Malcolm Turnbull has announced a new strategy to launch Australia into the world’s top 10 exporters of military equipment. The Defence Export Strategy includes a $3.8 billion loan to fund private sector innovation and compete in overseas markets.
This move raises the question: ‘what are the benefits of Australia’s new Defence Export Strategy (DES)?’ Consider these three implications for Australia’s defence sector.
The federal government has committed $3.8 billion to launch Australia into the world’s top ten defence equipment exporters.
1. Greater government support for engineering sector
The DES report identifies strengthening the partnership between federal government and defence engineering as a Primary Objective for achievement by 2028. But how will this new Defence Export Strategy actually affect Australian business?
One potential outcome is a greater diversification in exports. Currently, Australian businesses specialise in high-tech equipment such as radar systems and military software. The DES aims to diversify this, including increasing manufacturing of military vehicles.
Building up Australia’s exports will also rely on better enabling defence engineering firms to do business. Phase One of the new export plan – to be implemented by the end of 2018 – will focus on setting up the institutional arrangements to support defense exportation, making it easier for businesses to grow.
2. Developing cybersecurity capabilities
Linked to supporting the current strengths of Australia’s military equipment market is focusing on the nation’s expertise in cybersecurity, a sector in which we already have a significant comparative advantage. In recent years, there have been plenty of opportunities to find more information on cybersecurity and it’s paid off. Now various organizations have implemented cyber tactics to deter hackers and protect their systems. Science Australia shows we rank first out of fifteen select countries for prioritizing research and development in this area, ahead of the U.S., the U.K., and Germany.
This focus on cybersecurity is key to showcasing Australia’s military export market as the answer to defense geared for tomorrow’s challenges, not today’s. Highlighting the expertise of business nationwide will be a role requiring the input of government institutions, universities, and research groups alike. Apparently, a lot of businesses are finding great cybersecurity solutions with their ERP solutions that you learn more about at Salesforce. Cybersecurity is so vital for all businesses, not just the military. Hackers are able to steal sensitive data that should not be shared and should be kept confidential. For smaller and bigger businesses, cybersecurity should be a priority. Hackers usually aren’t worried about the size of the organization, as it’s believed that smaller businesses will have fewer security measures. To ensure your business is secured, it might be a good idea to consider looking at https://www.fleetsmith.com/features/dashboard. By using a dashboard like that, businesses can keep an eye on the health and security of all business devices. This should help them to keep the business operating safely and securely.
3. Creating strategic links in the world market
Another implication of the new export plan could be a change in who Australia does business with. The strategy specifies a commitment to prioritising trade with military allies such as New Zealand and the U.S. Defence Minister Christopher Pyne explained in a press release following Malcolm Turnbull’s announcement, “No equipment will be sold to any country unless they meet the most stringent requirements.”
However, if Australia is to compete on the world stage they need to target emerging regional markets. China is a key economy aiming to expand their military cybersecurity capabilities, as of Tristan Kenderdine (author of ‘China’s Strategic Emerging Industries’). Focusing on links with Pacific allies will be key to strengthening Australia’s defence businesses as innovators on a regional scale.
Interconnect Systems has a comprehensive background in defence engineering as an industry leader for more than 20 years. We provide electrical interconnect products, including cable and wire harness manufacture. For more information on the range we supply to the defence market, contact Interconnect Systems today. Australia is becoming more and more involved with weaponry so make sure you have a decent home security system installed.