Aerospace Industry News

Expanding Scope of the Industry

The industry base has been expanded to include companies involved in systems engineering and project management. Typical are companies who provide computer based logistics management programmes for records certifications in relation to servicing and modifications for aircraft. A growing ultralight manufacturing capability is evolving and significant involvement in the space industry is developing. While the value of these new activities is still small, their emergence over the past four years is indicative of the changes taking place within the industry.

An examination of the Australian industry demonstrates that, where aerospace quality standards apply, 15-40% of indigenous programmes involve sub-contractor networks which are being developed with the assistance of the major Australian prime contractors. This sub-contractor and supplier base is extremely important to the development of the industry and is characteristic of the aerospace industry internationally.

Ongoing support of aircraft and engines, facilities for which have been developed in Australia for our own military and civil aircraft fleets, is a substantial export market business area. The recently won contract by ASTA for maintenance of Continental’s 747 aircraft is encouraging.

The technology involved in repair and overhaul work is of a high level and includes R&D type activities involving components improvements programmes. The reclamation of turbine engine parts (aside from actual engine overhauls) is also a growth area. Reclamation of parts uses highly advanced processes and procedures. The . · replacement cost of turbine engine parts represents two thirds or more of the total cost of an engine overhaul and it is usual to achieve engine overhaul cost reductions of between 25% and 30%. Australia is as a result competitive with international engine overhaulers.

Investment

Whilst the level of investment varies case by case, it is clear that companies recognise the need to continue investment in advanced technologies and management techniques. Actual investment levels are increasing and are substantial in a number of cases.

Productivity

The value of the Australian dollar relates to the success of aerospace exports, however, this is not the only factor; indeed successful international contracts were achieved when the Australian/US exchange rate was the reverse of its current bias.

Productivity is a key factor. Productivity in Australian aerospace companies has improved as the industry has developed substantially innovative production methods.

A typical case is the machining of wing ribs, whereby Australian innovative tooling designs and machining techniques are removing surplus metal faster and giving the customer a lighter weight at lower unit costs.

The basis for such initiatives by the Australian industry is an in depth engineering capability, in both design and manufacturing. It is the practice of the industry to second engineers to international companies, particularly in development programme areas. The quality of Australian engineers is such, with their broadly based capabilities, that in many cases they have been appointed the project team leaders, whilst on overseas secondment. The experiences gained enables them to make improvements in design and production methods on their return to Australia. This i5 a spin-off of the offsets programme which is often overlooked.

The Future

It is four years since the Bureau of Industry Economics conducted its survey of the Australian aerospace industry. About a year and a half ago the industry set itself export targets whose achievement depended upon initiatives being undertaken within the industry and the Government.

While these targets were based on the premise that the Government would adopt certain strategies to assist the industry achieve and maintain an internationally competitive posture which did not eventuate in their totality, there are still grounds for considerable optimism. To the extent that Senator Button, in his speech to the Australian Aviation Symposium on 18 November 1987, specifically ruled out the Government’s participation in a number of significant supportive measures, the achievability of the longer term targets for exports setat that time are at risk. Nevertheless, much progress has been made by the industry and the future should see further expansion.