PwC's Aerospace and Defence Trends 2017 report noted that a vital focus in the coming year should be an attentiveness to building relationships with defence agencies around the world. This assessment is still vital 12 months on, which makes this year's edition of the Eurosatory Exhibition more timely than ever.
What is Eurosatory?
Started in 1967 as a way for businesses in the defence industry to meet and exchange ideas, the biennial Eurosatory event has grown from strength-to-strength since, becoming internationally recognised in the defence sector world calendar.
In fact, 2016's exhibition saw nearly half of all visitors travel from 140 locations worldwide. Additionally, around 65 per cent of exhibitors came from international organisations, showing the globally interconnected nature of the defence industry.
Why does this matter to the Australian defence industry?
The Department for Defence has organised a mission of over 50 Australian businesses to attend Eurosatory 2018, as well as visit key sites of major sector names such as BAE Systems. This represents an opportunity to analyse and learn from some of the trends that will impact enterprise in the defence sector going forward.
Time review research and development spending
In its Aerospace and Defence Trends 2018-19 report, PwC noted that the largest businesses in these sectors are among the lowest investors in research and development (R&D). In fact, defence spending trailed automotive companies' investment by more than $85 billion USD in 2017 as of the same source.
The only way forward is to invest further in R&D projects. Backing innovative businesses who contribute to developing new interconnect products and solutions is a must if Australia want to become defence sector market leaders worldwide.
Taking Australian defence global
Eurosatory 2018 will also be an excellent way to expand the contact book of any innovative Australian defence business. A stronger international defence community means a more robust local market, as can be seen from the recent SEA5000 Future Frigate Project.
With the bidding process drawing to a close imminently, all three contenders – Navantia, Fiancantieri and BAE Systems – all have headquarters in Europe. The SEA5000 Future Frigate Project is expected to generate billions for local industry in South Australia, and shows the value in partnering with industry experts in engineering advanced solutions for the defence market.
The takeaways for Australian defence businesses
The Eurosatory Exhibition is an excellent chance to table these ideas and decide on solutions that can help Australian defence businesses reach their full potential, both at home and internationally.
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. We're proud to develop the most advanced solutions to suit the clients we serve, placing research and knowing our industry at the heart of everything we do.
For more information on the range we supply to the defence market, contact Interconnect Systems today.