donate that time to charity by carrying out design<br />
projects for Orana, the organisation that helps South<br />
Australians with intellectual diffi culties,” Mr Cornell<br />
said. “It’s a really worthwhile cause and we love<br />
being able to help them out.”<br />
Not that there are so many quiet times these<br />
days. In fact, it’s busy enough that Mr Cornell has<br />
just appointed his fi rst Chief Financial Offi cer.<br />
“This is initially a part time role, but as the<br />
business grows we anticipate that it will become full<br />
time,” he said.<br />
“I think it’s a measure of our success.”
34 INDUSTRY<br />
New R&D tax <strong>Inc</strong>entive brings greater benefits<br />
By PRICEWATERHOUSE COOPERS<br />
Federal Government support for private sector<br />
innovation in Australia has undergone significant<br />
change in recent months following years of debate.<br />
South Australian defence companies have a long history of innovation with many<br />
companies well placed to access the increased tax incentives available under the<br />
new R&D Tax <strong>Inc</strong>entive. The R&D Tax <strong>Inc</strong>entive is a broad-based, market driven<br />
program accessible to all industry sectors and is designed to encourage more<br />
companies to engage in R&D and thereby boost competitiveness and improve<br />
productivity across the Australian economy.<br />
The new R&D tax incentive has a retrospective start date of July 1, 2011, giving<br />
rise to immediate opportunities for defence companies conducting R&D, including:<br />
potential cash savings of up to 15c for every $1 spent on eligible R&D<br />
activities<br />
refundable benefi t up to 45c for every $1 if in tax losses and less than<br />
$20m turnover<br />
relaxation of the IP rules which provides a greater opportunity to claim<br />
where undertaking R&D on behalf of a foreign related entity, a situation<br />
that is quite common in the defence industry<br />
an increased ability to claim R&D conducted overseas, and<br />
the opportunity to apply for advanced approval of R&D activities.<br />
St John<br />
do a<br />
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good<br />
Show your<br />
support through<br />
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St John is self funded. Find out how your corporate<br />
involvement can asist. Call us on 1300 360 455<br />
www.stjohnsa.com.au<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
Key changes of the new program centre on the type of activities that now<br />
qualify as R&D, in particular the defi nition of ‘core’ R&D activities. Other changes<br />
include the defi nition of ‘supporting’ activities - specifi cally, those activities<br />
relating to the production of goods and services will only be claimable if they are<br />
undertaken for the ‘dominant purpose’ of supporting ‘core’ R&D activities.<br />
PwC National R&D Partner Sandra Mason says: “The new R&D <strong>Inc</strong>entive<br />
will play an important role in ensuring the South Australian defence industry<br />
remains competitive on the global stage.”<br />
“All new R&D claims need to be considered in ‘real time’ to avoid evaluation<br />
of an R&D claim post year-end. This ensures that claimants don’t miss out on the<br />
more generous benefi ts provided by the new program,” Ms Mason said.<br />
Further information on the new R&D Tax <strong>Inc</strong>entives will be available at a<br />
briefi ng session PwC is hosting for <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> members in February.<br />
Breaking down bullying in<br />
the workplace<br />
By PIPER ALDERMAN LAWYERS<br />
For the past few years, there has been a big focus on the risks of bullying in the<br />
workplace. Studies have found that workplace bullying costs the economy $13<br />
billion a year due to decreased productivity, increased absenteeism and staff<br />
turnover.<br />
According to the US Workplace Bullying Institute, Australia falls in<br />
line with other Western countries, with nearly one in six people bullied at<br />
their place of employment. In professions where hierarchical structures lend<br />
themselves to bullying - like the military, police forces and fi re brigades - the<br />
rate is even higher.<br />
Since “Brodie’s” case in 2010, health and safety regulators have<br />
devoted signifi cant attention and resources to warning employers about<br />
the risks of bullying in the workplace. It is also an area of concern for other<br />
regulators, employers and insurers alike.<br />
Safe Work Australia (SWA) has released a draft code that provides<br />
useful guidance on what bullying is, how to prevent it becoming a health<br />
and safety risk and a recommended course of action if a complaint is made.<br />
It is a timely reminder for employers, who should consider their current<br />
processes in light of the draft code.<br />
Broadly speaking the Code is divided into the following parts:<br />
1. Who has duties in relation to workplace bullying?<br />
2. What is workplace bullying?<br />
3. How to prevent workplace bullying<br />
Controlling the risk of workplace bullying requires that an appropriate<br />
workplace bullying policy is in place, effective complaints procedures are<br />
developed, staff are provided information and trained to raise awareness of<br />
bullying and its impact, and are encouraged to report bullying as early as possible.<br />
Piper Alderman has recently assisted many clients with training and<br />
advice on their systems to ensure that they are legally compliant with the<br />
new harmonised health and safety laws, including workplace bullying.<br />
Please contact one of the Piper Alderman team on 08 8205 3315 for<br />
assistance.<br />
For further information on the SafeWork SA Codes of Practice for<br />
bullying in the workplace, visit www.safework.sa.gov.au
AIM SA Graduate School of Business<br />
We congratulate our 2011<br />
Graduates and welcome others<br />
to the AIM SA MBA, designed by<br />
management practitioners for<br />
practical managers.<br />
Julie Bignell<br />
Chief Executive Offi cer<br />
Life’s for Living <strong>Inc</strong><br />
Trudy Boyce<br />
Mayne Proprietary Product Manager<br />
Pharma International<br />
Stuart Cavill<br />
Hydraulics Manager<br />
Cavill Power Products<br />
Jason Holding<br />
EMS Specialist<br />
Cavpower<br />
Lyn Hynd<br />
Business Manager<br />
The Hills Christian Community<br />
Denise Johns<br />
Farm Manager/Owner<br />
Russell Jones<br />
Workshop Manager<br />
Normet Asia Pacifi c<br />
Alan Kennedy<br />
Technical Offi cer - Assets Group<br />
United Water International<br />
Nigel Langford<br />
Operational and Engineering Manager<br />
General Dynamics Land Systems Aus.<br />
Robert Magee<br />
Senior Project Manager<br />
Climat Commercial<br />
Gavin McNeill<br />
Supplier Continuity Representative<br />
GM Holden Ltd<br />
Andrea Mead<br />
Managing Director<br />
Heatile Engineering<br />
Sam Merchant<br />
Australian Human Resources &<br />
Finance Offi cer<br />
Grain Technologies<br />
Jodie Murphy<br />
Human Resource Manager<br />
Next Generation Clubs Australia<br />
Sharyn Simes<br />
Sales Manager<br />
Corporate Express Australia<br />
Chris Stubbs<br />
Director of Finance<br />
Adelaide Convention <strong>Centre</strong><br />
More and more South<br />
Australian professionals are<br />
choosing our Graduate School<br />
to undertake their MBA and<br />
Executive Education.<br />
Find out why at one of<br />
our Information Sessions<br />
Dates<br />
January 10 or March 27<br />
Time<br />
5.30pm–6.30pm<br />
Venue<br />
<strong>Centre</strong> for Management Development<br />
180 Port Road, Hindmarsh<br />
Bookings<br />
Phone (08) 8241 8000<br />
or visit www.aimsa.com.au<br />
aimsa.com.au SOUTH AUSTRALIA
www.prospectroad.com.au<br />
come see the new Prospect Road Village Heart<br />
www.prospect.sa.gov.au
January/February 2012 SA <strong>Defence</strong> Business<br />
Leading young<br />
defence industry<br />
careers<br />
Sumen Rai, Market Analyst at<br />
<strong>Defence</strong> SA, is passionate about the<br />
SA defence industry and developing<br />
our future skills requirements.<br />
A keen astronomer and graduate<br />
of the South Australian Leadership<br />
Program, Sumen knows the value of<br />
networking and provides advice for<br />
building a defence industry career.<br />
What is your current role in the defence industry?<br />
I am a Market Analyst at <strong>Defence</strong> SA, which is the<br />
South Australian Government department charged<br />
with promoting the growth of defence industry in<br />
South Australia. My role sits within the Business<br />
Development team, where I conduct research and<br />
analysis on defence-related market segments and<br />
companies across the land, maritime and aerospace<br />
domains. The aim of my research is to understand<br />
the markets we’re working in so we can promote<br />
South Australia to the Department of <strong>Defence</strong>,<br />
<strong>Defence</strong> Materiel Organisation and <strong>Defence</strong> Primes<br />
as the ideal location for <strong>Defence</strong> projects and<br />
personnel; and to identify capability gaps where we<br />
might be able to attract new companies to the state.<br />
Underpinning all of this, I monitor political, economic<br />
and commercial developments in Australia and<br />
overseas that might affect defence projects and the<br />
defence industry in South Australia.<br />
What is the most enjoyable aspect of your role?<br />
Knowing that my work is contributing to the<br />
development and economic strength of South<br />
Australia is extremely gratifying for me. However, this<br />
is a ‘big picture’ view that I don’t necessarily think<br />
about every day! On a more ‘operational’ level, I love<br />
the interaction with the very smart people that work<br />
in defence companies, both local and international,<br />
and what I learn from them. I’ve been working in the<br />
defence industry for a year, and I’ve learned so much.<br />
What are your career goals?<br />
While I very much enjoy the research and analysis<br />
role, the next step for me is to move into a position<br />
that is more directly responsible for investment<br />
attraction and economic development. Ideally, I<br />
would like to combine my growing knowledge about<br />
the defence industry’s requirements with my former<br />
qualifi cations in education to work on developing<br />
the STEM workforce. The demand for appropriately<br />
qualifi ed people to undertake high-tech work, now<br />
and in the future, is a challenge for many countries<br />
and underpins the sustainability of our industries<br />
Sumen Rai, Market Analyst at <strong>Defence</strong> SA<br />
and economies. It’s a tricky problem, but something I<br />
would relish the opportunity to tackle.<br />
What do you enjoy most about working in<br />
defence industry?<br />
I love the hi-tech nature of the defence industry,<br />
and the exacting standards that have to be met. My<br />
job is not to build and maintain equipment, but I<br />
try to incorporate the defence industry’s (admirable)<br />
expectations of precision into the research and<br />
analysis that I do.<br />
What has been your biggest achievement in the<br />
defence industry?<br />
I’ve only been in the defence industry a short time,<br />
but the achievement I’m most proud of thus far is<br />
completing the South Australian <strong>Defence</strong> Industry<br />
Leadership Program (S<strong>AD</strong>ILP). It’s not just that I<br />
completed the requirements of the program to<br />
graduate, but there’s a real feeling of having ‘arrived’<br />
in the South Australian defence industry with<br />
the professional relationships and friendships I’ve<br />
developed with my fellow S<strong>AD</strong>ILPers.<br />
What are your hobbies outside of work?<br />
Reading, and more reading. I’ll read pretty much<br />
anything! I also have a passion for live music, and<br />
for astronomy. I’ve made several attempts at running<br />
regularly, but I’d rather not talk about that.<br />
YOUNG AMBASS<strong>AD</strong>OR 37<br />
What is your advice for young people looking<br />
to progress into your fi eld of work?<br />
Being successful in an investment attraction/<br />
economic development role is dependent on the<br />
quality of your relationships with relevant people<br />
and the information you have access to.<br />
First, build your networks. At fi rst, this<br />
means meeting people through your co-workers<br />
or managers, and also attending industry events.<br />
Don’t feel shy about asking people questions,<br />
even if you think you sound stupid – it’s better to<br />
get a good understanding of the subject matter<br />
than to make incorrect assumptions and come to<br />
incorrect conclusions. Second, fi nd a mentor who<br />
is experienced in the investment attraction role<br />
and at navigating government procedures, and<br />
try to ‘shadow’ them at meetings to see how they<br />
do business. This will also allow your managers to<br />
feel more comfortable about delegating meetings<br />
with potential investors to you. Third, keep your<br />
knowledge and skills up-to-date. Be familiar with<br />
technological developments (not just in your<br />
industry, because cross-overs happen often), political<br />
developments both locally and internationally,<br />
and take advantage of professional development<br />
opportunities to broaden your knowledge and skills.
SKILLS<br />
38 January/February 2012 SA <strong>Defence</strong> Business<br />
Working with the mechanics of the future<br />
School students and their teachers involved in the<br />
Advanced Technology Industry School Pathways<br />
Program (ATISPP) – funded by the <strong>Defence</strong> Materiel<br />
Organisation (DMO) – had the chance to experience<br />
mechanical engineering studies fi rst hand when they<br />
attended the recent MechExpo 2011.<br />
Held at the Royal Adelaide Showgrounds,<br />
the University of Adelaide’s annual MechExpo is an<br />
exhibition of projects by fourth year students from the<br />
University’s School of Mechanical Engineering. This<br />
year’s event showcased a variety of projects ranging<br />
from a Catapult-Launched Maritime UAV Robot to<br />
an Oceanic Robot-Glider and included displays from<br />
mechanical, aerospace, sustainable energy, mechatronic<br />
and sports engineering.<br />
The 80 Year 10 and 11 students from<br />
secondary schools involved in the Pathways Program<br />
had a unique opportunity to encounter engineering<br />
in practice, to learn what it really means to be an<br />
engineer and to engage with fi nal year engineering<br />
students as they share their experiences. Each exhibit<br />
represented a culmination of a full year’s work and<br />
refl ected the diversity and opportunities available<br />
within the fi eld of engineering.<br />
Gleeson college students interviewing honours students<br />
Unley High School students talking robotic gliders with University<br />
of Adelaide<br />
“Students who attended the expo increased their<br />
knowledge of technology and engineering applications,<br />
concepts and career pathways that will foster their<br />
engagement and achievement in maths and science,”<br />
said ATISPP industry broker Brenton Schulze.<br />
Mr Schulze said that by engaging with the<br />
MechExpo project teams, the secondary students<br />
gained an appreciation of the personal and<br />
professional skills required to be an engineer, including<br />
project management, time management, fi nancial<br />
management, team work and communication skills.<br />
Project topics ranged from system analysis and<br />
design to experimental investigations of fundamental<br />
research problems. Mr Schulze said that some past<br />
student solutions had even led to patentable systems.<br />
The school students also were involved in<br />
recording interviews with the project teams, including<br />
17 university honours students, and producing a series<br />
of short videos using the Apple iPad 2 with a focus on<br />
career pathways.<br />
“Real-world, active learning experiences help<br />
secondary school students to develop an understanding<br />
of engineering. Students are able to interact with<br />
Hamilton students blown away<br />
Year 9 students from Hamilton Secondary College<br />
who designed, manufactured and tested their<br />
own wind turbines have become the fi rst group<br />
of secondary students to display a project at the<br />
University of Adelaide’s 2011 Mechanical Engineering<br />
Expo (MechExpo) for mechanical engineering<br />
honours students.<br />
“Students were set the task to design and<br />
build a model of a wind turbine to be highly effi cient<br />
and produce the highest power output,” said Karen<br />
Palumbo, key teacher of the Advanced Technology<br />
Project at Hamilton Secondary College.<br />
“They worked in small groups to build their<br />
wind turbine in design and technology class, test their<br />
turbines in science and then statistically analyse their<br />
results in maths with the aim of constructing the most<br />
effi cient turbine.<br />
“Students researched horizontal and vertical<br />
axis wind turbine designs and experimented with<br />
two and three-blade models. They produced a series<br />
of annotated sketches to develop their design ideas.<br />
“The key difference between the student turbines was<br />
in the blade design. Students designed an airfoil using<br />
an industry-standard computer-aided design program<br />
and then manufactured their designs with a laser<br />
cutter,” Ms Palumbo said.<br />
The students then tested their wind turbines<br />
in University of Adelaide’s wind tunnel facilities in the<br />
School of Mechanical Engineering.<br />
Sophia Li won the best turbine design,<br />
awarded by the <strong>Centre</strong> for Energy Technology and<br />
the School of Mechanical Engineering. Sophia was<br />
presented with her award at an awards ceremony at<br />
MechExpo in October 2011.<br />
Hamilton is one of 19 schools participating in<br />
the South Australian Advanced Technology Industry<br />
School Pathways program. The project is aimed at<br />
increasing student interest in study and employment<br />
opportunities from science, technology, engineering<br />
and maths at school.<br />
“At the MechExpo, students were asked<br />
questions by many academics, the general public and<br />
other school students – all of which were impressed by<br />
engineers of the future and increase their awareness of<br />
the role of engineers in society,” Mr Schulze said.<br />
“In order to address long-term shortages in the<br />
engineering industry, including the defence industry<br />
in South Australia, we must attract quality students to<br />
engineering disciplines.”<br />
“The Mech Eng Expo allowed me to experience<br />
engineering in a ‘hands on” way. I was inspired by the<br />
projects I saw and now feel really passionate about<br />
mechanical engineering.”<br />
Victoria Langton, Year 10 student,<br />
Henley High School.<br />
“Today’s Mech Eng Expo has added a new<br />
dimension to the career opportunities Henley High<br />
Students may have in the future. It has stressed the<br />
importance of the science/mathematics subjects whilst<br />
still at school.”<br />
Jamal Nordin, teacher.<br />
“The benefi t of today was that it boosted the<br />
idea of becoming an engineer. It’s shown what I could<br />
become in later life.”<br />
Jacob Kostoglou, Year 10 student,<br />
Hamilton Secondary College.<br />
The $5.7 million Commonwealth funded South<br />
Australian Advanced Technology Industry School<br />
Pathways Program aims to boost pathways into<br />
defence industry related jobs. For more information,<br />
please contact Brenton Schulze, industry broker at<br />
brenton.schulze@sa.gov.au or mobile 0448 852 706.<br />
Hamilton Secondary College with the winning<br />
wind turbine design<br />
the students explanations as well as the project itself,”<br />
Ms Palumbo said.<br />
“I believe the project was a huge success and<br />
look forward to involving more students from Hamilton<br />
in the Renewable Energy cross-curricular project in years<br />
to come. The integrated Renewable Energy Project<br />
draws upon the overlying social issue of climate change<br />
and encourages students to look at ways to build a<br />
more sustainable future.”
January/February 2012 SA <strong>Defence</strong> Business SKILLS<br />
Leading from within: personal growth through<br />
S<strong>AD</strong>ILP 2011<br />
S<strong>AD</strong>ILP 2011 graduates Mark Koennecke, of J&H Williams Holdings, and Rebecca Baylis,<br />
of Aeronautical Engineers Australia, examine the relevance of the program from their<br />
own perspective.<br />
In January 2000, best-selling author Jim Collins<br />
assembled a team of analysts to produce an empirical<br />
study of businesses and determine what characteristics<br />
cause a company to go from good to great. The study<br />
focussed not on companies that achieve outstanding<br />
results, but rather those that achieve sustained<br />
remarkable results for extended periods.<br />
Their most unexpected fi nding was that all the<br />
businesses in the case study shared a distinct leadership<br />
style: Level 5 Leadership. A Level 5 leader is an<br />
enigmatic and contradictory blend of personal humility<br />
and professional will, ambitious not for themselves<br />
but for the company. It was these leaders that were<br />
the most important difference between a mediocre<br />
company and one that had achieved greatness.<br />
By its own defi nition, Good To Great, the book<br />
on the fi ndings of Jim Collins in his study, identifi es<br />
that Level 5 is infrequent. However, it also notes that<br />
potential Level 5 leaders exist all around us and we just<br />
need to know what to look for…<br />
So how do we identify and develop Level 5 leaders? In<br />
the defence industry, we look to the South Australian<br />
<strong>Defence</strong> Industry Leadership Program (S<strong>AD</strong>ILP). The<br />
program was developed to provide a succession plan<br />
for current leaders to capture and pass on the extensive<br />
knowledge held within the industry.<br />
As participants of the 2011 program, at<br />
our fi rst session we discussed our expectations of<br />
the program. Many fellow participants similarly<br />
commented: “I’m not sure why I’m here - my boss<br />
thought it was a good idea”!<br />
Over the next nine months, however, it became<br />
very clear that each individual, carefully chosen by the<br />
selection panel from across industry, had been targeted<br />
for their different strengths and weaknesses. Participants<br />
were faced with lively discussions on leadership, the<br />
challenges facing the defence industry, and the future of<br />
South Australia as the “<strong>Defence</strong> State”.<br />
At the monthly Wednesday sessions in the<br />
Naval, Military and Air Force Club of South Australia,<br />
the group discussions were often controversial and<br />
personally confronting for many participants, but it<br />
was here that the group really began to understand<br />
the meaning of leadership in the context of the<br />
defence industry.<br />
Fortunately, the program facilitator Gordon<br />
Edwards from HeavyPoint was at hand to challenge<br />
participants’ thinking and keep the sometimes<br />
wandering discussions on topic - at least, until the<br />
breaks when there were free-for-all discussions!<br />
With an intimate knowledge of <strong>Defence</strong> and the<br />
defence industry, Gordon’s guidance during the<br />
sessions, on the fi eld trips, and also in the invaluable<br />
Gordon Edwards, S<strong>AD</strong>ILP facilitator,<br />
with participant Rebecca Bayliss<br />
"The perspective that young diggers<br />
have on the defence industry, who<br />
are not long out of their teens and<br />
ready to be deployed in the not−too−<br />
distant future, was quite simply<br />
overwhelming and powerful"<br />
one-on-one meetings made the program focused and<br />
targeted, forcing everyone to really consider, “What do<br />
YOU think?”<br />
Most importantly, the 2011 program put<br />
participants in direct contact with the end user,<br />
the Australian <strong>Defence</strong> Force, to gain a greater<br />
understanding of how <strong>Defence</strong> operates. The 2011<br />
program included two overnight fi eld trips; the fi rst to<br />
the 16th Air <strong>Defence</strong> Regiment at Woodside and the<br />
second to 7th Royal Australian Regiment at Edinburgh.<br />
These visits pushed the participants both physically<br />
and mentally. At Woodside we sampled the delights of<br />
ration packs and navigated with a compass (no iPhones<br />
allowed!), and at Edinburgh, observation and memory<br />
recall skills were tested.<br />
The latter visit had soldiers showing much<br />
patience and openness to the endless questions from<br />
us “corporate types”. The perspective that young<br />
diggers have on the defence industry, who are not<br />
long out of their teens and ready to be deployed<br />
in the not-too-distant future, was quite simply,<br />
overwhelming and powerful.<br />
Under a Chatham House Rule Charter,<br />
participants were given unprecedented access to the<br />
insight and advice of guest speakers, senior <strong>Defence</strong><br />
and industry leaders. Some memorable speakers<br />
for 2011 included the S<strong>AD</strong>ILP Patron, His Excellency<br />
Rear Admiral Kevin Scarce AC CSC RANR, Governor<br />
39<br />
of South Australia; Stephen Quinn CSC (Chief, Land<br />
Operations Division, <strong>Defence</strong> Science and Technology<br />
Organisation); Martin Hamilton-Smith MP; Chris Burns<br />
CSC (DTC CEO) and Mark Reynolds (Head, Commercial<br />
Industry Programs, DMO). It was the words of wisdom<br />
from these leaders that not only provoked much<br />
thought and discussion but also gave participants a<br />
perspective of <strong>Defence</strong> and defence industry that they<br />
may have never considered before.<br />
Early in the year, participants were placed in<br />
groups to research, discuss and prepare a concept<br />
paper and presentation. The topics initially seemed<br />
varied and rather vague until teams began research<br />
and the concepts became focused. The end results<br />
were thought provoking concept papers with several<br />
common themes, pitched at a panel of defence<br />
industry representatives in November 2011. Comments<br />
from the panel included the professionalism of the<br />
presenters, and the unique ideas for solutions to issues<br />
facing <strong>Defence</strong> and industry The exercise validated the<br />
development and insight of the participants and also<br />
their ability to infl uence a team of colleagues to work<br />
together effectively towards a specifi c outcome.<br />
At the conclusion of the 2012 program, S<strong>AD</strong>ILP<br />
will have an alumni association of approximately 70<br />
graduates, all with a greater awareness of Australian<br />
<strong>Defence</strong> Operations, the defence industry and their<br />
roles as leaders. Importantly, while solid business<br />
relationships are forged through S<strong>AD</strong>ILP, the program<br />
is not a networking program, nor is it a management<br />
program. S<strong>AD</strong>ILP is a philosophical journey into the<br />
personal essentials of great leadership and, as the<br />
challenges of Force 2030 unfold, it will be our industry’s<br />
future leaders that infl uence not only South Australia’s<br />
economic progress, but also the delivery and support of<br />
our Nation’s military capability.<br />
These emerging leaders need to be Level 5<br />
Leaders; able to not only achieve results but be able<br />
to sustain our industry at levels of greatness. The<br />
signifi cance and validity of S<strong>AD</strong>ILP is refl ected through<br />
the election of Darryl Holt of Raytheon and Craig<br />
Williams of J&H Williams Holdings, both 2011 S<strong>AD</strong>ILP<br />
graduates, to the DTC Board of Directors.<br />
We highly recommend the S<strong>AD</strong>ILP to business<br />
leaders and owners, CEOs and executive level staff within<br />
the defence industry, as well as those dynamic, emerging<br />
leaders who, when brought together for this program,<br />
will have a vibrant, crucial and unforgettable experience.<br />
So if you think you are up for the challenge, we<br />
encourage you to contact Kerryn Smith at the <strong>Defence</strong><br />
<strong>Teaming</strong> <strong>Centre</strong> on 08 8260 8907 for full details on the<br />
2012 S<strong>AD</strong>ILP intake and application criteria.
40 SKILLS<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
Men are from Mars, Women are from WiDRI<br />
By HOLLY CARUSO<br />
At a recent AMCHAM lunch in Adelaide, a panel of four<br />
industry leaders (three male) from Santos, BAE Systems<br />
Australia, Deloitte and GHD discussed gender equity<br />
in the workplace. The discussion was hard hitting and<br />
addressed the key benefi ts of increasing the amount of<br />
women in their industries: bottom line results.<br />
The Co-Chair of the Premier’s Council for Women,<br />
Kate Gould, provided the introductory address for the<br />
event and stated clear indicative facts, the latest research<br />
shows that companies employing a diverse workforce<br />
retain employees longer, have better bottom line results<br />
and increased shareholder satisfaction.<br />
In addition, research commissioned by the<br />
Council in 2009 showed that although women in<br />
South Australia are among the best educated in the<br />
world, more than 108,000 women in SA want to<br />
work or work more.<br />
We are a State with an overwhelming workforce<br />
of intelligent women yet in the defence industry, only<br />
21.9 per cent of the workforce are women. While there<br />
are no statistics on women in leadership positions in<br />
defence industry, experience tells us that percentage<br />
would be much smaller. We are under utilising a highly<br />
available and capable workforce that can readily assist in<br />
fulfi lling projected skills shortages in the future.<br />
Throughout 2011, the <strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />
and the Resources and Engineering Skills Alliance<br />
coordinated the Women infl uencing <strong>Defence</strong> and<br />
Resources Industries (WiDRI) program. The resources<br />
and mining industry has an even more unbalanced<br />
gender distribution, with just 8.3 per cent of the<br />
workforce female.<br />
The intention of WiDRI was to support the roles<br />
and responsibilities of women as directors and managers,<br />
coaches and mentors and industry advocates. While this<br />
objective was well and truly achieved through training,<br />
inspirational speakers and the development of Thought<br />
Leadership groups, the outcome not required but<br />
accomplished, was the development of a network of<br />
truly passionate, intelligent and outstanding women who<br />
have the drive and motivation to make a difference in<br />
the defence and resources industries.<br />
While there was discussion about the factors and<br />
reasons why women generally aren’t achieving the top<br />
leadership positions in organisations, the atmosphere<br />
wasn’t one of complaint, but rather action and<br />
anticipation of a future where women can contribute<br />
their intelligence and valued perspectives to the benefi t<br />
of their organisations and ultimately the industries.<br />
The women on WiDRI are an engaged group,<br />
looking to make a difference in 2012. However, a<br />
key change to the WiDRI program in the second<br />
year of the program will be the engagement of men.<br />
As stated succinctly by Ms Gould, “If Australia is<br />
to position itself as a global leader in business, we<br />
need to start having frank and fearless discussions<br />
about gender and the workforce,” she said. “Men in<br />
leadership positions need to take action.”<br />
A key requirement of WiDRI in 2012 will be the<br />
engagement of men on the program to understand<br />
the issues of gender equity in the workplace and to<br />
action a workforce diversity policy in their organisation<br />
that targets gender equity with numerous benefi cial<br />
outcomes, including a better bottom line. In 2012, both<br />
men and women will be from WiDRI.<br />
How hard is it to train your staff?<br />
Finding employees that are a good match for your<br />
team can be a hard process, especially when you<br />
have a specifi c skill set in mind for them. It can be<br />
easier to up skill your existing team members to meet<br />
your requirements - after all, you already know these<br />
staff and their capabilities and you know that they<br />
understand you needs and they have staying power.<br />
But training staff is an expensive exercise, what<br />
with the cost of training and the time required off<br />
job to complete the training. And where can you fi nd<br />
a reliable company to supply the training?<br />
Many employers aren’t aware that there is a<br />
Federal Government program in place that provides<br />
funding to employers that will cover the costs of<br />
training. Yes – your business can receive up to $4000<br />
of Federal funding for each eligible employee that<br />
you place under a contract of training.<br />
Not wanting to miss the bandwagon, the<br />
State Government will also allow your business to<br />
be exempt from payroll tax and Work Cover levy for<br />
each member of staff for the entire length of the<br />
contract.<br />
With more than 500 qualifi cations on scope<br />
here in South Australia, you could up skill your staff<br />
in leadership, management, engineering and much<br />
more. The State Government has announced that<br />
they have now extended funding from Certifi cate<br />
II and III to now include all qualifi cations up to the<br />
Advanced Diploma level. There has never been such<br />
a great time to up skill your staff.<br />
With this latest announcement from the<br />
Government, the amount of companies putting staff<br />
through contracts of training is going to increase<br />
greatly. So why not jump on board and get your<br />
team trained up to increase the effectiveness of your<br />
business.<br />
Interested in knowing more?<br />
Mission Australia Apprenticeship Solutions can advise<br />
you on the needs and requirements for your business<br />
and administer all the required paperwork to help<br />
the process progress as smoothly as possible. They<br />
can also advise of Registered Training Organisations<br />
available to deliver the training to your staff and<br />
will help you to claim all of the incentives that you<br />
are eligible for. This service is offered to you free of<br />
charge. To contact Mission Australia, phone Melanie<br />
Richards on 0448 653 913 or email her at<br />
richardsm@missionaustralia.com.au.<br />
Emerging Leaders<br />
provide defence<br />
industry a new<br />
perspective<br />
As part of the South Australian <strong>Defence</strong> Industry<br />
Leadership Program (S<strong>AD</strong>ILP), participants are<br />
grouped to work together on concept papers that<br />
provide research and analysis on issues pertinent to<br />
the defence industry. SA <strong>Defence</strong> Business will be<br />
providing executive summaries of the 2011 concept<br />
papers, full versions of the concept papers are on the<br />
DTC website www.dtc.org.au/aspx/sadilp.aspx<br />
<strong>Defence</strong> Industry Sustainability –<br />
Implications to SA <strong>Defence</strong> Industry in Relation<br />
to Commercial Off the Shelf (COTS), Military off<br />
the Shelf (MOTS) and Indigenous Development<br />
P. Bates (<strong>Defence</strong> SA), G. Doyle (Kadego),<br />
R. Emanuele (DTC), M. McLaren (Babcock),<br />
R. Proctor (Australian Aerospace), A. Young<br />
(Lockheed Martin).<br />
Over the next two decades a signifi cant<br />
proportion of the specialist platforms and systems<br />
operated by the Australian <strong>Defence</strong> Force (<strong>AD</strong>F) will<br />
be replaced or modernised in pursuit of the capability<br />
objectives outlined in the 2009 <strong>Defence</strong> White Paper.<br />
Over the next 10 years alone, the <strong>Defence</strong> Capability<br />
Plan outlines requirements for 140 projects with<br />
associated Government expenditure of approximately<br />
$153 billion in 2010 prices. With this increased<br />
expenditure, there is a heightened need to ensure<br />
that procurement risks are minimised.<br />
Based largely on the recommendations of<br />
the Kinnaird Review in 2003 and, more recently,<br />
the Mortimer Review in 2008, Government<br />
has subsequently implemented a program of<br />
procurement reforms aimed at ensuring the<br />
cost effective delivery of future <strong>AD</strong>F capability<br />
requirements. Moreover, the 2009 <strong>Defence</strong> White<br />
Paper has highlighted how the Government will<br />
use Military Off The Shelf (MOTS) and Commercial<br />
Off The Shelf (COTS) products and procurements<br />
as benchmarks for future acquisitions. Whilst<br />
COTS and MOTS purchases seemingly provide Risk<br />
reduced Value for Money procurements - there<br />
are impacts to Australian Indigenous <strong>Defence</strong><br />
Capability and Sustainability which must be<br />
examined and considered as part of the overall<br />
Value for Money Proposition.<br />
This concept paper highlights the impact<br />
to the sustainability of the Australian and South<br />
Australian defence industry as a result of pervasive<br />
<strong>Defence</strong> Off The Shelf (OTS) procurement as opposed<br />
to indigenous development.<br />
The following areas are examined to<br />
determine the impact to defence industry<br />
sustainability:<br />
What determines Australian <strong>Defence</strong> capability,<br />
The South Australian defence industry model,<br />
A Study of industry impacts from pervasive OTS<br />
procurement, and<br />
A case study – Land 121 Phase 4
January/February 2012 SA <strong>Defence</strong> Business A DAY IN THE LIFE OF...<br />
A day on the job of a nation building project<br />
ASC Production Technician Paul Minerds has an enviable job working on the Collins Class<br />
submarine, and soon, the Air Warfare Destroyer.<br />
By HOLLY CARUSO<br />
ASC Production Technician Paul Minerds<br />
The traffi c on Victoria Road leading to the Techport<br />
defence precinct is a lot busier these days for ASC<br />
Production Technician Paul Minerds.<br />
Born and bred in the area, Mr Minerds has<br />
experienced the growth of defence industry in South<br />
Australia’s maritime precinct and can now claim to<br />
work on one of the nation’s biggest <strong>Defence</strong> projects,<br />
the Collins Class submarines through-life support.<br />
Recruited during ASC’s “100 workers in 100<br />
days” campaign in mid-2011, Mr Minerds is one of<br />
the current 255 production workers at ASC assigned<br />
to the Air Warfare Destroyer (AWD) program.<br />
Currently seconded to the Collins Class<br />
program, Mr Minerds is one of the lucky few who<br />
will have experience working on both submarines<br />
and destroyers, a skill set not many in the country<br />
can claim.<br />
Mr Minerds describes his current role as “an<br />
opportunity like no other”.<br />
“South Australia is the only place you can do this<br />
work and come mid-2012, I’ll be working with over<br />
150 other electricians on AWD, nothing compares!”<br />
As an electrician, Mr Minerds’ career has taken<br />
him all over the country. After completing a four<br />
year apprenticeship at a local sparky company in<br />
Ethelton, Mr Minerds travelled far and wide, working<br />
for One Steel in Whyalla and on water purifi cation<br />
plants in Brisbane and Fremantle.<br />
The pull of working on a Nation building<br />
<strong>Defence</strong> project eventually saw Mr Minerds back in<br />
South Australia and applying to ASC for a position<br />
on AWD.<br />
While awaiting his cycle of work on the AWD,<br />
Mr Minerds is part of a team of 15 electricians<br />
working on the refurbishment and commissioning of<br />
the diesel generators on HMAS Sheean, the Collins<br />
Class submarine nearing completion of its Full Cycle<br />
Docking (FCD).<br />
“Completing an FCD for a submarine is<br />
around two years of hard work, seeing Sheean in the<br />
water for testing has been a big accomplishment,<br />
very satisfying,” he said.<br />
It seems the only unsatisfying part of Mr<br />
Minerds’ job is working in the bilge, the area at the<br />
very bottom of the submarine.<br />
“It’s pretty crammed in there,” says Mr<br />
Minerds, understandable given that he stands<br />
around six foot tall.<br />
For all work outside the bilge, Mr Minerds has<br />
a very positive outlook on his job. Starting each day<br />
41<br />
at 7am as part of the morning shift, the manager<br />
outlines the day’s tasks for the team and they “set to<br />
work” on the submarine, completing their tasks.<br />
“The difference between this job and my other<br />
jobs as an electrician is the high standard of quality<br />
controls and documentation required,” Mr Minerds said.<br />
“The work we do can affect people’s lives – at<br />
ASC, safety and quality is our priority for all of the<br />
work we do.”<br />
Building and maintaining a submarine has<br />
a complexity similar to that of a space shuttle.<br />
In comparison to a Boeing 777, a Collins Class<br />
submarine has 68 more systems, 1,100 more<br />
suppliers and a whopping 400,000 more parts to<br />
assemble – not to mention a price tag almost three<br />
times as much as the Boeing aircraft.<br />
Maintaining a Collins Class submarine is a role<br />
for the best of the best, exactly the type of worker<br />
ASC recruit.<br />
“Working on a submarine, you spend more<br />
time doing a good job, you do your best,” Mr<br />
Minerds said.<br />
And what makes his job so exciting? Simply, “I<br />
work on Collins Class submarines!”
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January/February 2012 SA <strong>Defence</strong> Business CONTRACT NEWS 43<br />
Codan wins Cambodian<br />
counter−mine contract<br />
<strong>AD</strong>ELAIDE electronics group Codan Limited is supplying<br />
405 landmine and unexploded ordnance detectors<br />
donated by the Japanese Government to help ongoing<br />
land clearance operations in Cambodia.<br />
The fi rst shipment of the latest model F3 detectors<br />
left Adelaide in November 2011 for Cambodia, with<br />
a second shipment, including spare parts for older<br />
detectors, sent in December 2011.<br />
The General Manager of Codan subsidiary<br />
Minelab, Hugh Graham, said Minelab has been<br />
providing countermine detectors to military,<br />
commercial and humanitarian aid organisations<br />
around the world since 1998.<br />
“Cambodia has an estimated four to six<br />
million mines and unexploded ordnances scattered<br />
around the country that are remnants from wars<br />
from the 1960s to the mid 1990s,” Mr Graham said.<br />
“Every year hundreds of people are killed by<br />
these devices, while many more are maimed. In fact,<br />
Cambodia has one of the highest rates of amputees in<br />
the world per head of population.<br />
“However, casualty rates have been steadily<br />
falling as a result of clearance efforts over the years.<br />
“Since 1998 our detectors have helped to identify<br />
and remove about half a million mines, making large<br />
areas of the country safe.”<br />
Minelab’s countermine detectors are<br />
manufactured in Adelaide and exported to more than 55<br />
countries around the world where mines are a problem.<br />
These include Angola, Sri Lanka, Vietnam, Mozambique,<br />
Bosnia and Afghanistan.<br />
Codan Limited was also recognised at the 49th<br />
Annual Australian Export Awards in early December<br />
2011, winning the export awards in the Information and<br />
Communication Technology Category. The prestigious<br />
awards recognise companies that have performed<br />
strongly in the global market.<br />
SAGE Didactic wins AWD and<br />
LHD Contracts<br />
SAGE Automation’s business focus in defence<br />
continues to pay off, with the award of two recent<br />
contracts to SAGE’s training arm, SAGE Didactic.<br />
SAGE Didactic is a national leader in the training<br />
of people working with industrial control and<br />
automation technology across all sectors of industry.<br />
SAGE will design and supply complete PLC<br />
training rigs for the Air Warfare Destroyer. The rigs,<br />
using COTS equipment used on the actual ships, will<br />
be used by both industry and the Navy to train workers<br />
in the Programmable Logic Controllers and Human<br />
Machine Interface technology. The training rigs will be<br />
located at the Maritime Skills <strong>Centre</strong> at Techport.<br />
The second contract will involve the supply<br />
of a complete training solution to BAE Systems for<br />
the Landing Helicopter Dock program. The contract<br />
includes supply of a training aid as well as a purpose<br />
written training system, providing a totally integrated<br />
learning system.<br />
Saab Systems on deck with LHD and ANZACs<br />
Saab to provide training for the Canberra class Landing Helicopter Docks<br />
SAAB will provide training systems for Australia’s<br />
largest ships under a new contract signed with<br />
BAE Systems Australia. Under a change in Saab’s<br />
development contract for the project, Saab will<br />
provide operator and maintainer training systems for<br />
the Canberra class Landing Helicopter Docks (LHDs).<br />
The systems, a derivative of the trainer used for<br />
the ANZAC Class ships, will be supported using the<br />
9LV combat management system. The 11 systems<br />
will be fi tted into a shore-based training facility that<br />
will be operated by BAE systems Australia.<br />
“Training is part of our comprehensive support<br />
and sustainment services for our customers,” said<br />
Saab Systems Managing Director Richard Price.<br />
“Saab’s extensive experience in training which<br />
extends to both Army and Naval domains makes<br />
us the most suitable provider of these training<br />
capabilities.”<br />
Work has already commenced on this twoyear<br />
stage of the project, with a follow-on contract<br />
for the delivery of training expected to be negotiated<br />
this year.<br />
On top of Saab’s success with the LHDs, the<br />
Government approved an upgrade of all ANZAC<br />
Class frigates to the full Anti-ship missile <strong>Defence</strong><br />
Jumbo Vision supply ETSA with control<br />
MAWSON Lakes based Jumbo Vision International has<br />
been awarded a contract to supply and install control<br />
room furniture for SA Electricity Provider ETSA Utilities.<br />
The three stage project will commence mid 2012 and<br />
will take approximate two months to complete.<br />
Jumbo Vision manufacture full scale models of<br />
console designs, giving ETSA the opportunity to view<br />
and manipulate consoles to try different layout options.<br />
The General Manager of Jumbo Vision<br />
International, Lena Kimenkowski, said that the contract<br />
win was exciting for the company.<br />
“We see ourselves as part of the development<br />
process so it’s an endorsement for our methodology, as<br />
well as our products,” Ms Kimenkowski said.<br />
standard. Saab will work with BAE Systems Australia<br />
and CEA Technologies on the upgrade.<br />
The Royal Australian Navy will receive a full<br />
suite of upgrades, including an enhanced 9LV<br />
combat management system, phased array radar<br />
and other sensors. The system was tested earlier in<br />
the year on the HMAS Perth, where it performed<br />
excellently in several trials. The same system will now<br />
be applied to the rest of the ANZAC fl eet.<br />
Australian Chief of Navy, Vice Admiral Ray<br />
Griggs said the tests proved that the new system<br />
could defend the ship from modern cruise<br />
missile attack.<br />
Chairman of Saab Technologies Australia<br />
Gunilla Fransson said, “The modernisation of the<br />
entire ANZAC class is testimony to the future-proof<br />
9LV combat management system and Saab’s combat<br />
system engineering capability in Australia.<br />
”This fully integrated combat system is now<br />
one of the most modern CMS in the world. It gives<br />
the ANZAC ships a fully fl exible capability to utilise<br />
all its weapons, sensors and countermeasures<br />
simultaneously.”<br />
“Jumbo Vision is the best company for this<br />
project as we have the experience to design, deliver<br />
and support these kinds of complex ventures. We<br />
understand the issues facing big organizations these<br />
days and know that the ‘hot buttons’ can vary between<br />
stakeholders within a project group.<br />
“We are also 100 per cent Australian so we<br />
understand the positives as well as the limitations of<br />
undertaking big projects in Australia – from working<br />
in the different time zones, to the logistics of getting<br />
technical components to Australia from anywhere in<br />
the world,” she said.
44 MEMBER NEWS<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
NDY staffer nation’s first female with SCEC endorsement<br />
Roshan John of NDY<br />
ENGINEERING consultancy Norman Disney & Young<br />
(NDY)has added a new fi rst, having the fi rst female<br />
consultant in Australia to achieve Security Construction<br />
Equipment Committee (SCEC) endorsement.<br />
Melbourne-based Security Services Consultant<br />
Roshan John recently achieved this high level security<br />
clearance – an endorsement requiring stringent criteria<br />
are met – unaware of her unique status.<br />
“It wasn’t until I recently attended a SCEC<br />
function that I was informed of my status as the fi rst<br />
woman in Australia to be awarded SCEC endorsement,”<br />
Ms John said.<br />
“It is a signifi cant honour for me personally and an<br />
important coup for NDY as an organisation, particularly<br />
Smart Fab sees the light with Pelican<br />
Pelican RALS 9430 lighting the way for Smart Fabrication<br />
AN innovative new lighting system developed by<br />
Adelaide’s Pelican Products is now helping Port<br />
Adelaide-based Smart Fabrication to see clearly and<br />
work more effi ciently on site.<br />
Smart Fabrication now relies on the Pelican<br />
RALS 9430 light, a self-contained, portable,<br />
given our ever increasing specialised <strong>Defence</strong> and<br />
Government work.”<br />
SCEC is the interdepartmental committee<br />
responsible for the evaluation of security equipment<br />
for use by Australian Government departments and<br />
agencies. SCEC reports to the Attorney General’s<br />
Protective Security Policy Committee which was<br />
established by the Australian Government to develop<br />
and establish guidelines for protection of Australian<br />
Government resources. Satisfying the requirement for<br />
practical on-site experience and consultancy expertise<br />
was an important component of Ms John achieving<br />
SCEC endorsement. The endorsement allows her to<br />
work on high-level security <strong>Defence</strong> and government<br />
infrastructure jobs, such as ATO projects.<br />
“Being a SCEC endorsed consultant allows you to<br />
take a much more holistic view of a facility. You really drill<br />
the architecture and services on all the design elements<br />
and materials used and not just electronic security but<br />
also physical structure security considerations, right down<br />
to the fi ner details such as glass, wall fi nishes and even<br />
blinds,” she said.<br />
With a team of highly specialised SCEC<br />
consultants, NDY has been busy with a number of<br />
<strong>Defence</strong> tenders. In a highly competitive market, SCEC<br />
endorsement will provide a major fi llip for future high<br />
security work, and Ms John looks forward to these<br />
opportunities.<br />
“Ensuring that all elements have been done to<br />
perfection and satisfying client expectations is important<br />
to me personally and an engrained aspect of the NDY<br />
culture. I‘m one of those lucky people that relish and<br />
enjoy every aspect of their work life.”<br />
maintenance free, silent-running and recyclable<br />
lighting solution.<br />
Site work is a large part of the Smart<br />
Fabrication business – on a recent project<br />
welding large diameter pipes 36ft inside and 15ft<br />
underground, it required a product that was not<br />
Plasteel SA continues to excel<br />
DTC member Plasteel SA were announced as the<br />
winner of an SAI Global Systems Excellence Award<br />
at a ceremony in November 2011. The award, in<br />
the category Quality Management Systems – Small<br />
Business, recognises Plasteel as having an exemplary<br />
commitment to not only sustaining bottom line results<br />
but to superiority of service, commitment to customers,<br />
ethical behaviour and environmental sustainability.<br />
Plasteel SA Managing Director Darryl<br />
O’Shaughnessy said that the award recognised the<br />
outstanding contribution of his staff.<br />
“I wish to send my thanks to all my staff for<br />
the tremendous effort that they put in on a daily<br />
basis, particularly to Suzy Hall for her incredible<br />
efforts not only over the last six years with us, but<br />
more importantly over the last 12 months to help us<br />
in gaining the ISO9100 Aerospace Accreditation on<br />
its fi rst attempt, something that has not been done<br />
before,” Mr O’Shaughnessy said.<br />
“We are extremely proud and honoured to<br />
accept this award.”<br />
Suzy Hall from Plasteel SA accepting the Business Excellence<br />
award at the SAI Global gala dinner<br />
only durable and reliable but could last for a solid 10<br />
hours a day.<br />
Pelican’s LED-based light met the needs of<br />
Smart Fabrication, contributing to the extremely high<br />
pass rate on all welds done. As the RALS are designed<br />
without glass, there is no chance of breakage, and<br />
being self-contained units, there is also no need for<br />
workers to carry or assemble a jumble of kit on site - a<br />
major draw card for Smart Fabrication to the Pelican<br />
Products unit.<br />
“The advantage of the rotating head and<br />
adjustable stand allows us to view every detail<br />
of each weld while still working. The extra-long<br />
battery life means we can keep going all day to help<br />
our customers meet their deadlines,” says Smart<br />
Fabrications Managing Director Simon Kennedy.<br />
“Smart Fabrications have really put these lights<br />
to the test with the long hours and tough conditions –<br />
we’ve even had one run over by a customer’s bobcat.<br />
“The proven strength, reliability and durability<br />
of the Pelican has kept us coming back.”<br />
Mr Kennedy said the new lighting solution also<br />
eliminated the need for electrical cables, as well as<br />
noise, hazardous fuels, fumes and heat issues.
January/February 2012 SA <strong>Defence</strong> Business MEMBER NEWS 45<br />
Prism wins Export Award<br />
PRISM <strong>Defence</strong> was awarded the National Small to Medium Services Export Award<br />
2011 by Austrade and the Australian Chamber of Commerce and Industry. The<br />
judges of the awards were impressed by Prism’s strong export focus, their sound and<br />
targeted export growth strategy, and the company’s innovative use of technology in<br />
meeting customers’ needs. Prism <strong>Defence</strong> was also awarded the Business SA Twenty<br />
Eleven Export Awards: Small to Medium Services for the second consecutive year.<br />
The company had an eventful 2010-11, increasing their export earnings by 36<br />
per cent to more than $3 million and conducting night vision goggle fl ight testing<br />
with the Swedish Navy. The company has also moved to a new offi ce in Melbourne<br />
Street, North Adelaide. Prism CEO Greg Ward said that the move would support the<br />
company’s increased sales and staff growth.<br />
“This move has greatly improved our infrastructure, working environment<br />
and productivity,” said Mr Ward. The company has also recently opened an offi ce in<br />
Scandinavia, to better serve European customers.<br />
Prism also recently signed a contract with the New Zealand Navy to conduct<br />
trials aboard the HMNZS Otago and the HMNZS Canterbury in 2012-13, using the<br />
NZ Super Sea Sprite Helicopters. During the trials, Prism will develop Ship Helicopter<br />
Operating Limits, which defi ne relative wind speed, ship motion and aircraft weight<br />
limitations for safe operation of the choppers aboard ships.<br />
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Customs Agency Services (CAS) have worked closely with the South Australian <strong>Defence</strong><br />
and Aerospace industries since 1976.<br />
Since then we have successfully imported and exported billions of dollars worth of<br />
<strong>Defence</strong> and Aerospace products, on time and on budget.<br />
As South Australia’s leading International Freight Forwarder and Customs Broker, not only<br />
are we proud of the past and current success of the South Australian <strong>Defence</strong> Industry,<br />
but are excited about the future opportunities the <strong>Defence</strong> sector offers our state.<br />
CAS would like to thank all of our <strong>Defence</strong> and Aerospace customers for their past<br />
support and look forward to our continued growth and partnerships.<br />
Capable. Competitive. Committed.<br />
Call us today. Phone: 08 8354 2221<br />
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Prism <strong>Defence</strong>’s<br />
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NewSat satellite transformation<br />
NewSat’s Jabiru-1 Satellite will provide Ka-band coverage to the military and<br />
enterprise across the Middle East and Asia.<br />
NEWSAT is Australia’s largest specialist satellite communications company, delivering<br />
Internet, voice, data and video communications via satellite. In the past 12 months,<br />
NewSat has continued its success from the Teleport business and extended its growth<br />
into the satellite arena, achieving major milestones with the Jabiru Satellite Program.<br />
NewSat has acquired seven premium orbital slots from KyproSat, which have received<br />
Cypriot regulatory approval and signed US$279 million in binding pre-launch<br />
contracts on the Jabiru-1 satellite with TrustComm, 3A Technology and Quicklink<br />
Communications. More recently, NewSat has announced Lockheed Martin as Jabiru-<br />
1’s manufacturer and is scheduled to launch with Arianespace. NewSat is on target to<br />
launch Australia’s fi rst independently owned commercial satellite, Jabiru-1 in 2014.<br />
NewSat’s core Teleport business has continued its success, signing 175 highgrade<br />
enterprise and government contracts across the oil, gas, mining, construction,<br />
government and military sectors. As NewSat prepares to enter a new phase of<br />
growth, the company has added two experienced satellite executives to an already<br />
cohesive management team. David Ball was appointed Chief Technology Offi cer and<br />
Michael Hewins joined NewSat as Chief Operating Offi cer.
46 MEMBER NEWS<br />
IN BRIEF<br />
A new Force for General Dynamics<br />
GENERAL Dynamics announced in early November 2011 that it would acquire<br />
Force Protection for $US360 million. Force Protection will become part of General<br />
Dynamics Land Systems.<br />
Chairman and CEO of Force Protection Michael Moody, said: “After<br />
careful consideration of the strategic direction of Force Protection, our board<br />
decided that a sale to General Dynamics would maximise value for our<br />
stockholders. With their armoured vehicle business, General Dynamics will be<br />
able to pursue opportunities that we could not have pursued as a stand-alone<br />
company.”<br />
The proposed acquisition has been approved by the board of directors of<br />
each company. Under the terms of the merger agreement, General Dynamics will<br />
commence a tender offer for all of the outstanding shares of common stock of<br />
Force Protection.<br />
Alfon’s CEO is still going strong at 88<br />
ALFON Engineering CEO Fred Moore has a long history with defence - and still turns<br />
up to work today at the age of 88 with his passion and drive as strong as ever.<br />
Mr Moore served in the Royal Merchant Navy in World War II, before immigrating<br />
to Australia and founding the company in 1964. Originally in the automotive<br />
sector, Alfon has expanded its scope to the mining and defence industries,<br />
working with BAE Systems on the M113AS Armoured Personnel Carrier upgrade.<br />
Alfon has also recently upgraded its quality systems to ISO 9001: 2008.<br />
“The quality of local manufacturing is second to none,” says Mr Moore.<br />
“[Local industry] is more than capable of supporting big defence and<br />
mining projects.”<br />
APC committed to quality<br />
APC Technology has been recognised for its ongoing commitment to maintaining<br />
a high standard of quality. The company was recently presented with a certifi cate<br />
from quality system provider SAI Global for 15 years of certifi cation within the SAI<br />
Global ISO 9001 quality system. APC has now held the ISO9001 standard since<br />
August 1995.<br />
The quality system underpins all of APC’s business processes, including<br />
sales, document and data control, manufacturing, training and design review. The<br />
process also includes a continuous review cycle and processes for redressing noncompliant<br />
areas.<br />
Steamatic cleaning up SA defence industry<br />
STEAMATIC Adelaide has introduced two unique cleaning services to the<br />
defence industry.<br />
Steamatic’s dry-ice blasting is suited to a number of applications, including<br />
the cleaning of electronic equipment and corroded or contaminated surfaces.<br />
The non-invasive technique removes surface contaminants leaving the underlying<br />
surface undamaged. The non-toxic technique is safe to use in confi ned areas, as<br />
well as needing minimal cleanup and causing limited downtime.<br />
Steamatic has also launched the BioSweep decontamination system,<br />
which kills over 99 per cent of pathogens and eliminates odours within a<br />
few hours. Requiring no chemicals, scrubbing or cleanup, BioSweep renders<br />
contaminated areas ready to use in no time. As a new DTC member, Steamatic<br />
is making its mark, then cleaning it, in the defence industry.<br />
St John SA celebrates the contribution of volunteers<br />
MORE than 100 St John members were recognised for their contribution to the<br />
South Australian community at the annual St John’s Awards Day ceremony at<br />
Government House in October.<br />
In 2010/11, St John fi rst aid volunteers attended 4,627 events and treated<br />
9,632 people at community events. Community Care volunteers provided<br />
community support and friendship to 579 seniors and young people with a<br />
disability. In total, 2068 volunteers gave 132,935 hours of their time to the<br />
community – which equates to 15 years of volunteering in one year.<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
Max Crane and Equipment caps off a busy year<br />
MAX Crane and Equipment Hire had a busy 2011, which has placed the company<br />
stronger than ever at the start of 2012. The company, based in Port Augusta, has<br />
expanded its workforce to over 50 employees, refl ecting a steady growth and<br />
equipping Max Crane and Equipment Hire for the challenges of the future.<br />
The company took delivery of four new cranes, including a 400 tonne<br />
all-terrain Leibherr model, the largest SA owned crane of its type. The Leibherr is<br />
equipped with a 60m main boom and an 84m luffi ng fl y, allowing a 100m maximum<br />
radius.<br />
Max Cranes achievements were recognised during the year, winning two<br />
awards at the Port Augusta Outstanding Business Awards. As well as winning the<br />
Trades and Industry category, Max Cranes won the overall Most Outstanding Business<br />
award, recognising its hardworking, dedicated team and strong business planning.<br />
New faces at DSIC<br />
Max Crane’s<br />
newest purchase<br />
is the largest<br />
crane of its type<br />
in South Australia<br />
THE <strong>Defence</strong> Systems Innovation <strong>Centre</strong> (DSIC) has recently gone through further<br />
transformation with the appointment a new Operations Manager out of Canberra,<br />
Mr Niall Fay, a new Business Development Manager, Mr David Searles and a new<br />
Project Manager, Mr Gary Lyons, who is new to Australia having recently emigrated<br />
from the UK.<br />
DSIC CEO Sanjay Mazumdar said the appointments will help DSIC move into<br />
the future<br />
“The team I have put together is passionate, proactive and dedicated to ensuring<br />
DSIC focuses on the strategy and I am confi dent we will take DSIC to the next level in<br />
order to support <strong>Defence</strong> and most importantly the warfi ghter,” he said.<br />
In other major organisational changes, DSIC has also recently acquired the<br />
NICTA suite of defence short courses and has appointed Ms Lynne McKeown, fresh<br />
from NICTA, as the Training Coordinator.<br />
DSIC was established as a national centre to help <strong>Defence</strong> and industry<br />
to address some of the modern <strong>Defence</strong> force’s challenges by drawing upon the<br />
advanced research capability in systems engineering, network communications and<br />
information management in the University of South Australia, University of Adelaide,<br />
University of NSW and the Queensland University of Technology.<br />
The new team at DSIC with Minister Jason Clare
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Technology
48 EVENTS<br />
January/February 2012 SA <strong>Defence</strong> Business<br />
S<strong>AD</strong>ILP Class of 2011<br />
The SA <strong>Defence</strong> Industry Leadership Program<br />
(S<strong>AD</strong>ILP) graduates of 2011 concluded the year with<br />
a well-deserved networking event and graduation<br />
ceremony at the Naval, Military & Air Force Club on<br />
November 9, 2011.<br />
Selection of participants for this year’s<br />
program will be fi nalised by March, with S<strong>AD</strong>ILP<br />
2012 commencing in April. Anyone interested in<br />
taking part in the program should nominate with the<br />
<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong> to secure a place on this<br />
very popular program.<br />
For nominations, please contact Kerryn Smith<br />
on (08) 8260 8907.<br />
DTC Monthly Networking Events<br />
The November 2011 DTC Monthly Networking<br />
Event at the Naval, Military & Air Force Club was<br />
sponsored by Gordon Edwards, of Heavypoint,<br />
and included an inspirational briefi ng on how<br />
successful companies have signifi cantly and<br />
sustainably increased their value by transforming<br />
leadership thinking and behaviours.<br />
At the same venue in December, the End<br />
of Year networking event, sponsored by J&H<br />
Williams, saw a record-breaking attendance<br />
of over 160 people. Gary Bettcher from<br />
Leadership Management Australia and Sumen<br />
Rai from <strong>Defence</strong> SA got into the Christmas<br />
spirit, taking out the ‘best tie’ and ‘best<br />
dressed’ awards respectively.<br />
1: Kerryn Smith of the DTC addressing the<br />
S<strong>AD</strong>ILP graduates<br />
2: The S<strong>AD</strong>ILP class of 2011<br />
3: S<strong>AD</strong>ILP participants in action on the 2011<br />
fi eld trip to RAAF Base Edinburgh<br />
4: Participants relaxing in the Offi cers Mess<br />
after a hard day on the fi eld trip<br />
1 2<br />
3<br />
The DTC holds its networking event on<br />
the third Thursday of each month, with an<br />
average 80 members from the defence industry.<br />
To sponsor an event, please contact<br />
Tracy Pierce on 08 8260 8189.<br />
1: Trevor Duell, DTC; Sarah Thomas, Paxus and<br />
Natalie Inglis, Paxus.<br />
2: Andrew Baker, IOCANE and Gail Jackman,<br />
University of South Australia.<br />
3: Wendy Matthews, Priority Management and<br />
Wendy Perry, Workforce BluePrint.<br />
4: Craig Williams and the team from J&H<br />
Williams Holdings, sponsor of the December<br />
networking event.<br />
1 2<br />
3 4<br />
4<br />
Upcoming events<br />
DTC Business Development Breakfasts<br />
February 7, March 6<br />
7.30am – 8.30am<br />
Café Palazzo, 89a The Parade, Norwood<br />
DTC Members only<br />
The DTC hosts a breakfast on the fi rst Tuesday of each month to<br />
offer members an informal setting for the discussion of current<br />
defence industry business development news and networking<br />
opportunities. For more details, or to sponsor a breakfast, contact<br />
Tracy Pierce on 08 8260 8907.<br />
DTC Monthly Networking Events<br />
January 19<br />
5pm – 6.30pm<br />
Mawson Lakes Hotel, 10 Main Street, Mawson Lakes<br />
Register at www.mybookingmanager.com/jan2012<br />
Cost: $22 (inc GST) DTC Members, $33 (inc GST) Non-Members<br />
The DTC monthly event provides the defence industry with an<br />
opportunity to meet other DTC members, share experiences and<br />
identify opportunities.<br />
Proudly sponsored by <strong>Defence</strong> Health.<br />
February 16<br />
5pm – 6.30pm<br />
Naval, Military & Air Force Club<br />
111 Hutt Street, Adelaide<br />
Register at www.mybookingmanager.com/feb2012<br />
Cost: $22 (inc GST) DTC Members, $33 (inc GST) Non-Members<br />
Proudly sponsored by J&H Williams<br />
March 15<br />
5pm – 6.30pm<br />
Innovation House<br />
Technology Park Conference <strong>Centre</strong>, Mawson Lakes<br />
Register at www.mybookingmanager.com/mar2012<br />
Cost: $22 (inc GST) DTC Members, $33 (inc GST) Non-Members<br />
Proudly sponsored by Ingenia.<br />
DTC Annual <strong>Defence</strong> Industry Dinner & Awards Ceremony<br />
Thursday May 31<br />
7pm – 11.30pm<br />
Adelaide Entertainment <strong>Centre</strong>, Port Road, Hindmarsh<br />
Register at www.mybookingmanager.com/dtcdinner2012<br />
Cost $165 DTC members, $200 Non Members. Tables of 10 can<br />
also be purchased.<br />
Proudly brought to you by J&H Williams, this is a prestigious<br />
event for the SA defence industry. With over 400 attendees from<br />
defence industry SME’s and Primes, Department of <strong>Defence</strong>,<br />
DMO and State and Federal Government, the event is a key<br />
occasion for industry networking.<br />
Foundation Daw Park Annual Ball<br />
Saturday April 21<br />
7pm – 11.30pm<br />
Adelaide Festival <strong>Centre</strong>, King William St, Adelaide<br />
Tickets at www.foundationdawpark.org.au or phone 8275 1039<br />
Cost $150 per person including three-course meal, fi ne<br />
wines and entertainment.<br />
2012 is the 70th anniversary of South Australia’s iconic Repatriation<br />
General Hospital. To celebrate this milestone, the ball will be themed<br />
“Celebrating 70 years at the Repat”. Join in a night of ceremony,<br />
entertainment and fi ne dining. All proceeds help Foundation<br />
Daw Park to support medical research into conditions that affect<br />
Veterans, as well as providing support to the Repat Hospital.
................................................<br />
<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />
Member list<br />
ICT/electronics<br />
Access Datacom<br />
Aerostrip Australia<br />
AFC Group<br />
APC Technology<br />
Associated Electronic Services<br />
Aviation Management<br />
Avinet<br />
CISCO<br />
Codan Limited<br />
Codarra Advanced Systems<br />
Computer Sciences Corporation (CSC)<br />
Control Devices Australia<br />
Dataline Visual Link (DVL)<br />
Deadline<br />
Dedicated Systems Australia<br />
DESA Australia<br />
Dimension Data<br />
Fibre Composites<br />
Gryphon Technologies International<br />
IMAGINiT Technologies<br />
IMP Printed Circuits Pty Ltd<br />
Ingenia Pty Ltd<br />
Intec Consulting Group<br />
Integrity ICT<br />
Iocane<br />
IQMS Distribution<br />
Jumbo Vision International<br />
Legend <strong>Defence</strong> Industries<br />
Lencom Antennas<br />
Logi−tech Pty Ltd<br />
Multifid Technology Australia<br />
National Instruments<br />
NewSat<br />
Nextgen Networks<br />
Nilsen (SA) Pty Ltd<br />
Project<strong>Centre</strong>.net<br />
Rafael Advanced <strong>Defence</strong> Systems Ltd.<br />
Rutledge Engineering<br />
Shark Shield Pty Ltd<br />
SMR Technologies<br />
SMS Management & Technology<br />
Supplied Solutions<br />
Sydac Pty Ltd<br />
Systech Consultants<br />
Ultra Electronics Australia<br />
Vipac Engineers & Scientists Ltd<br />
Creating exceptional results through your people.<br />
infrastructure<br />
API Security<br />
Badge Constructions<br />
Bardavcol<br />
Baulderstone<br />
Candetti Constructions<br />
CTG Security Matrix<br />
GBA Projects<br />
Hardy Milazzo Architecture & Interior Design<br />
<strong>Inc</strong>onmat Australia<br />
John Holland Pty Ltd<br />
Maritime Constructions<br />
Samaras Group<br />
Templeton Constructions<br />
logistics − transport<br />
AirRoad<br />
Customs Agency Services<br />
DHL Global Forwarding<br />
Diamond Bros<br />
MTU Detroit Diesel Australia<br />
NOW Global Logistics<br />
Port of Melbourne Corporation<br />
UTI<br />
Proud member of DTC<br />
Gary Bettcher<br />
0409 694 036<br />
www.LMA.biz/DTC<br />
manufacturing manufacturing (continued)<br />
Adelaide Inspection Services<br />
AFE Slipway<br />
AFL Services<br />
Agars Industrial<br />
Airspeed<br />
AJ Distributors<br />
Alfon Industries Pty Ltd<br />
All Welding & General Engineering<br />
Aluminium Dynamics<br />
ArmourWorks International Ltd<br />
ASC<br />
B L Shipway & Co<br />
Bluebird Rail Operations Pty Ltd (BRO)<br />
Brice Metals<br />
Brister & Co<br />
Broens Industries<br />
Byron Aviation<br />
Calbic<br />
Century Engineering<br />
Civil & Mechanical Services<br />
Crane Services<br />
Crisp−Air<br />
De Bruin Group ( De Bruin Engineering)<br />
<strong>Defence</strong> Coating Systems<br />
Dematec Group<br />
Diemould Tooling Services<br />
Dunlop Foams<br />
Embedded Logic Solutions<br />
Engraving Services Co<br />
Ferrocut<br />
Fire System Services<br />
Form Cut Pty Ltd<br />
General Dynamics Land Systems − Australia<br />
(GDLS)<br />
Glassbead Technology Pty Ltd<br />
Heavy Automatics Pty Ltd<br />
Hill <strong>Defence</strong> Products<br />
Holbri Engineering<br />
Horwood Bagshaw<br />
Hypac Pty Ltd<br />
Industrial Gaskets<br />
Integra Packaging<br />
J&H Williams Holdings P/L<br />
Krueger Engineering<br />
Levett Engineering Pty Ltd<br />
Lincoln Plastics<br />
MacTaggart Scott Australia<br />
Max Crane & Equipment Hire<br />
Mincham Aviation<br />
Morgan Thermal Ceramics<br />
Pacific Marine Batteries<br />
Pelican Products Pty Ltd<br />
Performance Metals Australia<br />
Peterson Industries Pty Ltd<br />
Pirtek (Adelaide) Pty Ltd<br />
Plasteel S.A.<br />
Priority Engineering Services<br />
Process Rubber and Plastics<br />
Sage Automation<br />
SCF Group<br />
SKF Australia<br />
SMART Fabrication Pty Ltd<br />
Snap−on Industrial Tools Australia<br />
Static Engineering Pty Ltd<br />
Steamatic Adelaide<br />
Stramech Engineering<br />
Technoweld<br />
T−Mag<br />
Toolcraft Pty Ltd<br />
Torque Industries<br />
Tyco Flow Control<br />
United Fasteners SA Pty Ltd<br />
Wartsila Australia Pty Ltd<br />
ZF Lemforder Australia Pty Ltd<br />
Zip Industries
................................................<br />
<strong>Defence</strong> <strong>Teaming</strong> <strong>Centre</strong><br />
Member list continued...<br />
Advantage SA<br />
Australia−Israel Chamber of Commerce<br />
Australian Organisation for Quality (SA) <strong>Inc</strong>.<br />
Beca Consultants<br />
British High Commission<br />
BurnGlint<br />
CatOps<br />
CGD Enterprises<br />
City of Tea Tree Gully<br />
Commonwealth Bank<br />
Crawford Legal<br />
<strong>Defence</strong> Health<br />
<strong>Defence</strong> Reserves Support SA<br />
<strong>Defence</strong> SA<br />
Deloitte<br />
Department of Education and Children’s<br />
Development<br />
DHC Group Accounting and Migration<br />
Drake International<br />
Enterprise Connect<br />
Equity and Advisory<br />
Ernst & Young Transaction Advisory Services<br />
Ferguson Project Management Services (FPMS)<br />
Finite IT Recruitment<br />
Finlaysons<br />
Hawker Britton Group<br />
Hays Recruitment<br />
Heavypoint Pty Ltd<br />
Hughes Public Relations and Communication<br />
Counsel<br />
Human Interest Partners Pty Ltd<br />
Icon Recruitment<br />
Innovate SA<br />
Integrated Financial<br />
Interwork Limited<br />
Inventure Partners<br />
Kinetic Recruitment<br />
Lawson Risk Management<br />
Madderns Patent & Trade Mark Attorneys<br />
Manpower Services<br />
MBA Financial Strategists<br />
Migration Solutions<br />
Minter Ellison<br />
Mission Australia Apprenticeship Solutions<br />
MPS People Solutions<br />
National Australia Bank SA − Business Division<br />
Creating exceptional results through your people.<br />
professional services professional services (continued)<br />
Norman Disney and Young<br />
Norman Waterhouse Lawyers<br />
Paxus<br />
Peter Kittle Motor Company<br />
Peter Page Holden<br />
Piper Alderman Lawyers<br />
PricewaterhouseCoopers<br />
Priority Management South Australia<br />
RedBikini<br />
St John Ambulance Australia<br />
Talent International<br />
Technology Industry Association (TIA)<br />
Terra Firma Pty Ltd<br />
The PAC Group<br />
Thinc Projects<br />
Westpac Banking Corporation<br />
Willis Australia<br />
Workforce Blueprint (Wendy Perry and<br />
Associates)<br />
registered training organisations<br />
ACG Global<br />
Action Workforce − Ashley Institute of Training<br />
Adelaide Training & Employment <strong>Centre</strong> (ATEC)<br />
Australian Driver Trainers Association<br />
Australian Institute of Business<br />
Australian Institute of Management (AIM)<br />
Capability Resources<br />
Carnegie Mellon University<br />
CITC<br />
<strong>Defence</strong> Systems Innovation <strong>Centre</strong> (DSIC)<br />
Flinders University<br />
Insight International Consultancy<br />
KneeDeep Project Management<br />
Leadership Management Australia Bettcher<br />
Norgrove Training<br />
Professional Driver Trainers Association<br />
Specialist Training Australia<br />
St Patrick’s Technical College Northern Adelaide<br />
TAFE SA− Adelaide North<br />
University of Adelaide<br />
University of South Australia− <strong>Defence</strong> and<br />
Systems Institute<br />
Acacia Research<br />
Aeronautical Engineers Australia<br />
Aurecon Australia<br />
Australian Aerospace<br />
Babcock Pty Ltd<br />
BAE Systems Australia<br />
Cadgile<br />
CEA Technologies Pty Ltd<br />
Cobham Aviation Services Australia<br />
Cornell Design<br />
Daronmont Technologies<br />
Department of <strong>Defence</strong>− <strong>Defence</strong> Science and<br />
Technology Organisation (DSTO)<br />
Eptec<br />
Frazer− Nash Consultancy<br />
GHD Pty Ltd<br />
Intercad<br />
Jenkins Engineering <strong>Defence</strong> Systems<br />
Kadego<br />
Kilic Engineering<br />
Leed Engineering & Construction Pty Ltd<br />
Lockheed Martin Australia Electronic Systems<br />
Pty Ltd<br />
Nova Systems<br />
Prism <strong>Defence</strong><br />
Raytheon Australia Pty Ltd<br />
Rylac<br />
Saab Technologies Australia Pty Ltd<br />
Waterfall Solutions<br />
Proud member of DTC<br />
Gary Bettcher<br />
0409 694 036<br />
www.LMA.biz/DTC<br />
systems engineering DTC new members: Nov/Dec 2011<br />
Access Datacom Pty Ltd<br />
Bluebird Rail Operations (BRO)<br />
Brice Metals NewSat<br />
DHL Global Forwarding<br />
Hardy Milazzo Architecture & Interior Design<br />
NewSat<br />
Returned and Services League of Australia (SA)<br />
Steamatic Adelaide<br />
DTC charities of choice<br />
Foundation Daw Park<br />
Legacy Club of Adelaide<br />
Returned and Services League of Australia (SA)
January/February 2012 SA <strong>Defence</strong> Business<br />
OUT OF HOURS 51<br />
Ian’s dream ride<br />
He may not have Italian heritage, but Ingenia’s<br />
Business Development Manager, Ian Biggs, is<br />
passionate about the iconic Italian Vespa scooter.<br />
Ian has owned four Vespas over the past<br />
decade and his latest pride and joy, a geared red<br />
Vespa 150 Super is a mean little machine which<br />
travels “like a dream” on the open road, even as<br />
far as Mt Gambier, 500km away.<br />
In fact, his scooter gained recognition at this<br />
year’s National Scooter Rally in Perth as winner of<br />
the ‘Best Vespa’ award for pre-1970 models.<br />
Most weekends, Ian and his fellow Vespa<br />
Club members escape hectic city life on their<br />
classic scooters and hit the highway.<br />
“We do say we’re a bit like the modern<br />
‘Mod’ scene,” jokes Ian.<br />
“I think everyone can relate somewhere in<br />
life to owning a Vespa,” Ian says. “You do have<br />
to laugh at yourself.”<br />
A boiler maker by trade, Ian worked at the<br />
Australian Submarine Corporation until 15 years<br />
ago. Ian spends much of his spare time at home<br />
bringing vintage scooters back to life in his<br />
converted back shed, dubbed his “man cave”.<br />
His latest work in progress is a complete re-build<br />
from spare parts of a 1969 model Lambretta.<br />
His love affair with scooters has also<br />
become a family affair – wife Donna also rides<br />
a Vespa and Ian already takes fi ve-year-old<br />
daughter, Jaime-Lee, for spin in the backyard.<br />
“Once you’ve got the disease, it’s hard to<br />
get rid of it.”
<strong>AD</strong><br />
Ashley Hayes<br />
Modra Hayes Pty Ltd<br />
1 Independent Survey, Newfocus , November 2010<br />
www.innovatesa.com.au<br />
“Innovate SA is a<br />
South Australian<br />
business builder.”<br />
Innovate SA helps businesses like Modra Hayes,<br />
based on Yorke Peninsula, to achieve sustainable<br />
growth in national and export markets.<br />
In fact, in a recent survey 74% of company CEOs<br />
attributed ‘very positive/positive impact on<br />
business growth’ to working with Innovate SA.<br />
In Modra Hayes experience, Innovate SA has<br />
given them the tools and knowledge required<br />
to attract investors and has helped them to<br />
understand and apply for grants that they have<br />
successfully been awarded – having a huge<br />
impact on their business.<br />
“The Business Advisors at Innovate SA have been<br />
a great source of advice and knowledge and<br />
have been an invaluable resource.”<br />
Ashley Hayes & Simon Modra,<br />
Joint Managing Directors – Modra Hayes<br />
If you’re interested in sustainable businesses<br />
growth, call 8113 0700 or visit our website.<br />
very positive / positive impact<br />
on ‘business growth’ 1<br />
74%<br />
86%<br />
87%<br />
98%<br />
very positive / positive<br />
impact on ‘growth strategy’ 1<br />
positive impact on<br />
‘business practices’ 1<br />
highly satisfied with<br />
‘business advisory assistance’ 1