defence & security exporting: support for small businesses arfan chaudhry head, support to...
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Defence & Security Exporting:Support for Small BusinessesArfan ChaudhryHead, Support to Business
Origin/Background
• DSO established 1966
• Led on all defence export-related activities
• Changed to DESO in mid 80s
• Around 450 civilian/military staff
• Most DESO staff & services transferred to UKTI on 1 April 2008 to form the Defence & Security Organisation
Government Support For Defence & Security Exports – Why?
• Support/underpin Defence/Security relations
• Enhance interoperability
• Defence/Security procurement benefits
– Maintain Defence/Security industrial base
• Wider economic benefits
But Why Help Small Companies?
• Around 95% of defence exports (by value) achieved by the 20 largest companies (source: DSO industry review)
• HOWEVER
• An estimated 99% of UK businesses classified as SMEs (source: BIS)
• Less than 25% of SMEs actively export goods and services (source: BIS)
• Prime contract sales in UK and overseas underpinned by UK SMEs and their wide range of capabilities
What Is An SME?
• Fewer than 250 employees
• Turnover not exceeding €50M (c. £42M)
– or
• Balance sheet not exceeding €43M (c.£36M)
• Less than 25% owned by a non-SME
• DSO flexible
Principal DSO Services
• Regional Directorates
• Military Support
– Export Support Team
• Events – home and abroad
• Prime Contractor (Key Account) Management
• Exportability Policy Advice
• Market Analysis
• Security
DSO Regional Directorates
• Provide market focus to UKTI DSO activity
• Know the customer
• Deliver ‘Whitehall’
• Customer’s friend
• In-country support
Military Support
• All three services
• Mainstream & niche marketing
• Senior Military Adviser
• Embedded specialist Military staff
– Above Water Weapons Systems, Electronic Warfare, Air Defence Radar, Comms/Info Systems, Armour, Naval Air, Naval Surface/Underwater, Air Logistics/Eng, Naval Air, Homeland & Maritime Security
• Export Support Team
Product Promotion: The Export Support Team
• Demos/displays at UK & overseas exhibitions and for Inward Visits
• Training in support of sales
• Sales promotion/marketing support
• Product evaluations
• Small business focus
DSO Events
• UK – incl. Farnborough (FIAS), DSEi, Security & Policing
• Overseas exhibitions
• Multi-Nation Inward Missions
• Symposium
• SME regional seminars
• Defence/Security Industry Days (DSIDs)
• Briefings
Key Account Management
• Closer working relationship with selected companies at senior level
• Aim is for a strategic performance review between the two organisations
• Key Account Managers, supported by the KAM secretariat
Exportability
Exportability Policy Adviser responsible for:
• Optimising export potential at an early stage in MoD’s CADMID acquisition cycle
• Setting up and managing the provision of advice on exportability to MoD’s acquisition process
• Providing an analysis of export opportunities to the MoD procurement teams
Market Analysis:Equipment, Global Issues & Defence Economics/Horizon Scanning
ROLE
Analysing and forecasting the Global Defence Market and Defence Sectors
OUTPUTS
Market Intelligence
– Annual Global Market overview
– Country market reports
– Competitor reports
– Regional briefs
– Defence Economic Analyses
– Global statistics
MoD Industrial Engagement Policy
Policy encourages foreign participating companies to:
• See the UK as a prime location to engage in R&D, inward investment and technology transfer
• Extend supply chain opportunities
for UK companies
• Report their activities in the
UK annually
Export Licensing – Controlled Activities
Export Control Organisation - the UK’s Licensing Authority for Strategic Export Controls.
Controlled Activities - Exports/transfers of listed items from UK or EU; End Use Controls (military and WMD); Trade
Controls; and Sanctions/ Embargoes
Controlled listed items - identified on Strategic Export Control Lists – Military List and/or Dual Use List
www.businesslink.gov.uk/exportcontrol
• Provides introductory and background advice and key guidance on export licence process and application
• Do I need a licence? What types are there, etc??
• Links to all key resources eg. Control Lists, SPIRE etc
www.bis.gov.uk/exportcontrol
• Provides more specific policy-related information, etc
• Announcements/News – Notices to Exporters & Awareness Bulletins
• Training/Awareness events – UK Export Control Training Academy
Export Licensing Applications
If your goods appear on a Control List or are subject to end use controls apply for an Export Licence using
SPIRESPIRE - Online application for export of ‘strategic goods’ – military/dual use www.spire.bis.gov.uk
Resources on SPIRE• Application Form• Control List Classification Service (Ratings)• MoD Form 680 – release of classified information for use in export promotion
Other resources for rating your goodswww.ecochecker.co.uk – on-line tool to check classification
For sanctions, embargoes and other restrictions www.fco.gov.uk
UKTI DSO Security Directorate
• Over 18,000 companies (9,000 core)
• Some 336,000 employees (135,000 core)
• Global security market worth $180Bn
• Forecast to grow to $295Bn by 2018
• Responsible for security in broadest sense – from homeland, counter terror, fire, police & safety to commercial, covering both man-made and natural threats
• Facilitates cross-Government support for security exports
• Supplies a number of UK and overseas security trade events
• Mixed civilian and military team
• Advised by a multi-disciplined Security Sector Advisory Group
MOIParamilitary Coastguard
Border AgenciesPolice, FireTransport Agencies(aviation, rail, ports) Olympics/sporting & other events
PUBLIC SECURITY
DEFENCE
COMMERCIAL SAFETY & SECURITY
UKTI DSO Defence & Security Boundaries
The UK’s Strengths
• UK recognised internationally as a world leader
• Overarching national security strategy and a new revised counter-terrorism strategy (CONTEST)
• Cutting edge technologies across the sector covering the protection of people, assets and critical national infrastructure
• A research base and experience that enables us to respond quickly to new and emerging threats
• UK services including respected training, mentoring programmes and advice
UKTI DSO Priority Markets 2012 - 13
Middle East – UAE, Oman, Kuwait, Saudi Arabia, Qatar, Libya
Far East – India, Malaysia, Japan, South Korea, Indonesia, Thailand
Europe – NATO/EU (as a collective market), Turkey
North America – USA, Canada
South/Central America – Brazil
Australasia - Australia
The Small Business Unit
• Small Business Charter
• Personal Support
• Introduction to wider UKTI & DSO services
• Events/activities
• Prime contractor network
• 650 members
• £750M sales
www.ukti.gov.uk/defencesecurity/supportforsmes.html
Self-Help Web Based Business Model
• Interactive/dynamic 3 stage web process
• Set up business alerts
• Register at www.ukti.gov.uk
• Links to MoD sites for UK sales
www.ukti.gov.uk/defencesecurity/supportforsmes.html
Stage 1 – New To Exporting
• Why export?
• Getting off on the right foot
• Business ‘health check’
• UKTI regional support
• Training/Education
• Links to UK trade groups
www.ukti.gov.uk/defencesecurity/supportforsmes.html
Stage 2 – Preparing For Market
• Regional marketing guides & briefings
• OMIS/TAP
• Market Analysis
• Licensing & Legal
• Trade sanctions
• Advisory links:
– Business ethics
– IPR protection
– UK Export Finance (ECGD)
– The ‘White Book’
– BDEC
Stage 3 – Access New Markets
• Defence/Security business opportunities
• UK/Overseas events & exhibitions
• ‘Meet the Buyer’
• Licensing & Legal
• Overseas Government/Agency websites
www.ukti.gov.uk/defencesecurity/supportforsmes.html
The 5%
• Access to UKTI DSO services/support, based on specific issues, projects, etc
• 1 – 2 – 1 support
• Relationship Management’
• Personal advice from DSO civilian/military experts
• UKTI DSO contact directory
Contacts
UKTI DSO Support to Business
Arfan Chaudhry
020 7215 8337
UKTI Small Business Unit
Howard Gibbs
020 7215 8204
Welsh Government
Ian Jenkins
Business, Enterprise, Technology & Science (BETS)
03000 615887
MoD Defence Suppliers Service
Phil Margerison
030 679 32832
MoD Centre for Defence Enterprise
Jonathan Byrne
01235 438445