DEFENCE  industries can be one of Australia’s catalysts for national innovation and collaboration.

That was the verdict when senior leaders from across Australia’s industry, defence and academic communities met at the inaugural Securing Australia’s Defence Industry Forum in Melbourne recently. They confirmed the need for greater collaboration to unlock the full potential for defence as a driver of innovation, employment creation and growth. 

The Securing Australia’s Defence Industry Forum, co-convened by innovative technology leader Lockheed Martin and Ai Group, addressed key challenges in transforming Australia’s industry base. The forum highlighted opportunities to build Australia’s sovereign capability through an emphasis on technology transfer, local participation and exporting innovation.

“The identification of the defence industry in the 2016 Defence White Paper as a Fundamental Input to Capability, coupled with the release of the National Innovation and Science Agenda, were strong, welcome signals to industry,” Lockheed Martin Australia and New Zealand chief executive Raydon Gates said.

“But they also require a concerted focus on our capability challenges and the role of the industry sector to confront them. The defence industry is centre-stage as a driver of innovation-led industry employment and economic growth.

“As a defence industry leader we felt it was important to kick-start that conversation by bringing together industry and academia to collaborate on the significant potential for defence to transform the Australian economy,” Mr Gates said.

Ai Group Victoria president Ross Pilling said the forum was timely in addressing critical questions for industry “that have far reaching consequences for the health and future well-being of our nation”.

“Our economy is in transition from the mining investment phase to the new economy – which will have a high reliance on advanced technology capabilities,” Mr Pilling said. “Defence, as an outlier of cutting edge innovation and technology, has a critical role to play in that new economy, so it is imperative industry works together to address any challenges and unlock its full potential.”

The Securing Australia’s Defence Industry leaders forum featured keynotes from: Leonie Walsh, Victoria’s inaugural Lead Scientist; Tony Peacock, the chief executive of the Cooperative Research Centres Association; and Jens Goennemann, the managing director of the Advanced Manufacturing Growth Centre.

www.lockheedmartin.com.au

www.aigroup.com.au

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AUSTAL Ships Pty Ltd has won the Australian Defence contract to build and sustain up to 21 steel-hulled vessels, replacing the existing fleet of Pacific Patrol Boats as part of Australia’s new Pacific Maritime Security Program.

Within the $280 million contract, Austal will design and construct the first 19 vessels in Henderson, securing more than 120 jobs for Western Australia. The deep maintenance portion of the contact will be staged in Cairns, Queensland. 

“Two vessels have also been offered to a new member of the program, Timor-Leste, with an option for these additional vessels to be constructed by Austal at an agreed fixed price should Timor-Leste accept the offer,” Defence Minister Marise Payne said.

Austal has also been awarded a $24 million contract to provide support services to the replacement vessels for an initial seven-year period. The total investment in support and sustainment of the vessels, including the conduct of deep maintenance in Cairns, is estimated at more than $400 million across the life of the vessels.

Construction of the new vessels will start in mid-2017, with the first vessel to be delivered in late 2018.

“The gifting of these larger and more capable replacement vessels will build on the success of the current Pacific Patrol Boat Program to assist our Pacific Island partners to protect their maritime resources and security interests,” Ms Payne said.

“The existing fleet is approaching its end of service life, and will be replaced with a fleet of new Australian-built vessels to assist our Pacific Island partners to continue to take an active role in securing their extensive exclusive economic zones.

“After years of Labor inaction in which they failed to order a single naval vessel from an Australian shipyard during their six years in office, the Turnbull Government is getting on with the job of providing long-term security for the Australian shipbuilding industry.”

www.defence.gov.au

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PHOENIX Fabrication and Welding will receive a $159,091 grant to expand its manufacturing facilities and create seven new jobs in fabrication, sheet metal work and hydraulic fitting.

The grant is part of the Geelong Region Innovation and Investment Fund (GRIIF) that is helping local manufacturing transition out of the automotive sector, following both factory closures by Ford set for October this year. Phoenix has engineered and supplied equipment to regional trucking companies for more than 20 years. 

The GRIIF is a $29.5 million package developed by the Australian and Victorian Governments and Ford Australia in response to Ford’s announcement that it will cease local production in 2016. The fund was expanded in 2014 by a $5 million contribution from Alcoa of Australia to support Geelong workers, businesses and communities affected by its decision to close the Point Henry aluminium smelter.

Industry, Innovation and Science Minister, Christopher Pyne and Victorian Industry Minister, Lily D'Ambrosio announced the grant to support regional investment and new manufacturing jobs in Geelong.

“Ford Australia is proud to be a GRIIF contributor and to see the fund support new business investment and innovation that will create new, sustainable jobs,” Ford Australia CEO Graeme Whickman said. “GRIIF is an important element of Ford Australia’s commitment to support local communities that may be affected by our business changes and it compliments Ford Australia’s leading local investment in automotive R&D.”

Alcoa Australia chairman and managing director Michael Parker said, “Alcoa is pleased that the Fund continues to enable businesses to grow, innovate and capture new markets, helping to create employment for the region.”

Mr Pyne said, “This grant will support Phoenix, a business that has supplied equipment to Geelong’s local trucking companies for over 20 years, to invest, grow and create sustainable jobs for the future.”

“This is a great example of customers and government working with local manufacturers to expand and grow, with economic benefits flowing to the entire region,” Ms D’Ambrosio said.

“With GRIIF grants currently totalling more than $26 million to support $140 million in project investment, the fund has already enabled the Geelong region to create over 830 jobs.”

www.business.gov.au/GRIIF Projects Supported

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RESEARCH Construction Skills Queensland (CSQ) and Australia’s scientific agency, the CSIRO, sees the construction industry being transformed by prefabrication and modular housing over the next two decades.

The combined report, named The Farsight Project, reveals that new technologies will cause a major shift in the way houses and buildings are constructed. 

According to the Manufacturing Excellence Taskforce of Australia, modular buildings today make up $4.6 billion (or 3 percent) of Australia’s annual $150 billion construction industry. 

CSQ director for evidence and data, Robert Sobyra, said this figure would increase significantly as building companies embrace the cost and time-saving benefits of operating in a controlled building environment.

“Working in a factory takes a lot of the risk out of building,” Mr Sobyra said. “There are no delays due to bad weather, more efficient processes can be used, and construction can occur at any time of day.

“Automated construction technology is well suited to modular building styles and may bring costs down further. Modular buildings are constructed in a very structured, pre-defined way. This sort of predictable and repeatable process is well-suited to being performed by robots.

“Modules and materials can also be sourced from anywhere in the world allowing construction companies to access the best performing and most cost effective options,” he said.

The research highlighted several trends in the housing market which are facilitating the growth of prefabricated technology.

Advances in manufacturing technologies such as three-dimension (3D) printing could create a new playing field for personalised building design and mass production. Increasingly designs are entered into the computer aided drafting (CAD) system then the ‘print’ button rapidly creates the object to specification.

Constantly improving virtual reality software and headsets are allowing new home buyers to personalise and visualise their house at no extra cost.

Mr Sobyra said those working in this new construction environment would require a mix of old and new skills.

“The transition to prefabricated construction will not eliminate the need for human labour and traditional tradespeople,” Mr Sobyra said. “Those building modular structures will still need to know the fundamentals of building and construction.

“In many instances, workers will be required to perform the same tasks that have generally been completed on-site, they will just be operating in a factory.”

However, Mr Sobyra said modular building would take some time to be fully adopted by the industry and property buyers.

“A large number of customers will have to be won over to the modular marketplace. It will take some time for perceptions about the quality of modular housing to be erased,” he said.

“In addition, improved tools, information systems and training will help to reduce on-site costs and prolong the commercial viability of conventional construction methods.”

www.csq.org.au

www.csiro.au

*ABS, Building Activity, Australia. Catalogue Number 8752.02015, Canberra: Australian Bureau of Statistics.

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