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NSW Defence Sector Capability Report

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NSW Defence Sector Capability Report The Future of Defence Made in NSW About Australia The Australian economy has outperformed the country's peers for more than two decades. Now in its 27th year of consecutive growth, Australia's economic resilience and strength are unsurpassed among major advanced economies. The nation offers a smart, multicultural workforce with an enterprising mindset and the skills to drive innovation and grow international business. Australia prides itself on stable institutions and good governance, making it one of the safest places in the world to do business. It boasts a globally integrated economy that plays a key role in shaping Asia's dynamic economic future. There is no better business partner than Australia. Australia New South Wales (NSW) Sydney 27 years of 2.9% economic growth, 4th largest economy uninterrupted one of the highest in the Asia–Pacific region economic growth industrial economic growth rates for developed countries globally 13th largest economy Ranked No. 1 smartest AAA credit rating in the world country in the Asia Higher in credit quality Pacific and 4th smartest than the US, UK, France, country in the world Japan, Hong Kong, Republic of Korea and New Zealand Front cover image courtesy of Department of Defence image library. 2 2 2 About Sydney and New South Wales Lismore New South Wales (NSW), with New England and North Coast its iconic capital city of Sydney, North West is Australia’s most populous Armidale state and largest economy. Far West Tamworth A cosmopolitan and regional Central West Port Macquarie and Orana powerhouse, the state seamlessly Broken Hill Dubbo Hunter blends business strength, access Newcastle to Asia, and one of the world’s Central Coast Gosford most enviable lifestyles. Boasting Sydney a AAA credit rating, NSW is Greater Sydney Wollongong experiencing Australia’s largest Riverina Murray Illawarra-Shoalhaven Wagga Wagga Canberra infrastructure boom and is home (ACT) to a highly skilled, innovative and South East and Tablelands creative workforce. Eden ABOUT NSW: NSW is Australia’s leading source of highly skilled and diverse talent Sydney is No. 1 in the NSW is home to three Asia Pacific and No. 3 of Australia’s top Capital city: Sydney globally for top 100 five highest ranked ranked universities research universities NSW 7.9 million population: Sydney NSW is Australia’s most innovative state with a strong culture of 5.1 million population entrepreneurship nd NSW time Sydney is the 2 NSW is the startup GMT +10:00 zone: highest ranked city capital of Australia, in the Asia–Pacific home to more than Sub-tropical and region for innovation 40% of all startups Climate: Mediterranean Sydney summer temperature 18–27 °C NSW is Australia’s most secure and liveable place to do business average: Sydney is the NSW is set to deliver on Sydney winter highest-ranked the biggest infrastructure temperature 7–18 °C capital city in program in Australian average: Australia for quality history, with a A$87.2 billion of life pipeline of infrastructure Coastline: 2,007 kms Official NSW is Australia’s largest market English language: Home to 7.9 million The state is Australia’s Australian dollars people, more than largest economy: Currency: (AUD) Singapore and A$500 billion, larger Hong Kong than Malaysia, Singapore and Hong Kong International Sydney Airport airport: 3 Introduction New South Wales (NSW) has the strongest defence1 presence and the most sophisticated defence- related industrial base and research institutions of any state in Australia. NSW has been the leading As a result, all the major enabler of national defence since defence primes either have their before federation in 1901, and headquarters in NSW or have a has the greatest concentration substantial presence in the state. of defence assets in the country. Today, NSW is also home to NSW’s position is enhanced the majority of Australia’s by being Australia’s economic, leading tertiary research and financial and educational development institutions powerhouse, contributing one- with significant experience in third of the country’s gross delivering on defence capability domestic product and enjoying priorities and attracting an AAA credit rating and record international investment. business investment. The defence industry in NSW has core strengths and expertise in the most critical capabilities. These include advanced and subsystem manufacturing, sustainment of major systems, complex project management, complex systems integration, cyber security, and composite materials research, design and production. 1 Department of Defence, the Australian Defence Force and related entities. 4 4 4 5 5 Defence sector overview NSW attracts NSW is home to more than one-quarter of Australia’s military and defence civilian personnel, the highest with 25,000 people including permanent annual defence members, reservists and civilians. investment The state hosts more than 80 Supporting the greatest across facilities, including 21 major concentration of defence assets, acquisition, defence bases and training NSW is home to the largest sites—more than any other defence industrial workforce sustainment and Australian state or territory. (6,500 direct and more than operations The operational headquarters for 29,000 indirect workers). the Royal Australian Navy, the NSW also attracts the highest Australian Army and the Royal annual defence investment Australian Air Force, as well as across Australia in acquisition, the Joint Operations Command, sustainment and operations are located in NSW. All three (valued at approximately services have their strategic A$9 billion per annum). headquarters in the Australian Capital Territory—the ACT. Additionally, NSW hosts major sustainment hubs for the Royal Australian Navy at Garden Island Defence Precinct, the Australian Army at Holsworthy Barracks, and the Royal Australian Air Force at RAAF Base Williamtown. 6 6 6 Major defence bases in NSW RAAF Base Glenbrook RAAF Base Richmond Lone Pine Barracks (Hunter) RAAF Base Williamtown (Hunter) Sydney Harbour - HMAS Kuttabul - HMAS Penguin - HMAS Waterhen - HMAS Watson Victoria Barracks Randwick Barracks Liverpool Military Area HMAS Albatross (Illawarra-Shoalhaven) HMAS Creswell (Illawarra-Shoalhaven) RAAF Base Wagga (Riverina-Murray) Blamey Barracks (Riverina-Murray) Navy Army Air Force 7 Sector capabilities and enablers NSW’s strong industrial base NSW offers these capabilities, These manufacturers are vital underpins our defence capability positioning it well to meet current to the diversity and strength of and future workforce skills needs.2 the Australian economy. Overall, The defence sector is For example, the industrial manufacturers in NSW produce underpinned by a deep and base for the defence sector in almost 30% of the country’s total complex industrial base with NSW includes highly innovative, output in the sector, generating capabilities in materials research, competitive and world-leading around A$30.18 billion annually industrial design, information and manufacturers that are using and accounting for one-third of communication technology, and state-of-the-art technology and manufacturing jobs.3 4 complex systems integration. highly skilled staff. Sector supply chain NSW has strong capability across the defence sector value chain. The state's largest capacity is in support services including ground operations; training; emergency response; maintenance, repair and operations (MRO); project and data management; and engineering (including test and calibration). Relative strengths of industry capability Research & Product development, Sales, services/maintenance, development, production/manufacturing logistics commercialisation, design Engineering & research Munitions, ordnance, explosives Sales and service Materials, composites, alloys Electronic systems, sensors, hardware Training and safety Construction & manufacturing Propulsion systems Transport and logistics Vehicles, hardware equipment Command, control and communications Support services Unmanned systems IT, cyber security 2 Department of Industry NSW, 2017, New South Wales: Strong, smart and connected – The NSW Government Defence and Industry Strategy 2017, industry.nsw.gov.au/__data/assets/pdf_file/0011/98624/NSW-Strong-smart-and-connected-defence-strategy.pdf, accessed 8 June 2018. 3 Australian Bureau of Statistics, 2017, Australian National Accounts: State Accounts, 2016–17, cat no. 5220.0. 4 Australian Bureau of Statistics, 2018, Australian Industry 2015–16, cat no. 8155.0. 8 8 8 Image courtesy of Department of Defence image library. 9999 Critical industry capabilities Industry capability is spread throughout NSW but is generally close to defence presence and infrastructure in Sydney, including Western Sydney, and several specific regions. Areas of Industry Capability in NSW Hunter- Western Rest Capability Sydney Newcastle Illawarra Sydney of NSW Support services ••• •• • • • Engineering & research ••• •• •• • • Construction & manufacturing ••• • • •• • Training & safety •• • •• • Transport & logistics •• •• • • • Sales & service •• • • • • Electronic systems, •• •• • • • sensors, hardware Command, control & •• • • • • communications IT, cyber security •• • • Materials, composites, alloys • • • • • Unmanned systems • • • • Vehicles, hardware • • • • • equipment/platforms Munitions, ordnance, explosives • • Propulsion • • • Security, access control • • Key: ••• Significant capability •• Developed capability • Some capability 10 10 10 Greater Sydney region One vital industry is the sustainment of naval vessels. The Greater
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