International Opportunities in the Aerospace and Defense Sector
Presented by
Mathew D. WoodleeSenior International Trade SpecialistU.S. Commercial Service – Minnesotawww.export.gov/minnesota
Melissa GrossoSenior International Trade SpecialistGlobal Aerospace & Defense Team LeaderU.S. Commercial Service – Connecticut www.export.gov/connecticut
Why Export?
Increased sales and profits
Overcoming low growth in the domestic marketplace
Minimizing the effect of seasonal sales fluctuations
Exploiting technology and expertise in foreign markets
Achieving economies of scale
Grow your business
Keep up with the competition
• 96% of all customers reside outside the USA
Who’s Exporting…?
Small- and medium-sized enterprises!
• 97% of U.S. exporters are SME’s
• Represents 30% of total export value
• Most export to only 1 foreign market
• Most have fewer than 20 employees
U.S. Free Trade Agreements (FTAs)FTAs reduce barriers to U.S. exports, and create a more stable and transparenttrading and investment environment, making it easier and cheaper for companies toexport their products and services.
U.S. FTA Partner Countries Australia Bahrain Chile CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, & Nicaragua) Colombia Israel Jordan Morocco NAFTA: Canada & Mexico Oman Panama Peru Singapore South Korea
Basic Requirements for Exporting
• An exportable product or service
• A competitive advantage
• The finance to take it to the marketplace
• A commitment in making the export project work
Your International Team Must be:
• Flexible• Committed to travel• Work Independently• Good “Ambassadors”• Technologically Proficient• Culturally Sensitive
National Export Initiative
More exports = more jobs
- Through the National Export Initiative (NEI), President Obama has announced a goal of doubling exports within five years to support two million job in America
Government support
- To help achieve this goal, the Export Initiative will provide more funds, focus, and cabinet-level coordination to grow U.S. exports.
- This is the first time the United States will have a government-wide export-promotion strategy with focused attention from the president and his Cabinet
Federal Agencies and the Trade Promotion Coordinating Committee
Trade Promotion Coordinating Committee is taskforce of 20 agencies focused on coordinating government-wide export promotion through 7 core agencies:
– U.S. Department of Commerce– U.S. Export – Import Bank– Overseas Private Investment Corporation– U.S. Trade & Development Agency– Small Business Administration– Department of State– Department of Agriculture
U.S. Commercial Service
The U.S. Commercial Service provides U.S. companies unparalleled access to business opportunities around the world.
As a U.S. Government agency, we have relationships with foreign government and business leaders in every key global market.
Our trade professionals provide expertise across most major industry sectors, in all major and emerging markets
We offer fee‐based services to U.S. companies to help them expand international sales of U.S. made products and services
U.S. Commercial Service –Located in 120 cities in over 75 countries
AlgeriaAlgiersArgentinaBuenos AiresAustraliaMelbourneSydneyAustriaViennaBelgiumBrusselsBrazil Belo HorizonteBrasiliaRecifeRio de JaneiroSao PauloBulgariaSofiaCanadaCalgaryMontrealOttawaTorontoVancouverChileSantiago
ChinaBeijingChengduGuangzhouShanghaiShenyangColombiaBogotaCosta RicaSan JoseCroatiaZagrebCzech RepublicPragueDenmarkCopenhagenDominican RepublicSanto DomingoEcuadorQuitoEgyptAlexandriaCairoEl SalvadorSan SalvadorFinlandHelsinkiFranceParis
GermanyBerlinDusseldorfFrankfurtMunichGhanaAccraGreeceAthensGuatemalaGuatemala CityHondurasTegucigalpaHong KongHong KongHungaryBudapestIndiaAhmedabadBangaloreCalcuttaChennaiHyderabadMumbaiNew DelhiIndonesiaJakartaIraqBaghdad
IrelandDublinIsraelJerusalemTel AvivItalyFlorenceMilanRomeJapanNagoyaOsaka‐KobeSapporoTokyoJordanAmmanKazakhstanAlmatyKenyaNairobiKorea (South)SeoulKuwaitKuwait CityLebanonBeirutLibyaTripoli
MalaysiaKuala LumpurMexicoGuadalajaraMexico CityMonterreyTijuanaMoroccoCasablancaNetherlandsThe HagueNew ZealandWellingtonNigeriaLagosNorwayOsloPakistanIslamabadKarachiLahorePanamaPanama CityPeruLimaPhilippinesManilaPolandWarsaw
PortugalLisbonQatarDohaRomaniaBucharestRussiaMoscowSt. PetersburgVladivostokSaudi ArabiaDhahranJeddahRiyadhSenegalDakarSerbia & MontenegroBelgradeSingaporeSingaporeSlovak RepublicBratislavaSouth AfricaCape TownJohannesburgSpainMadrid
SwedenStockholmSwitzerlandBernTaiwanKaohsiungTaipeiThailandBangkokTurkeyAnkaraIstanbulIzmirUkraineKievUnited Arab EmiratesAbu DhabiDubaiUnited KingdomLondonUruguayMontevideoVenezuelaCaracasVietnam HanoiHo Chi Minh City
Access Export
ReadinessIdentify Key
Markets
Determine Sales
Potential Implement Export Plan
How We Can Help
Overcome Challenges
Trade Counseling
Market Intelligence
Business Matchmaking
Due Diligence
Trade Events
In‐Country Promotion of Your Products or Services
Commercial Diplomacy
Whether you are looking to make your first export sale or expand to additional international markets, we have the expertise you need to identify and penetrate foreign markets.
Export Counseling
Export Documentation & Regulations Identifying Schedule B/HTS Numbers Foreign Tariffs/Taxes Identifying Foreign Markets Finding Agents, Distributors, Reps, etc. Trade Shows and Events Finding International Buyers International Marketing Strategies Export Finance Resources
Export Finance Resources Vetting/Due Diligence on Foreign
Parties Inco‐terms and How to Get Paid International Shipping & Logistics Certificates of Origin Leveraging Trade Agreements &
Free Trade Zones Foreign Import Requirements Export Controls
Aerospace & Defense Sales Issues International Traffic in Arms Regulation (ITAR):
– Directorate of Defense Trade Controls, Department of State
pmddtc.state.gov
Export Administration Regulations (EAR)– Department of Commerce, Bureau of Industry & Security
www.bis.doc.gov
Foreign Military Sales (FMS)– Department of Defense, Defense Security Cooperation Agency
www.dcsa.osd.mil
Country Commercial Guides
- Leverage reports, prepared annually by U.S. Embassy staff, containing information on the business, economic and political environments in foreign countries
Foreign Market Conditions
- Industry‐specific market research reports and analysis
- Country‐specific tariff, tax and regulatory information
International Demand Forecasting
– Data mining and predictive analytics
– Target foreign markets with highest demand for your products
Market Intelligence
International Partner Search (IPS)
You provide your marketing materials and background on your company
We utilize our network of international contacts to interview potential partners and provide you with a list of pre-qualified candidates.
Save valuable time and money by working only with pre-qualified international candidates that are interested in selling your products and services.
Obtain high-quality market information on the marketability and sales potential for your products and services.
Gold Key Matching Service (GKS)
Pre-screened appointment schedule arranged for you before you travel overseas
Customized market and industry briefings with our local trade specialists at U.S. Embassies and Consulates
Timely and relevant market research
Post-meeting debriefing with our trade specialists and assistance in developing appropriate follow-up strategies
Help with travel, accommodations, interpreter service, and clerical support, etc.
International Company Profile (ICP)Determine whether an overseas company or individual is a suitable partner:
- Management details
- Business activities
- Product/service lines
- Financial condition
- Credit-worthiness
- Trading experience
- Market coverage
- Business connections in the target country.
Single Company Promotion (SCP) This service provides support and official sponsorship in a specific
market under the auspices of the American Embassy or Consulate. – Product launches– Technical seminars
– Networking receptions
Held in a well recognized location, such as a hotel or in some cases, the U.S. Ambassador's residence.
A typical event might include a 3-hour program with an introduction by a U.S. Government official followed by detailed company presentation and question/answer session followed by a networking session.
Trade Shows/Trade Missions
International Trade Shows– U.S. pavilions put you in the best international trade shows with
access to thousands of buyers. – one-on-one meetings with potential buyers.
International Buyer Program (IBP)– U.S. Department of Commerce selects leading domestic trade shows
to promote through its global network of offices and contacts.– U.S. Commercial Service staff in our Embassies and Consulates
abroad recruit and bring delegations of qualified buyers, prospective representatives and distributors to domestic trade shows.
– U.S. Commercial Service staff then facilitates meetings between buyers and exhibitors.
International Trade Missions– Opportunity to meet with distributors, government and industry
officials, prospective customers, and U.S. Embassy officials.
Commercial Diplomacy
Overcome trade obstacles to successfully enter international markets.
Access U.S. government trade advocacy for your foreign government procurement bids.
- Visits to key foreign officials by high-ranking U.S. officials
- Direct support from U.S. officials stationed overseas
- Letters to foreign decision-makers
Level the international playing field for your company
Global Aerospace and Defense Team
Over 200 members worldwide Supporting over 21,000 clients in over 3,800 aerospace and
defense related organizations Nationally partnering with 5 official CS partners and
collaborating with 4 others Self funded activities
Sample of Team Activities
Client Development, buyer, seller match making External (private sector) industry training for team members Topical Webinars Trade Missions Global Matchmaking Receptions Show-Time: trade counseling by country at major trade shows Large Networking Events Customized value-added services for US Exporters Market Research Partnership Development Export Controls Seminars
www.export.gov/industry/aerospace
Aerospace And Defense Markets To Be Covered
Canada China France Germany India Israel Singapore South Korea Turkey
Canada
General Overview•In 2011, it generated approximately $22 billion•14 largest aerospace companies generate 51% of jobs and account for 65% of payroll•Key clusters are Montreal, Quebec (approx. 55% of the Canadian market) and Ontario (approx. 18%)
General Overview•In 2011, it generated approximately $22 billion•14 largest aerospace companies generate 51% of jobs and account for 65% of payroll•Key clusters are Montreal, Quebec (approx. 55% of the Canadian market) and Ontario (approx. 18%)
Civil Aircraft Sector•83% of output is from civil aircraft manufacturing; military is 17%•In the U.S., military is 56% of output, civil is 44% output
Civil Aircraft Sector•83% of output is from civil aircraft manufacturing; military is 17%•In the U.S., military is 56% of output, civil is 44% output
International Trade•Over 82% of production is exported •Over 50% of production is sold to the U.S.
International Trade•Over 82% of production is exported •Over 50% of production is sold to the U.S.
Key Facts about Canada’s Aerospace Industry
The Canadian aerospace market is uniquely well positioned for capturing a significant portion of the next generation aircraft’s production
Canada is Home to Leading Aerospace Players
Canadian American European
Source: http://www.aiac.ca/canadas‐aerospace‐industry/industry‐statistics/
Composition of the Canadian Aerospace Market
Canada’s Aerospace Sub‐Sectors
Aircraft and Aircraft Parts
BombardierBombardier
Bell Helicopter Textron
Bell Helicopter Textron
EurocopterEurocopter
MRO
Innotech ExecaireInnotech Execaire
StandardAeroStandardAero
Engine and Engine Parts
Rolls Royce Canada
Rolls Royce Canada
Pratt & Whitney Canada
Pratt & Whitney Canada
TurbomecaTurbomeca
Simulations and Training
CAECAE
MechtronixMechtronix
Systems CanadaSystems Canada
Avionics and Electrical Systems
EsterlineCMC
Electronics
EsterlineCMC
Electronics
Air DataAir Data
Lockheed Martin Canada
Lockheed Martin Canada
Space
MDA Corporation
MDA Corporation
ABB BomenABB Bomen
Trends on Canadian Aerospace Market
Emerging Markets•Demand for civil aircraft that cannot be met by domestic manufacturers ‐ Chinese nationals alone are reportedly looking to purchase 200 business aircrafts
•Higher demand for single aisle aircraft with less than 200 seat capacity ‐ Canadian aerospace manufacturers’ core competency
Green Technology•Green Aviation Research and Development Network (GARDN)
• Thriving composites industry
•Major Canadian aerospace manufacturers expect their aircraft nitrous oxide emissions and noise levels to be reduced by 80% and 50% respectively
MRO Centers•Canada has several established MRO hubs in provinces like Manitoba and Quebec
•Most airlines state that they have underinvested in MRO activity – positioning Canada as a leading global MRO hub
•Canada has a vast engine MRO capability, ranging from small turbo shafts and turbo tops to large turbo fan engines
Canada and US Defense Procurement
Defense Production & Development Sharing Agreement
The Canadian ITARExemption
Canada First Defense Strategy
U.S. companies can bid on Canadian government projects (www.merx.com)
http://www.law.cornell.edu/cfr/text/22/126.5
A Few ResourcesFrom the Canadian Government
National: Industry Canada – Aerospace and Defense (http://www.ig.gc.ca/eic/site/ad‐ad.nsf/eng/home)
Invest in Canada – Aerospace (http://investincanada.gc.ca/eng/industry‐sectors/aerospace.aspx)
Canadian Space Agency (CSA) (http://www.asc-csa.gc.ca/eng/default.asp)
Provincial: Quebec: Investissement Québec ‐ Aerospace (http://www.investquebec.com/en/index.aspx?rubrique=23) Ontario: Invest in Ontario (http://www.sse.gov.on.ca/medt/investinontario/en/Pages/OS_aerospace.aspx)
A Few Resources
Associations
Aerospace Industries Association of Canada (www.aiac.ca)
Canadian Business Aviation Association (http://www.cbaa.ca/)
Quebec Aerospace Association (www.aqa.ca)
Ontario Aerospace Council (www.ontaero.org)
Aéro Montréal – Montréal’s Aerospace Cluster (http://www.aeromontreal.ca/homepage/)
Media
Wings Canada (www.wingsmagazine.ca)
Plein Vol (www.pleinvol.com)
From Aerospace Associations and Media in Canada
Upcoming Events in Canada
International Conference on Composite Materials (ICCM 19)July 28 - August 2, 2013 in Montréal, Canadahttp://www.iccm19.org/index.htm
Aéro Montréal Aerospace innovation Forum 2013December 2 – 4, 2013 in Montréal, Canadahttp://www.aeromontreal.ca/forum2011-en/
Gina BentoU.S. Commercial Service Montreal [email protected]
China
Chinese Aviation Manufacturing Org Chart
Chinese Aviation Manufacturing Org Chart
US manufacturers will supply COMAC
Drivers of Aviation Growth
• Planned addition of 55+ airports in the next 5 years
• 100+ to be expanded, 14 relocated, 70 new and 28 planned
• Focus on second- and third-tier cities
• Probable expansion of regional carrier capabilities
Case Study: Airports
• Significantly improve ATC technologies to expand capacity and increase efficiency.
• Low Altitude Airspace Reform accelerating growth of General Aviation
• Political Support for COMAC C919
Policy Support
Bottlenecks Threaten Growth
Infrastructure Human Resources Airspace Constraints Weak Policy & Regulatory
Environment
• 1/3 of all traffic is concentrated in top three airports
• 2/3 concentrated in top 14
• Lack of adequate GA/FBO infrastructure
• Too few pilots and engineers
• Insufficient regulatory manpower & lack of experience
• Unclear laws guiding development of GA
• Military dominates control of airspace
Opportunities Exist
Airport Infrastructure
• Design & Engineering• Baggage System Design• Heavy Equipment
Parts / MRO• Avionics• Metals & Composites• Aftermarket Parts• MRO
Pilot & Engineer Training• FBO Development• PPL Training• Customized Applications
General Aviation• FBO Development• PPL Training• Customized Applications
Take a “China Ready” Assessment Survey :www.export.gov/china
Export Experience
Senior Level Commitment
Financial Resources
Due Diligence
Regulatory Issues
IP Strategy
Is Your Company China Ready?
Aviation Cooperation Program
Public Private Partnership chaired by FAA and Boeing
50+ US corporate members Technical programs with Chinese
counterparts Workshops sponsored by committees
– Leadership & Professional Development– Manufacturing & Airworthiness– Airspace & Environment– Airports– General and Regional Aviation– Airline Economic Regulatory Group
Stronger relationships and increased sales
Upcoming Aerospace Events in ChinaChina Civil Aviation Development ForumMay16-17, 2013Venue: China World Trade Center, BeijingOrganizer: Civil Aviation Authority of China (CAAC)Website: http://www.ccadf.cn/ccadfEN/indexen.htmThe only aviation event organized by the CAAC, China’s largest business & policy event focused exclusively on commercial aviation
MRO Expo China 2013October 16-18, 2013Venue: Xiamen International Conference & Exhibition CenterOrganizer: China Aviation Publishing & Media Co., Ltd. (CAPMC)Website: http://www.aviationmrochina.com/Aims to strengthen international communication and cooperation and serves as a high-level platform for businesses and clients to share their achievements in aviation maintenance.
Air Show China 2014Date: Nov. 11-16, 2012Website: http://www.airshow.com.cn/en/China International Aviation & Aerospace Exhibition (Airshow China or Zhuhai Airshow) is the only international aerospace trade show in China endorsed by the Chinese central government. It features the display of real-size products, trade talks, technological exchange and flying display.
US CS China Contacts
Beijing [email protected] Shanghai [email protected] Shenyang [email protected] Guangzhou [email protected] Chengdu [email protected]
Turkey
Total air travel increased 200% between 2001-2010 Turkish Airlines or THY is the largest player in the market with 7 subsidiaries
including lower cost airlines, MRO, cargo, fuel storage and refueling services and ground services.
Turks are frequent flyers and the number of airlines has doubled in the last 10 years.
61 air taxi operation companies as of 2009; Regional Airlines will ensure further growth. Turkish Airlines, Anadolu Jet,
Pegasus and Bora Jet emphasize the growth of the regional airline market; With a fleet of 181 aircraft, Turkish Airlines has an established growth rate of
11% per year. Passenger load for 2011 reached 32.6 million. By the end of 2011, the number of flight destinations reached 189 (149 international and 40 domestic) from 104 in 2003;
Turkish Airlines flies to the most destinations nonstop from a single airport, than any other European or Middle Eastern airline (the hub being Istanbul).
Maintenance, Repair, Overhaul Turkey is aiming to be an MRO hub catering to markets in Middle-East, N. Africa, Balkans
and Caucasus. Competitive prices compared to other MRO hubs in region (Germany, France, U.K., Singapore). There are 55 countries within a 3-hour flying radius of Istanbul;
Turkish Technic or Turk Teknik is the leading aircraft maintenance, repair and overhaul (MRO) services company in the region with over 3,000 employees, based in Istanbul’s Ataturk Airport. Services include airframe heavy maintenance, engine and APU overhaul, LDG (landing gear) overhaul. Turkish Technic back shops are certified for over 4,000 Boeing and 4,000 Airbus aircraft components.
» Pratt & Whitney-Turkish Technic investment for MRO center $150 million joint venture;
» Goodrich-Turkish Technic, landing systems MRO hub for $5 million expected to reach $20 million investment over next five years;
» Turkish Technic’s HABOM project will create a major MRO center in Sabiha Gokcen Airport. HABOM is estimated to generate $1 billion share of MRO market by 2020.
Key Investments
Airports: Key Projects
Cukurova AirportLocation: Near Mersin, southern TurkeyModel: Turnkey BOT Airport Construction
Third Istanbul AirportLocation: IstanbulModel: Likely BOT Turnkey
Ordu-Giresun AirportLocation: Northern Turkey, in between Ordu and GiresunModel: Turnkey BOT Airport Construction
Various Runway, Taxiway and Apron Construction ProjectsLocation: CountrywideModel: DHMI Tender
Year Satellite Name
Comments
2012 Gokturk II Electro optical reconnaissance and observation
2013 Gokturk I Electro optical reconnaissance and observation
2013 Turksat 4A Communications
2014 Turksat 4B Communications
2015 Turksat 4R Communications
2015 Gokturk III Synthetic aperture radar (SAR)
2016 Turksat 5A Communications
2016 BKZS‐I Infrared early warning satellite
2016 SBIRS Infrared early warning satellite
2017 Turksat 5B Communications
2017 BKZS‐2 Infrared early warning satellite
2018 Gokturk IV Electro optical reconnaissance and observation
2018 BKZS‐3 Infrared early warning satellite
2018 BKZS‐4 Infrared early warning satellite
2019 BKZS‐5 Infrared early warning satellite
2019 BKZS‐6 Infrared early warning satellite
2020 Gokturk V Synthetic aperture radar (SAR)
•A total of 17 satellite programs are expected to come into orbit from 2012 to 2020. Over the next five years satellite contracts will amount to $2 billion (projected). •Turkey is setting up a Space Technologies Directorate under the supervision of the Transportation Ministry.
52
Satellite Opportunities
Turkey’s Best Prospects
• Aircraft, aircraft parts • MRO services (maintenance, repair
and overhaul –including airframe/component maintenance, routable logistics and/or fleet management options)
• Pilot Training, equipment & software• Radar and flight control personnel
training• Airport ground support and ancillary
(support) systems(integrated computer systems for air traffic control,engineering and operations)
• ILS Systems/automated landing systems
• Navigation aids• Airport Security Systems
Best Prospect SectorAircraftAircraft Parts
X‐Ray Technology / Airport Security Systems, Mechanical Systems
Satellites
Civil Aviation, Air TrafficControl
Companies and/or Countries
Competition: The Usual Suspects
Events in Turkey and Contact Information
IDEF 2013Istanbul, TurkeyMay 7-10, 2013http://www.idef13.com/en/index.phpRegional event covering defense and aviation
Ozge CirikaU.S. Commercial Service [email protected]+90-312-457-7169
South Korea: 60 Years of Shared Prosperity
In 2013 the U.S. celebrates its 60 year-old alliance with Korea.
It is a partnership of shared prosperity based on a Commitment to Security on the Korean Peninsula
March 15th, 2013 we celebrate the one year anniversary of the Korea-U.S Free Trade Agreement known as KORUS.
Our total bilateral trade increased to $125 billion in 2012. Korea continues to be our 7th largest trading partner.
Commercial Service KOREA
The Korea-U.S. Free Trade Agreement (KORUS-FTA) is at it’s one year anniversary as of March 15, 2013
Summary of the Defense Industry on the Peninsula
South Korea has the 6th largest military in the world and is a major defense/security ally to the U.S.– North Korea has the 5th largest military in the world.
$8.5 billion budget for imports accounting for approx. $1.8 billion (2010).
U.S. has the highest share with 70% of the import market followed by Israel, U.K., and Germany.
Massive defense reforms are underway to transition to a smaller but more capable force structure.
More advanced fighters, surveillance aircraft, naval platforms, and ground combat vehicles are sought
The Republic of Korea’s defense industry budget has been continuously increasing
Source: Business Monitor International, Q1 2013, www.businessmontior.com. South Korea: Defence & Security Report. ISSN 1749-1665
Industry Trends and Developments
Key objectives of the Ministry of National Defense (MND)Optimize indigenous production,Diversify suppliersBolster air and space power; andProcure sophisticated technology in the continual process of modernizing and advancing the Korean defense sector and its exports.Source: Business Monitor International, Q1 2013, www.businessmontior.com. South Korea: Defence & Security Report. ISSN 1749-1665, p. 59
Key Players in South Korea’s Defense Sector Daewoo Heavy Industries and Machinery DSME Hanjin Heavy Industries Hyundai Heavy Industries Korea Aerospace Industries LG Innotek Royal Thales Nederland Samgong Industries Samsung Techwin Samsung Thales Ssangyong Heavy Industries
Source: Business Monitor International, Q1 2013, www.businessmontior.com. South Korea: Defence & Security Report. ISSN 1749-1665, p. 63
INFORMATION ON RELATED ORGANIZATION
DAPA Defense Acquisition Program Administration
MND Ministry of National Defense
ADD Agency for Defense Development
JUSMAG Joint United States Military Advisory Group
PPS Public Procurement Service
http://www.dapa.go.kr/eng
http://www.mnd.go.kr/eng
http://www.add.re.kr/eng
www.pps.go.kr/english/
Some Additional Resources
Korea Aerospace Institutes (KAI) http://www.kari.re.kr/Korea Aerospace University (KAU) www.wkau.ac.kr/ftcKorea’s Country Commercial Guide http://export.gov/southkorea/Korea Economic Research Institute www.keri.orgKorea Statistics http://www.kostat.go.kr/eng/Seoul Air Show www.seoulairshow.com/
U.S. Commercial Service KOREA
Sunny ParkCommercial Specialist, US Embassy Seoul
[email protected]‐2‐397‐4164
U.S. EMBASSY SEOUL COMMERCIAL SERVICE 주한미국대사관상무부
JOIN THE
U.S.A. PAVILION AT SEOUL’s AIR SHOW Seoul ADEX 2013October 29 – November 3, 2013
KINTEX and Cheongju International Airport
Seoul ADEX 2011 included:•Over 314 companies from 31 countries•20,720sqm Stand Area/ 95,000sqm Outdoor Space• 73 Aircraft, 46 Ground Equipment Static Display• 81 Official Delegations from 52 Countries• 100,915 Trade Visitors during Business Days•Indoor Exhibitions•Static Display Aircraft Demonstration / Acrobatic Flights •Demo-Maneuver of Ground Equipment •Conference & Seminars
Contact: Jason SprouleTel: (949) 660‐7105
Singapore
Singapore Government (GOS) adopts liberalized aviation policy and encourages open-air policy
Aerospace is high value-added industry and prioritized for promotion Annual output totaled US$7.25 billion Industry forecasts to grow at 10% annually (projected growth is US$11.5
billion by 2018)
Aerospace Industry Profile
Maintenance, Repair and Overhaul (MRO) dominates 90% of industry output (US$7.25 billion)
Most comprehensive MRO hub in Asia Pacific: 25% share of Asian market & 6% share of global market
Aerospace Industry Profile
World-class aerospace systems manufacturing: engine components, landing gears, aircraft structural components and avionics parts & systems
Diverse aviation-related services including asset management, leasing & flight support
Strong Government support in aerospace R&D
Best Prospects
Great opportunities for most sub-sectors, ranging from:
Aircraft repair equipment for MRO
High value-added aerospace components
Complete sub-assemblies and aircraft systems
Sub-components for aero-engines
Avionics sub-assembly and systems
Prospective Buyers
Major airlines like Singapore Airlines, SilkAir, Tiger Airways, Jetstar Asia and SCOOT + 100 other airlines operating from Changi Airport
Principal MRO stations like Singapore Technologies Aerospace, SIA Engineering Company, SASCO, P&W, GE & Rolls Royce
RSAF (F-5, F-15, F-16, C-130, KC-135, Chinook, Apache, S-70B, Gulfstream 550)
Distribution/Trading outfits servicing the Asia Pacific market
Overview of Singapore’s Defense Industry
Singapore Government (GOS) perceives defense as a necessary
investment for peace & stability and to protect vital interests
Singapore Armed Forces consist: Army, Navy and Air Force
Annual defense budget is capped at 6.0% GDP
FY2013 Defense Budget: US$10.3 billion (S$12.34 billion): an increase of
4.3% over 2012
Best Prospects Great opportunities for most sub-sectors, ranging from:
Integrated systems to enhance interoperability between the three services
High aerial trajectory object detection systems
Unmanned Aerial Systems
Stealth materials/components
Prospective Buyers
Primary Users - Singapore Armed Forces
Defense Science & Technology Agency – procurement & engineering arm of MINDEF
Procurement website – http://www.gebiz.gov.sg
Market Entry
Supply based on Tender specifications by DSTA
Competitive Pricing & Suitability of Equipment/Systems
Sale channels: long term agents/distributors
Financing strategies: L/C up to 120 days credit term
Performance Bonds
Competition
Singapore is a free market economy: any legitimate suppliers are allowed to do business in Singapore
Practically all nationality of defense related suppliers have some forms of establishment in Singapore: own office or representative
Major players include: Raytheon, Boeing, Honeywell, GE, Lockheed Martin, Thales, BAE Systems, Rafael, Soltam, and Pyser.
Singapore Air ShowFebruary 10-14, 2014Aerospace Executive Service Programhttp://export.gov/california/irvine
Market Briefing Daily transportation to and from AESTM hotel and Singapore Air Show; Pre-scheduled meetings with potential partners, distributors, and end users recruited by
the Commercial Service; Access to Official U.S. Pavilion/BIO amenities, including meeting area and shared
business center when not in use for AsiaNow one-on-one appointments; Individual kiosk space (4.0 m²) within the U.S. Pavilion for displaying company literature
and posters and conducting meetings (Floor Plan); Meetings with Commercial Service aerospace and defense industry specialists from U.S.
Embassies and Consulates across Asia; On site assistance from AESTM program coordinator.
NG Haw ChengCommercial SpecialistU.S. Commercial Service SingaporeTel: +65-6476-9037Email: [email protected]: http://www.buyusa.gov/singapore
India
Defense sector—imports 70% of armament needs– World’s leading importer of weapons (since 2011)– Russia ($20b) and Israel ($10b) are lead defense suppliers– US provides $8b under FMS program
India MOD– Department of Defense Production (DDP)– Department of Defense Research & Development Organization
(DRDO)– Department of Ex-Servicemen Welfare – Finance Division
Defense Expenditures
US$42.6 billion defense expenditure by 2015!
Defense Opportunities
Unmanned combat aerial vehicles (UCAVs) Advanced electronic warfare systems Combat systems Rocket and missile systems Fighter and trainer aircraft Stealth frigates Submarines ICT
Factors to Consider
Opportunities• DCS or FMS• Training Institute/University• Partner with private firm to manufacture for gov’t tenders
Obstacles• Lack of professional acquisition workforce in MOD• Lack of transparency• Lack of infrastructure• Shortage of skilled workforce to discharge offsets• Long approval timeframe
Civil Aviation Opportunities
Engineering, Procurement, Management MRO Training Institute/University Lessor for large body, business jet, turbo prop, twin engine, single engine
aircraft Airport operator GA Operator, tier 2-3 cities
Trade Events and CS New Delhi ContactDEFEXPO 2014Pragati Maidan, New DelhiFebruary, 2014http://www.defexpoindia.in
Indian Business Aviation Expo 2013New DelhiNovember 5-6, 2013http://www.miuevents.com/ibae2013
MRO India 2013MumbaiNovember 7-9, 2013http://www.mroindia.com
India Aviation 2014HyderabadMarch 12-16, 2014www.india-aviation.in
Jitender JassalSenior Commercial [email protected]+91 11 2347 2187
United Kingdom
The UK aerospace industry is the largest in in Europe and second to the U.S globally.
2010 market value: $36 billion (est.)
UK aerospace defense sector 2009 turnover: $18.5 b (£11.5 b)
UK civil aerospace 2009 market : est. $17 b (£10.62 b).
UK supply chain includes over 9,000 companies.
The UK aerospace industry involved in major global programs
UK aerospace industry has improved over the last year and has ridden out the storm fairly well compared to many other sectors in the UK.
70% of the revenues are from export markets
* Source: A|D|S
UK aerospace industry sales by customer 2009 (est.)
Space4%
Missiles5%
Aircraft Engines23%
Aircraft Maintenance6%
Defence Aircraft21.2%
Helicopters4.6%
Large Civil Aircra8.7%
Regional Jets2.5%
Aircraft Equipment25%
Other and Business Jets0.4%
aircraft systems & frames37%
Snapshot: UK Aerospace Market
Products in greatest demand in the UK include aircraft systems and frames, engines and equipment.
The UK’s maintenance, repair, overhaul holds 17% market share of a $45 b per year global industry.*
The UK MRO sector has an estimated turnover of $9.6bn – approximately 30% of aerospace turnover
The UK has 8% of the global market share ($120 b globally) in the sector.
Over 450 MRO companies in the UK employing 30,000+
UK growth in the MRO market expected to grow slower than global pace (1.9% estimated)
*Source: ADS
Key UK Aerospace Capabilities
Manufacture of wings Leader in related composite applications Engine manufacturers Manufacturing of military products and subsystems MRO UAVs
Main Competitors: • Airbus (wings)• Rolls‐Royce (engines)
Market Capabilities
• Aircraft systems• Frames• Engines• Equipment
Best Prospects for US Exports
• Farnborough International Air Show– July 14-20, 2014 – www.farnborough.com
• DSEI– September 10-13, 2013– http://www.dsei.co.uk/
• Helitech– September 24-26, 2013– http://www.helitechevents.com/
Major Trade Shows
]A|D|S Group www.adsgroup.org.ukBritish Business and General Aviation Association (BBGA) www.bbga.aeroCivil Aviation Authority (CAA) www.caa.co.ukDepartment for Business, Innovation and Skills (BIS) www.bis.gov.ukDepartment for Transport (DfT) www.dft.gov.uk
UK: Trade Associations
Richard StanbridgeHead of Industry Team
[email protected]+44 (0)20 7894 0419
France is the world’s fifth largestindustrialized economy
In 2009, France’s aerospace industry total turnover of 35.8 billion Euros (civil and air defense) in 2009.
There is still no larger market in the world for US aerospace products than Western Europe as a whole
French firms are interested in procuring in the dollar zone.
European suppliers are both competitors and partners to US firms.
Very strong industrial base : many of the equipment systems firms do business with both Boeing and Airbus
France
Major French Manufacturers
DAHER SOCATA (Daher Group) – light aircraft and business turbopropshttp://www.daher.com/cms/aerospaceEADS ATR – regional turbopropshttp://www.atraircraft.com/home.htmlDASSAULT AVIATION (Falcon Jet) – biz jets and fightershttp://www.dassault‐aviation.com/en/falcon.html?L=1EADS EUROCOPTER ‐ helicoptershttp://www.eurocopter.com/site/en/ref/home.htmlEADS AIRBUS – large aircrafthttp://www.airbus.com/GECI Aviation—light aircraft, formerly Reims Aviationhttp://www.geciaviation.com/en/
France: Sourcing Options
Market Access
Value for Cost
Technical Expertise
Risk Management
France: Opportunities
Civil Aviation vs. Defense– 75% of French aerospace industry concentrated in civilian aircraft
Development Programs– ATR, Eurocopter, Dassault
LEAP Engine
France: Trade Shows
Aeromart Toulouse http://www.bciaerospace.com/toulouse/– Dec 4‐6, 2012– Aeromart consists of one on one buyer/seller meetings
JEC Composites Show http://www.jeccomposites.com/– March 2012 – JEC is Europe’s largest composites show
Paris Air Show http://www.paris‐air‐show.com/– June 2013– The Paris Air Show is one of the world’s largest civil and defense aviation
trade shows.
Ms. Cara BoulesteixTrade Specialist, Aerospace&[email protected]+33 (0)1 43 12 70 79
Germany: Market Overview– EUR 25.7 billion in revenues
– 93,700 direct employees, 850,000 indirect employees throughout supply chain.
– Interests of this major industrial sector are promoted by German Aerospace Industries Association (BDLI – http://www.bdli.de) with 190 member companies (like AIA in the U.S. or GIFAS in France).
– Some BDLI member companies are U.S.-owned (e.g., Northrop Grumman LITEF).
– Solid growth rates between 4.1% (2011); 4.7% (2010) and 12% (2008)
• biggest revenue generator.
– Defense and security grew by 4.6% to EUR 6 billion, 25.4% market share.
– German defense budget, EUR 31.5 billion, 1.4% increase over 2010.
Germany: Market Entry
Access to major aircraft programs– EADS/Airbus
• Target of sourcing 40% outside of Western Europe by 2020!• EADS Airbus Global Sourcing Network (GSN) has been created to
promote globalization of EADS' sourcing footprint.• Nov 2010, joint U.S. procurement office founded by EADS North
America and Airbus Americas (Herndon, Virginia).• http://www.eads.com/eads/int/en/our-company/our-global-
sourcing.html
Germany: Market Access
– Airbus Sites in Germany
– Hamburg: headquarters, final assembly of A318, A319, A321; Centre of Excellence - Fuselage and Cabin, cabin interiors for A320 family and A380, A380 paint shop, A380 major component assembly hall.
– Bremen: Centre of Excellence - Wing/Pylon, design and manufacturing of high-lift systems for the wings for all Airbus a/c.
– Stade: vertical tail planes for all Airbus a/c.
– Buxtehude: Center of Excellence - Fuselage and Cabin, all electronic communications and cabin management systems.
Germany: Market Entry
Tier 1 suppliers– Liebherr-Aerospace Lindenberg GmbH, Lindenberg
Air conditioning and hydraulic actuation systems
– Diehl Aircabin GmbH, Laupheim, joint Diehl Thales company
Cabin and system elements
– Premium AEROTEC GmbH, Augsburg (still part of EADS)
Aerostructures
Wants to become leading Tier I supplier for commercial and military aircraft structures within the next few years.
Germany: Trade Associations
German Aerospace Industries Association (BDLI) http://www.bdli.de German Airport Technology & Equipment http://www.gate-online.org HANSE AEROSPACE e.V. http://www.hanse-aerospace.net ALROUND (Association of Aerospace-oriented SMEs in Germany)
http://www.alround.de
Germany: Major Trade Shows
AERO 2012 http://www.aero-expo.comInternational trade fair for general aviation and ideal stepping stone to enter the European market. The range of exhibits comprises business jets, single and twin-engine aircraft, light aircraft (UL, VLA, LSA), motor gliders, kit planes, helicopters, propulsion systems, components, avionics, and more.
ILA 2012 Berlin, September 11-16 http://www.ila-berlin.de/ila2012/home/index_e.cfmBiennial trade fair and leading marketing platform for the aerospace industry in Continental Europe. The segments are Commercial Air Transport, Space, Defense and Security, International Suppliers Center (ISC), HeliCenter, Unmanned Aircraft Systems, CareerCenter, Conferences.
Aircraft Interiors Expo 2013 Hamburg, April 9-11 http://www.aircraftinteriorsexpo.com
Moritz v. HolstCommercial [email protected]
+49 (89) 2888‐754
Brazil
Total aircraft imports (2012): US$4.7billion (21% increase)
Key Players– Embraer– Helibras
Large fleet of executive aircraft3rd largest helicopter fleet
Market Trends and Market Entry
OEM qualification process
Local agent– Local law firms
Tier 1 and 2 suppliers
Smaller jets– Good for Embraer and US
suppliers to Embraer Azul Trip Airlines: 12 Embraer
planes Latam Airlines: additional 100
aircraft (Boeing and Airbus) 2014 World Cup and 2016
Olympics– Executive aircraft and
helicopters Offshore oil segment
– Helicopter opportunities MRO (US$600million)
– 5-6% expansion
Trade Events and Associations
EXPO AERO BRASILSão José dos Campos July 11-14, 2013http://www.expoaerobrasil.com.br/eab/?lang=enShowcase for products and services ranging from the production of civil and military aircraft to embedded software for space systems.
LABACE – Business Aviation Conference and ExpoSão Paulo August 14-16, 2013http://abag.org.br/labace2013/Labace is the largest business aviation event held in the Southern Hemisphere.
Associations
AIAB – Brazilian Association of Aerospace Industrieshttp://www.aiab.org.br/english/
ABAG – Brazilian Association of General Aviationwww.agab.org.br
CS Brazil ContactsCommercial AviationMarina KonnoCommercial Specialist, CS Sao Paulo [email protected]+55-11-3250-5033
DefenseDaniele AndrewsSenior Commercial Specialist, CS [email protected]+55 61 3312-7458
AirportsGenard BuritySenior Commercial Specialist, CS Rio de [email protected]+55 21 3823-2401
Israeli Aerospace IndustryMajor Companies
• Strong, diverse industry dominated by three main players:
• IAI – Israeli Aerospace Industries (govt‐owned)• Elbit Systems (public company)• Rafael Advanced Defense Systems (govt‐owned)• Many smaller companies. Useful online database of defense companies: en.sibat.mod.gov.il/Industries/Documents/HLS%20Sales%20Directory.pdf
Israel’s Aerospace Industry
9-10% of sales reinvested in R&D Small Domestic Market. Focus on Exports (75-80% of total production) Global Export Markets, strong focus on Latin America (Brazil) and Asia
(India, South Korea) Penetration in overseas markets through partnerships, acquisitions and
subsidiaries. Participation in major trade shows, e.g. Paris Air Show, Asian Aerospace,
FIDAE, DEFEXPO, Aero India, China Aviation, Eurosatory.
Two Sales Tracks(1) FMS
– MOD purchases est. 90% of its military requirements from the USA with U.S. funding.
– Procurements are channeled through MOD Procurement Mission in NY.
– Israeli Prime Contractors; Procurement – 51% US content.– Sale to MOD/IDF; delivery to MOD or to local industry for integration
into system to be delivered to MOD. – Strong recommendation to engage local representative. – No commission to sales representative Exports Controls no obstacle.
Only challenge is time to delivery. – ODC Chief David B. Spencer, Ltd. Col. USAF,
[email protected]; phone: +972-54-2228738
Two Sales Tracks:(2) Direct Sales to Israel Industry
High probability of re-export. Main Challenge is Export Controls, in particular ITAR. End-User Declaration; need to disclose export destination. Time to Delivery. Need for Intricate Internal Tracking System. Increasingly, looking for alternative sources not requiring licensing, e.g.
South Korea, Taiwan.
US Commercial Service Tel AvivIrit van der Veur
Market Entry Strategies
Importance of a local partner
Seek partners/reps in more than one region
Sensitivity to local business culture
Leverage the knowledge and network of the U.S. Commercial Service
Access the supply chain through systems integrators, in addition to contacting the OEMs
Sign up with OEM supplier programs
A few things to keep in mind…
For More In-Depth Aerospace Market Overviews…
U.S. Commercial Service 2013 Aerospace Resource Guide
Market Intelligence from 40 US Commercial Service Aerospace Specialists worldwide
PDF version available at http://export.gov/industry/aerospace/
Contact details of US Commercial Service international aerospace/defense specialists
Your local US Commercial Service Specialist can be located at:
www.export.gov/industry/aerospaceOr
http://export.gov/usoffices/index.asp