After almost four years of crippling uncertainty caused by limited defence budgets, Australia's military aerospace sector is hoping for a partial turnaround in conditions this year with a series of major Australian Defence Force competitions totalling A$2.9 billion ($1.72 billion) looming.
In parallel, the Australian Department of Defence is to shortly release a blueprint for the rationalisation of the domestic military aerospace sector, starting with its rotary-wing aircraft programmes.
A national aerospace industry "action agenda" is also in the process of being finalised by the Australian Department of Industry, Science and Resources, covering the civil and military markets. The strategy is giving high-level priority to the development of aerospace exports from Australia, targeting local company roles in global supply chains on key international civil and military programmes. Australia's planned Lockheed Martin F-35 Joint Strike Fighter acquisition has been identified as a major focus in this effort.
The action agenda is also expected to recommend on potential roles for local industry in areas such as large aerostructures design and manufacturing, unmanned air vehicle design and development, simulation, and air traffic management systems.
Aerospace industry optimism on the outlook for the Australian military market is focused on a projected general upturn in defence spending for the sector over the next two years.
Key military aerospace projects now being prepared for tender include the Royal Australian Air Force's in-flight refuelling aircraft requirement, worth around A$1.7 billion, and the Australian Army's competition for 12 new troop lift helicopters, valued at A$764 million. A competition is expected in the second half of 2003 for the army's tactical unmanned air vehicle programme, which is valued at A$110 million.
The army's replacement surface-to-air missile system requirement is also expected to be the subject of an invitation to register interest in coming months as a pre-qualification for a request for tender process in 2004. The project is valued at A$300 million.
According to Department of Defence projections released last June, new outlays for aerospace platforms are expected to average $400 million a year to 2004-5, with a major rise over 2005-7 peaking at just below A$1.6 billion a year by 2008.
Defence requirements now account for around 33% of all Australian aerospace industry turnover via new acquisitions and through support requirements for existing platforms.
Total outlays on military aerospace capabilities, including acquisitions, averaged around A$1.3 billion a year in 2001-2, but are expected to rise to over A$2.8 billion a year by 2010-1.
Government papers say "defence recognises that this spending pattern [which is not smooth] will shape the [domestic] aerospace marketplace".
The action agenda and the DoD's own aerospace rationalisation blueprints pursue long-term strategic relationships with a limited number of suppliers. According to the action agenda, this approach "will align industry capacity to defence's long-term demand, remove fragmentation of key industry capabilities, and facilitate platform commonality through the long-term relationship with a single prime".
Source: Flight International
