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Publication date: May 2013

2 AEROSPACE MANUFACTURING AND SERVICES Innovative, competitive and technically sophisticated

AEROSPACE MANUFACTURING AND SERVICES 3 Introduction With its large internal land mass and geographic OVERVIEW distance from its trade partners, Australia has been actively involved in aviation since the early days of INDUSTRY STRENGTHS the industry. FURTHER INFORMATION The black box flight recorder is just one of This industry capability statement the Australia has contributed provides an overview of Australian along the way. capability in the aerospace industry, including examples of some of the Today, the Australian aerospace industry many Australian companies with is a respected global supplier, offering a specialist expertise. diverse range of expertise in manufacturing, , , Talk to your local Austrade representative training and business services. This is for tailored advice and information on underpinned by a strong domestic , connecting and partnering with the innovative research and development, and Australian aerospace industry. government support.

4 AEROSPACE MANUFACTURING AND SERVICES AEROSPACE MANUFACTURING AND SERVICES 5 Introduction The Australian aerospace industry The active domestic market, The aerospace industry has become is a competitive and technically advanced research and development increasingly globalised over recent sophisticated global supplier, capability and strong government years. The current wave of globalisation INDUSTRY OVERVIEW support have helped drive , will see greater collaboration between with representing more enabling companies to provide nations, such as the Australian INDUSTRY STRENGTHS than 20 per cent of total , best-value solutions to aerospace Government’s with the and a growing role in global supply markets worldwide. US on the Joint Strike Fighter chains in Europe, US, , aircraft program. FURTHER Some of the advantages Australia and ASEAN. offers are: Globalisation will also have an impact INFORMATION on the commercial sector. For example, Australian capability is broad, with • the highest levels major are using private expertise ranging from civil and within the Asia-Pacific region at contractors to provide maintenance defence applications including: competitive prices services, rather than in-house • systems and software • an mechanics. environment with an excellent skills • Continued demand for more and base • metallic and composite component fuel-efficient aircraft is expected • high quality, effective and sub-assembly design and to drive product innovation in aerospace design with excellent manufacturing aircraft manufacturing. and IT infrastructure • tooling and assembly With proven capabilities, experience • exceptional R&D resources, and expertise, Australia is an ideal • air systems integration and training facilities. partner to help international companies • air traffic meet these challenges and more. • industry services including: - aircraft maintenance, repair and overhaul - ground support equipment design and manufacture - charter services - pilot and engineering training.

6 AEROSPACE MANUFACTURING AND SERVICES AEROSPACE MANUFACTURING AND SERVICES 7 Introduction Australia’s aviation and aerospace Australia’s innovative advanced • integrated support solutions, industry has a proven manufacturing capability is in strong and usage monitoring systems, record delivering manufacturing, demand in global supply chains. information and training systems Australia’s capabilities are focused INDUSTRY OVERVIEW • capability to deliver projects within maintenance, research and on high , high value-add, short lead times INDUSTRY STRENGTHS development, and training and and high-skill manufacturing that uses education services globally. advanced design, processes, materials • transport infrastructure and delivery and . Expertise in this systems that are highly developed FURTHER The Australian industry is sector is underpinned by a strong and efficient. network of support from the public INFORMATION significant, generating The Australian aerospace capability and private sector and a deep pool of around A$4 billion. The sector comprises four main segments: of technical talent. has approximately 830 firms and • manufacturing, including commercial 1-3 Australia’s aerospace industry around 14,000 employees. and aircraft and parts encompasses aero structure Education, design, safety, component manufacture; development • maintenance, repair and overhaul and supply of systems engineering and and extending aircraft life innovation and research and avionics; manufacture of light aircraft • research and development development are key strengths. for training, agricultural and recreation Most of Australia's major aerospace uses; maintenance, repair and • training and business services. manufacturing companies operate overhaul (MRO) services for domestic globally, with exports in the and overseas airlines; and pilot and industry accounting for more than engineering training. a fifth of total industry revenue.2 Expertise and capability includes: • solid track record in aerospace programs and experience in working on commercial aircraft programs and classified military projects • design, manufacture and software/ systems engineering • flexible innovative technology and volume manufacturing

8 AEROSPACE MANUFACTURING AND SERVICES Manufacturing Australia’s technological manufacturing Australia also has capability in the Introduction skills have led to the design and supply of specialty alloys and materials, Australia’s aerospace manufacturing supply of high value-add manufactured parts, engineering and manufacturing INDUSTRY OVERVIEW industry is dominated by large scale light components for the world’s major aircraft services, certified metals processing and metal (e.g. titanium and ) and companies. , Airbus, Lockheed heat treatment (e.g. IATA and NADCAP INDUSTRY STRENGTHS composite component and sub-assembly Martin, Eurocopter and BAE Systems certification) for manufacture and repair, activities. Component are just some of the international high quality precision tooling and manufacturing expertise covers both companies utilising Australian equipment, unmanned aerial FURTHER commercial and military aircraft, including innovation and expertise. (UAVs), specialised ground support equipment and other niche products. INFORMATION large composite structures. Particular areas of expertise include metal Commercial aircraft parts manufacturing and composite aero structure component accounts for 33 per cent of the market, manufacture and assembly; development with the manufacture of military aircraft, and supply of systems engineering and parts and missiles and maintenance, avionics; and the manufacture of light repair and overall services comprising aircraft for training, agricultural, recreation, the other main sectors.4 surveillance and charter uses.

Australian aerospace sectors by revenue 2012-134

Commercial aircraft and parts 33% Total Military aircraft, parts and guided missiles 30.5% $4.4bn Maintenance, repair and overhaul 29.8% Light aircraft and parts 6.7% Source: ibisworld.com.au

AEROSPACE MANUFACTURING AND SERVICES 9 Maintenance, repair, Research and • Advanced Manufacturing Introduction Research Centre overhaul and development (AMCRC) – based at Swinburne INDUSTRY OVERVIEW extending of Technology, this CRC Australian research and development develops next-generation technology aircraft life (R&D) in aerospace is strong and INDUSTRY STRENGTHS platforms across numerous features many thriving public-private manufacturing sectors. Australian companies offer substantial . Some examples FURTHER expertise in maintenance, repair and of Australia’s R&D strengths and • Platform Sciences Laboratory in the overhaul (MRO) services for both collaborative efforts include: Defence Science and Technology INFORMATION domestic and overseas airlines. Organisation (DSTO) is Australia’s • Australian Advanced Manufacturing leading aeronautical research Australian capability has led to Research Centre (AusAMRC) – institute. international demand and the a new collaboration between of MRO services. The industry delivers Boeing and Swinburne University • Defence Materials Technology innovative technologies and has that will develop technology-driven Centre (DMTC) provides considerable experience in delivering solutions to ensure Australian technological solutions to enable complex aircraft systems and services. suppliers are among the most industry to enhance Australian Specific maintenance and life innovative, competitive and capable defence capability. extension expertise covers a range of in the world. • Sir Lawrence Wackett Aerospace aircraft including C-130, P-3, F/A-18, Centre at RMIT University works on Hawk 127, PC-9, MiG-17, CT-4, CH-47 • Cooperative Research Centre for the development of next-generation Chinook, S-70 (SH-60) Seahawk, and Advanced Composite Structures aerospace technologies. Dash 8, Boeing and Airbus (CRC-ACS) – this CRC, based at commercial aircraft. Monash University, has built a global • Materials Science and reputation for composites research, Australian industry has the ability to Technology division of CSIRO in close collaboration with industry. provide world leading services and (the Commonwealth Scientific and expertise in all aspects of aircraft Industrial Research Organisation). maintenance, repair and overhaul, • Many other researchers at the advanced maintenance, upgrades, of Sydney, New and condition and health monitoring. South Wales, Monash, RMIT and These can be scheduled or unscheduled Queensland. in nature and further described as breakdown, preventative, predictive or proactive activities.

10 AEROSPACE MANUFACTURING AND SERVICES Training and business Particular areas of training expertise Introduction include: services INDUSTRY OVERVIEW • Australian universities and vocational Charter air transportation and air training education and training institutions are the Australian industry’s major offer world-class courses in aerospace INDUSTRY STRENGTHS segments. engineering, attracting international students and fostering collaborations Charter air transportation includes rental with international education bodies. FURTHER or leasing of aircraft with crew, used INFORMATION mainly for passenger transportation • Australian industry providers offer and sightseeing. aeronautical, avionics technical training and other engineering training, in The air training segment has performed addition to cabin crew training and solidly in recent years due to the strong aviation English training. demand for commercial pilots and Australia’s specialist skills in this area. Australian business services expertise Australia’s geography and location are includes: ideal for pilot and air skills training. • fixed-base operator (FBO) services Local firms train an increasing number • services companies providing of overseas students and trainees, and aeronautical services such as fuelling, inward investment in the segment hangaring, tie-down and parking, is strong. aircraft rental, aircraft maintenance and flight instruction • integrated resources management and logistic services – for example, continual tracking of all and engine components and systems.

AEROSPACE MANUFACTURING AND SERVICES 11 Boeing looks to Australia for innovation breakthroughs

Case study: research and In addition, it has delivered a number of Photo courtesy of CSIR O Photo courtesy development technological breakthroughs, including topcoat reactivation technology for Boeing, the world’s leading aerospace recoating Boeing airliners, airspace and company, and the Commonwealth airport congestion simulation and Scientific and Industrial Research sustainable aviation fuels. Organisation (CSIRO), Australia’s leading research and science agency, In May 2012, the two organisations have been in partnership for more than announced a new five-year, 23 years. A$25 million research program to cover innovations in space sciences, With the whole world to choose from, advanced materials, energy and direct the aerospace giant turned to CSIRO manufacturing. for its innovative ideas, skills, and expertise in research. And it is a partnership which is paying dividends: CSIRO was named one of Boeing’s suppliers of the year in 2010 and a joint Boeing-CSIRO project was awarded a CSIRO excellence award in 2011.

12 AEROSPACE MANUFACTURING AND SERVICES Lovitt Technologies partners with high flyers

Case study: manufacturing Lovitt Technologies is also an important Australian supplier for the F-35 Joint Lovitt Technologies Australia, a Strike Fighter, delivering complex -based specialist aerospace machined airframe components to and defence manufacturer, produces Lockheed Martin. A particular milestone

Photo courtesy of L ovitt Technologies Photo courtesy components for some of the world’s was achieved in August 2012, with the most advanced military aircraft. In delivery of the first Australian made February 2013, Lovitt was awarded component for the first F-35 for the contracts with Boeing valued at around Royal Australian Air Force, which is A$4 million for machined parts for the currently in production in the USA. global F/A-18 Super Hornet fleet. Lovitt is one of a number of Australian companies winning international contracts through the Global Supply Chain Program. It has previously been awarded a Super Hornet contract in 2012, along with other contracts to supply machined parts for the V-22 Osprey, CH-47 Chinook and P-8 Poseidon.

AEROSPACE MANUFACTURING AND SERVICES 13 Careers take off at Flight Training

Case study: training It also ensures that its training courses are delivered to the Airlines around the world are looking standards set by different Civil to Australia as an ideal setting for Aviation Regulators and that they pilot training and Flight Training meet the rigorous requirements Adelaide (FTA) is a leader in this field. of the various international It has been training cadets A ustralia of Flight Training Photo courtesy regulatory bodies. since 1982, working with many of the world’s major airlines along the way. By partnering with so many different airlines, FTA has developed a broad As well as serving Australian carriers understanding of the unique training such as Virgin Australia, QantasLink practices and cultural operating and being an approved training environments of each individual provider for Australia’s national carrier airline and continues to deliver Qantas, FTA is currently providing -made training solutions training for Cathay Pacific, Dragonair, for aviation companies around Hong Kong Government Flight the world. Services, the China Rescue and Salvage Service (Helicopters) and the Hong Kong Civil Aviation Department. Different aviation have their own requirements for courses and FTA caters for all of these.

14 AEROSPACE MANUFACTURING AND SERVICES Advanced facilities help Ferra stand out

Case study: manufacturing Ferra has recently signed a number of long-term agreements with Boeing ‘Our initial supplier was close to 18 for supply of P-8, CH-47, F-18, 767 and months behind . Ferra was 747-series components, as well as

Photo courtesy of Ferra E ngineering of Ferra Photo courtesy one of the fastest and most efficient contracts to produce Weapon Pylons supplier transfer programs within and Mission Kits for the MH-60R Romeo helicopter and components for the the group, and brought the schedule F-35 project. It is also involved in back on track in less than 3 months’ research partnerships with Lockheed – Eurocopter Supplier Management and the University of Queensland for advanced titanium and A commitment to advanced facilities manufacturing processes. and R&D has helped -based Ferra Engineering become a leading Industry awards and recognition for partner to aerospace OEMs in the Ferra include Boeing Supplier of Australasian region. the Year for 2011 in the International Category, supplier status Specialising in the design, manufacture, award from Northrop Grumman and a assembly and testing of aerospace Boeing award for outstanding supplier structures and sub-systems, Ferra’s achievement for its bulk customers include Airbus, Boeing, machining project. BAE Systems, GE Aviation, Goodrich, Lockheed Martin, Thales, Marvin Engineering, Northrop Grumman, Parker and Rolls Royce.

AEROSPACE MANUFACTURING AND SERVICES 15 Ryan Aerospace takes helicopter training in a erospace new direction

Case study: training ‘While demonstrating the Helimod for the US Navy, one official commented that it When pilot Chris Ryan started helicopter was 80 per cent of the solution at about training over ten years ago, he spotted a two per cent of the cost,’ Mr Ryan said. of R yan A Photo courtesy gap in the market – and decided to do something about it. Ten years on, ‘The Helimod can teach basic flying and his company Ryan Aerospace produces airmanship skills, emergency procedures, COTS (commercial off-the-shelf) helicopter navigation and weather avoidance and and fast jet simulators and synthetic interaction. It has also found a place in training devices for international clients aeronautical testing laboratories around including Boeing, the Royal Air Force the world, being used for human factors (), the Australian Navy, analysis and lab software testing. The the Indonesian Navy, the Saudi Arabian is also being used by military Military, commercial training schools and organisations for combined arms training,’ human factors analysis labs. Mr Ryan said. The company’s flagship product, the A dual-control version, the Helicrew, Helimod, is a unique design that allows is now also in production. users to ‘bolt on’ aircraft-specific modules In addition to winning numerous Australian to a main platform which replicates industry awards, Ryan Aerospace was a generic helicopter configuration. chosen as one of four finalists in the Combined with display systems that US-based Aviation Week Aerospace replicate the pilot’s view outside the and Defence Supplier Innovation cockpit, the system can deliver highly Challenge 2011. realistic training at a fraction of the cost of flying time in a real helicopter.

16 AEROSPACE MANUFACTURING AND SERVICES Airbiz – in demand from Brussels to Botswana

Case study: business services Airbiz played a key role in the new C$3 billion Calgary International Airport Airbiz Aviation Strategies, an Australian (YYC), ’s third busiest. The aviation and airports consultancy, is company was selected as the specialist providing expertise for major airport aviation planning and simulation and aviation developments around the consultant for the runway modelling and world. The Melbourne-based company environmental assessment for Calgary’s has completed consultancy projects in C$500 million new parallel runway. over forty countries on five continents, It also provides planning and project and now earns more than half its management services for the upgrade income from international work. of passenger concourses. Airbiz’s expertise and services cover Other recent overseas projects have the gamut from strategic planning included work with Queenstown in airport master plans to feasibility Airport Corporation in New Zealand studies and terminal and airfield on a Common Departure Terminal simulations. Its airport management development to allow the airport to work includes testing for operational respond to rapid growth in tourist readiness and terminal design, including numbers, and terminal planning projects spatial analysis and airport in Brussels and Botswana. analysis and planning. It also advises on aircraft noise, traffic forecasting, aviation policy, airport systems, financial modelling, expert evidence and due diligence.

AEROSPACE MANUFACTURING AND SERVICES 17 Quickstep spreads its wings

Case study: manufacturing The C-130 Hercules airlifter is one of the best-known and longest-serving military aircraft in the world. Its latest version, the C-130J Super Hercules, is set to take off of Quickstep Photo courtesy with parts manufactured by the Australian firm Quickstep. An advanced carbon composites manufacturer, Quickstep has recently received its first purchase order as part of a contract with Lockheed Martin to supply composite wing flaps for the Super Hercules. The first step of the agreement involves preliminary work such as planning, process qualification, tooling and training activities. Together with the recent grant of a Manufacturing Licence Agreement, these activities pave the way to starting deliveries following the receipt of a $A12 million order in September 2012 covering one year of supply. The program is expected to generate revenues of A$75 million to A$100 million over five years. The first delivery of parts is expected in the middle of financial year 2013-14 and will feed the Lockheed Martin C130J in Marietta, , in line with global supply chain delivery arrangements.

18 AEROSPACE MANUFACTURING AND SERVICES AEROSPACE MANUFACTURING AND SERVICES 19 The following are some of Australian Business Defence Airframe and Engine MRO in Introduction the government and industry Industry Unit (ABDIU) is a nationally- Australia provides a list of links to focused organisation based in a number of third-party or contract bodies involved in the Australian INDUSTRY OVERVIEW Canberra that assists companies in aerospace Maintenance, Repair aerospace industry. defence-related activities to maximise & Overhaul (MRO) companies Contact your local Australian Trade their business potential through and organisations in Australia. INDUSTRY STRENGTHS advocacy, market information and airlineupdate.com/content_ Commission representative about assistance in providing relevant subscription/mro/oceania/ FURTHER connecting and partnering with products and services for the australia.htm the Australian aerospace industry. defence and broader national INFORMATION Airservices Australia is a government- markets in Australia and overseas. owned corporation responsible for austrade.gov.au nswbusinesschamber.com.au/ providing airspace management, abdefence aeronautical information, aviation Government and Aviation/Aerospace Australia is the communications, radio navigation aids national association representing the and aviation rescue and firefighting industry associations aviation and aerospace industries. services to the aviation industry in aviationaerospace.org.au Australia. airservicesaustralia.com Australian Industry and Defence Network (AIDN) is the industry Australian Helicopter Industry Civil Aviation Safety Authority association for small-to-medium Association (AHIA) is a new body (CASA) is responsible for regulating enterprises (SMEs) wishing to do formed to represent the Australian the industry and maintaining safety business in the defence and helicopter industry. With more than standards. casa.gov.au 2,000 helicopters on the CASA Aircraft security sectors. aidn.org.au The Department of Industry, Register, Australia has the sixth-largest Innovation, , civil helicopter fleet in the world. Science, Research and Tertiary austhia.com Education helps industry to become Aviation Maintenance Repair more efficient, competitive and Overhaul Business Association innovative. innovation.gov.au/ (AMROBA) is a non-profit organisation Industry/Aerospace/Pages/ dedicated to represent the default.aspx maintenance, repair and overhaul segment of Australia's aviation industry. amroba.org.au

20 AEROSPACE MANUFACTURING AND SERVICES JSF Team Australia – Joint Strike Australian Military Office (AMSO) Simulation Australia is the peak Fighter program. Team Australia is a within the Defence Materiel Organisation association for the simulation industry in partnership of industry and Government works closely with Australia's defence Australasia. Simulation Australia provides to provide the first point of contact for and aerospace companies to help them a forum for discussion and of information about Australian industry and export their products and services. information, and to advance the research, technological capabilities for the JSF Team Defence Australia trade missions development and use of simulation program. innovation.gov.au/Industry/ and Australian pavilions at international technologies and practices in society, Defence/JSF/Pages/default.aspx trade exhibitions are used to showcase industry, academia and government. Australia's capabilities across all domains. simulationaustralia.org.au Extending Aircraft Life program As well as providing advice on Australia's recognises Australian industry's unique Simulation Australia training and simulation defence industry capabilities, AMSO capabilities and ability to provide world industry capability directory can be found facilitates government to government sales leading services and expertise in all here: directory.simulationaustralia.org.au of defence equipment and services. aspects of aircraft maintenance, repair and defence.gov.au/deu overhaul, advanced maintenance, upgrades and condition and health monitoring. Defence Science and Technology innovation.gov.au/Industry/Defence/ Organisation (DSTO) is the Australian Pages/ExtendingAircraftLife.aspx Government’s lead agency charged with applying science and technology to protect Defence Materiel Organisation (DMO) and defend Australia and its national is Australia’s largest project management interests. dsto.defence.gov.au organisation. Its mission is to acquire and sustain equipment for the Australian Industry Capability Network (ICN) is a Defence Force (ADF). defence.gov.au/dmo business network that introduces Australian and New Zealand companies to projects, both large and small, in Australia, New Zealand and other international markets. icn.org.au

AEROSPACE MANUFACTURING AND SERVICES 21 Introduction References

1. Department of Industry, Innovation, INDUSTRY OVERVIEW Climate Change, Science, Research and . INDUSTRY STRENGTHS Aerospace Industry. http://www.innovation.gov.au/ FURTHER Industry/Aerospace/Pages/default. INFORMATION aspx Accessed 11 February 2013. 2. Civil Aviation Safety Authority. Aviation-Aerospace Australia speech. Accessed from http://www.casa.gov.au/scripts/ nc.dl?WCMS:STANDARD:1001: pc=PC_100723 8 April 2013 3. Australian Bureau of Statistics. 8159.0 Experimental Estimates for the Manufacturing Industry Australia 2009-2010. Accessed from www.abs.gov.au 8 April 2013. 4. IBISWorld, C2824 Aircraft Manufacturing in Australia, December 2012.

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