Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

SMEs could face further ‘erosion’

smes could face further  lsquo erosion rsquo

Although there are many supporters of building up and developing Australia’s small to medium-sized enterprises (SMEs) in the defence industry, it is still an uphill battle – and one that some fear the SMEs will not win without proper governance.

Former Australian Army officer and director of Anywise Consulting Adam Evans spoke with Defence Connect about the Victoria-based company's work with defence primes and SMEs, with Evans revealing the major primes are not as supportive of SMEs in Australia as they should be.

Advertisement
Advertisement

"Certainly during the win and delivery phase of business they [primes] are naturally quite excited to find out what capabilities are resident in Australia," Evans said.

"During the deliverance phase though, I have to say the jury's out where there is technology that they have in their inventory off-shore that is similar to the SME delivery in Australia. There's not a lot of compulsion for the primes, or the tier-ones, to support Australian industry."

While Evans said there has been some change over the last few years in the industry and government's approach to large contracts, he believes SMEs are still at risk of missing out on defence work.

"I think the balance is still very well in the primes' favour. Certainly not in the SMEs," Evans said.

SPONSORED CONTENT

 

"Unless there is some very tight governance around performance expectations amongst the main service providers, we may see even further erosion of the SME community here."

Although Evans is confident that the government and key players like Defence Industry Minister Christopher Pyne are genuinely trying to enforce maximisation of Australian industry in defence contracts, he noted there is only so much government can do in the current industry landscape.

"I think there is a lot of space between Christopher Pyne and them sort of delivering the programs. There's an old saying, 'you don't get sacked for buying an IBM', right? But I think, time will tell I guess," he said.

However, one of the biggest hurdles facing SMEs in the Australian market, according to Evans, is describing capabilities – but he is confident this is something that can be addressed and, once completed, is the first step towards success.

"I think one of the things that’s lacking is [the ability to] accurately describe [what the] capability is in the Australian market in terms of supply chain. Which is the first step I guess. And then once you've accurately described that capability, having a real and informed discussion around the capacity," Evans said.

 

SMEs could face further ‘erosion’
SME-erosion.jpg
lawyersweekly logo

more from defence connect

Nov 19 2019
Debate rages about royal commission into veteran suicide as Victoria Cross recipient slams ADF
Australia’s most decorated former soldier, Ben Roberts-Smith, has gone on record saying that he wo...
Nov 19 2019
Nova Systems Australia general manager named to DTC board
Lee Kormany, Nova Systems’ general manager of maritime, land and future systems, has been elected ...
Nov 19 2019
International submarine search and rescue exercise concludes off WA coast
A major international submarine search and rescue exercise, featuring assets from Australia, Japan,...
FROM THE WEB
Recommended by Spike Native Network