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Opportunities

Soar to new heights down under.

Australia is buying! The country’s ever changing fleet — from military aircraft and light attack helicopters to business and commercial jets — means more opportunities for U.S. OEMs and SMEs at Avalon.

Kim Keogh, Project Manager
Kim Keogh
Project Manager
Show Focus

Avalon is organized around these core market sectors.

Commercial Aviation
Most of the world’s long-haul carriers serve destinations throughout Asia and the Indo-Pacific from Australian airports. Operations and MRO services are top-of-mind in this market.

General Aviation
The private jet market in Australia has more than doubled in the past decade. The geography of the Indo-Asia-Pacific region and the sheer size of Australia lends itself to business jets, turbo propeller and propeller aircraft for transportation needs. This, coupled with Parts, MRO and FBO business provides many opportunities for the General Aviation sector

Military Defense Equipment
The modernization of Australia’s defense forces is taking off. According to the Australian Defence White Paper these are the early days of a massive investment in new programs, upgrades and overhauling of aircraft and defense systems for the Royal Air Force and other branches of the Australian military. Many countries in the Indo-Asia-Pacific region are taking advantage of what will be on display at Avalon and are sending their representatives to the show to make contact with suppliers to do business with their respective militaries.

Australian Space Agency
South Australia is home to 70 space-related organizations, companies and educational institutes and is working on projects including the establishment of a world-class satellite positioning capability in Australia. The government is aiming to triple the size of the space economy to $12 billion dollars and create 20,000 new jobs by 2030.  - Prime Minister Scott Morrison  READ MORE



AUSTRALIA AND UNITED STATES ECONOMIC PARTNERSHIP

Australia and the United States are trusted trade and investment partners, conducting US$65 billion in two way trade and an investment relationship valued at US$1.1 trillion, making the United States Australia’s largest economic partner. A quarter of Australia’s inward foreign investment – more than A$860.9 billion is from the United States.

Trade between the US and Australia is underpinned by the Australia-United States Free Trade Agreement (AUSFTA) which came into effect in 2005. Since AUSFTA, exports of US goods to Australia have increased by over 91 per cent.

Some key indicators are:

  • US trade with Australia supports over 300,000 US jobs. Australian companies employ 180,000 people in the US, including over 18,000 in Texas alone.
  • Australia has a diverse economy which is reflected in our economic relationship with the United States. In California for example, there are Australian companies operating in 83 different industries.
  • Australia is the biggest exporter to the United States in beef. Australia also exports aircraft, spacecraft and parts; and pharmaceutical products, excluding medicaments.
  • The US invests more in Australia than in any other country in the Asia-Pacific. Australia’s investment in the US totals almost half a trillion US dollars.
  • The largest American exports to Australia are passenger motor vehicles; aircraft, spacecraft and parts; medical instruments; and measuring and analysing instruments.
  • The US runs a large trade surplus with Australia.
  • Over 1.3 million Australian tourists visit the United States each year, spending more than US $8.7 billion in the US, supporting thousands of jobs.
  • Australia is the third largest source of international tourists to California in the world.

Over 10,000 Australian companies sell to or operate in the United States, including Westfield, Brambles, Atlassian, Vidy and Bluestone Lane.

The Australia-United States Free Trade Agreement (AUSFTA) entered into force on 1 January 2005. Over 97 per cent of Australia's non-agricultural exports to the United States (excluding textiles and clothing) are now duty free, and three quarters of agricultural tariff lines have been eliminated. Under AUSFTA, Australian companies also have access to the federal government procurement market in the United States (valued at over US$535 billion), and the government procurement markets of 31 US states. The trade and investment relationship has flourished under AUSFTA, with two-way trade growing from A$42 billion to over A$64 billion since it came into force.

Australia and the United States have a record of working together closely to further economic prosperity through free and open trade. Australia and the United States worked closely in establishing the G20, and work together in global and regional trade and economic fora, including the World Trade Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC) forum.

INVEST IN AUSTRALIA

Australia is the world’s 13th largest economy. Australia’s highly skilled workforce, robust economy, trusted legal system and stable society make it an attractive place to invest. The stock of foreign investment in Australia exceeds $735 billion.

FIVE REASONS TO INVEST IN AUSTRALIA

  1. 27 years of uninterrupted annual economic growth: Australia's strong, diverse and growing economy adds up to more opportunitiesAustralia’s economy is underpinned by strong institutions, an exceptional services sector and an ability to respond to global change.
  2. World-class innovation: Australia supports world-class, globally significant research and development opportunities.
  3. World's fastest growing region:  With strong trade links, strategic location, a favorable time zone and a highly educated, multilingual workforce, Australia is uniquely positioned as a location to do business in the Indo-Pacific.
  4. Easy to run a business: Ranked in the global top five on the Index of Economic Freedom, Australia’s effective governance provides multinationals with a safe, secure business environment.
  5. Highly skilled workforce: Australia's multilingual workforce is among the most educated and diverse in the world.

 

Australia- Aerospace

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2019-10-13

Overview> Australia is a major buyer of US aircraft parts (HS8803, USD463 million, third largest); powered aircraft (HS8802, USD666 million, second largest); helicopters > 2000kg (HS880212, USD269 million, third largest) and overall for aircraft, spacecraft and parts thereof (HS88, USD2536 million, 15th largest). In 2016, Australia was the largest importer of US helicopters worldwide. Aircraft manufacturing and repair services in Australia generate revenue of USD3 billion – including exports of USD1.5 billion. Boeing Australia has the leading local market share at 38.1% with revenue of approx. USD1.15 billion (AUD1.5 billion), and Boeing maintains its largest presence outside of the United States in Australia.

The United States is the leading source for all of the above categories of imported aircraft and parts into Australia, supplying nearly all of Australia’s military requirements and 60% of Australia’s civilian needs - thereby linking Australia closely to US standards, suppliers, parts, and finished aircraft. US-manufactured aircraft represent a sizeable proportion of the registered aircraft in Australia, ensuring a market for spares, accessories, and service. Other registered aircraft are manufactured in Australia, Germany, the U.K., and France. Australia’s Civil Aviation Safety Authority’s (CASA) acceptance of FAA certification standards strengthens the relationship between Australian and US aircraft and parts exporters.

The Australian aerospace and aviation industry is a mix of small and medium enterprise (SME) subsidiaries that supply parts, engineering services, and expertise. Local firms specialize in repair, maintenance, airframe component manufacturing, airport systems, infrastructure, avionics, aero engine, and engine component manufacturing. A select group of specialists carries out commercial aircraft maintenance.

There are 15,512 aircraft on Australia’s civil aviation register of which 11,551 are powered aircraft; 2259 are helicopters; 996 are gliders; and 423 lighter than air.  Leading brands are Cessna (3622), Piper (1839), amateur built (1588), Robinson Helicopter (1160), Beech  (634), Bell Helicopter (286), Kavanagh Balloons (284), Boeing (257) and De Havilland (237) and Schempp-Hirth Flugzeugbau GmbH (187). There are over 700 design, maintenance, maintenance training, parts manufacturing and parts distribution organizations. Australia is a key market in, and a major distribution point for, the Asia Pacific.
 

  2015 2016 2017 2018 (Estimated)
Total Local Production 2800 2840 3000 3100
Total Exports 1354 1477 1488 1155
Total Imports 3185 3265 3274 3350
Imports from the US
 
2889 2360 2536 2800
Total Market Size 4631 4628 4786 4900
Exchange Rates .75 .74 .77 .77

(total market size = (total local production + imports) - exports)
Unit: USD Thousands
Data Sources: Global Trade Atlas, IBISWorld Australia, Australian aviation industry estimates and analysis as well as tariff and trade data from the US Department of Commerce and the US International Trade Commission. Data retrieved as of 2 July 2018. Leading Sub-Sectors> Defense contracts – all categories
QANTAS fleet upgrade
Parts, repairs and maintenance
Business jets
Helicopters
Aerial agriculture
Unmanned Aerial Vehicles (UAVs)

Australia has a large civil helicopter fleet (2259), ranking fifth worldwide. Helicopters are well suited to supporting remote oil, gas and mining projects as well as island tourist resorts, aeromedical and rescue services, and large agricultural properties. Australia was the largest buyer of US helicopters in 2016. Opportunities> Over the next ten years, the Australian carrier Qantas has committed to about USD12.6 billion (AUD17 billion) for more fuel efficient, next generation aircraft such as the Airbus 380 and the Boeing 787 Dreamliner. Tigerair Australia, the low-cost subsidiary of Virgin Australia, is also transitioning to become an all Boeing 737 operator by 2020 as part of fleet simplification efforts at the Virgin group of airlines. That entails replacing 12 Airbus A320s over three years.

The commercial airline market sources major equipment directly from manufacturers and prefers to obtain OEM spares from approved suppliers.
In Australia, Qantas leads the field in commercial aviation, followed by Virgin Australia. Opportunities in the aviation market include a range of products from avionics to ground support equipment. Best prospects remain in parts and components supplies for aircraft maintenance, repair, and overhaul of US-manufactured airplanes.

Australia announced in March 2016 a 10-year, USD146 billion defense equipment investment program. This includes a heavy focus on various fixed wing, helicopter and UAV aircraft. Australia is a major importer of defense systems – third in 2015, ninth in 2016 – and a leading customer of the US –third in 2015 and 2016.

Australia is also the second largest business jet market in the Asia Pacific – 184 aircraft – and growing rapidly.
Australia is a major helicopter market; operates over 2200 helicopters; offers substantial opportunities in both the civilian and defense sectors; and has a fast-growing trade show called Rotortech dedicated to the helicopter industry.

Show Data

2019 Statistics

U.S. Security Cooperation With Australia

FACT SHEET

Australians and Americans have fought side by side in every major U.S. military conflict of the past century, including World Wars I & II, Korea, Vietnam, Afghanistan, Iraq, and in present-day operations against violent extremist organizations like Al Qaida, the Islamic State, and their global affiliates.  This close partnership was first formalized with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951.  More than 65 years later, the Treaty remains the foundation of our security relationship with Australia.

Australia’s 2016 Defense White Paper supports a robust U.S. presence in the Indo-Pacific, the provision of U.S. extended deterrence, as well as plans to make the Australian Defense Force more capable of independent operations.  Australia spent 1.9 percent of its GDP on defense in FY 2018 and is on track to meet its goal of spending two percent of GDP by 2021.

Australia is one of America’s largest defense customers, supporting thousands of jobs in the United States and maximizing our joint defense capability.  Approximately 60 percent of Australia’s 10-year $145 billion defense acquisition and modernization budget is sourced from the United States through the Foreign Military Sales (FMS), Direct Commercial Sales (DCS), and International Cooperative Programs, like the P-8 Poseidon.

The U.S. has over $25 billion in active government to government sales cases with Australia under the FMS system.  FY 2018 FMS sales totaled $1.47 billion.  FMS sales notified to Congress are listed here, and recent and significant implemented sales include:  Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare Increment 1 Block 1 (JCREW I1B1) Systems and equipment, AEGIS Combat System equipment, MH-60R Multi-Mission Helicopters, F/A-18E/F Super Hornet upgrades, ALE-70 Radio Frequency Countermeasures, plus assorted missiles, bombs, and tank ammunition.

Between January 1, 2014 and September 30, 2019, the Directorate of Defense Trade Controls (DDTC) approved 7,478 Direct Commercial Sales (DCS) licenses for the permanent export of U.S. Munitions List (USML) defense articles to Australia, with a value of $5.6 billion.  The top USML categories for sales were electronics ($1.6 billion); aircraft ($831 million); ammunition ($595 million); fire control, laser, and imaging ($478 million); and gas turbine engines and related equipment ($416 million).  Australia is also one of two countries that have a Defense Trade Cooperation Treaty with United States that permits the license-free export of certain defense articles between the countries in support of combined military operations, cooperative defense research, and other projects for government end-use.

The United States and Australia cooperate closely to advance the stability, security, and prosperity of all states in the Indo-Pacific region.  We are working together to maintain pressure on the DPRK, strengthen regional information sharing and maritime security, counter terrorism and transnational crime, and provide humanitarian assistance and disaster response.

Since 2012, more than 6,800 US Marines have served in Darwin to train alongside the Australian Defense Force.  The rotational force reached its full complement of 2,500 Marines for the first time by July 2019.

The United States and Australia also conduct Exercise Talisman Sabre, a joint, biennial military exercise designed to train military forces from both nations to plan and conduct Combined Task Force operations and improve their interoperability and combat readiness.  Talisman Sabre 2019 was the eighth iteration of the exercise and consists of a Field Training Exercise incorporating logistics, amphibious landings, land force maneuver, urban operations, air operations, maritime operations, and Special Forces activities.

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USA Partnership Pavilion

As an exhibitor in the USA Partnership Pavilion at Land Forces, you start the show with an advantage you can build on. From the design of your stand to the presentation of your brand, Kallman Worldwide’s portfolio of booth, promotion and PR options will elevate your initiatives to new heights.

The USA Partnership Pavilion is your export advantage at Land Forces. Because it presents the highest concentration of USA equipment and services at the show, it's a magnet for buyers looking for American quality, innovation and partnership.

In addition to our complete suite of pre-show, on-site and post-show services, capitalize on the extra attention, activities and access we're planning to generate for American suppliers:

  • Participation of U.S. Commercial Service representatives from countries in and around the Indo-Aisan-Pacific region
  • U.S. Department of Commerce works closely with the USA Partnership Pavilion to ensure maximum exposure to buyers; on-site counseling services are available
  • The Pavilion location is the ideal spot for any company looking to network with local and regional industry leaders
  • A targeted “Ask America” marketing campaign helps spread your brand and your message to a wide audience