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Defence & Security Exporting: Support for Small Businesses Arfan Chaudhry Head, Support to Business.

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Presentation on theme: "Defence & Security Exporting: Support for Small Businesses Arfan Chaudhry Head, Support to Business."— Presentation transcript:

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2 Defence & Security Exporting: Support for Small Businesses Arfan Chaudhry Head, Support to Business

3 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

4 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

5 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

6 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

7 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

8 DSO Regional Directorates Provide market focus to UKTI DSO activity Know the customer Deliver ‘Whitehall’ Customer’s friend In-country support

9 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

10 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

11 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

12 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

13 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

14 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

15 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

16 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 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 Provides more specific policy-related information, etc Announcements/News – Notices to Exporters & Awareness Bulletins Training/Awareness events – UK Export Control Training Academy

17 Export Licensing Applications If your goods appear on a Control List or are subject to end use controls apply for an Export Licence using SPIRE SPIRE - Online application for export of ‘strategic goods’ – military/dual use 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 goods – on-line tool to check classification For sanctions, embargoes and other restrictions

18 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

19 MOI Paramilitary Coastguard Border Agencies Police, Fire Transport Agencies (aviation, rail, ports) Olympics/ sporting & other events PUBLIC SECURITY DEFENCE COMMERCIAL SAFETY & SECURITY UKTI DSO Defence & Security Boundaries

20 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

21 UKTI DSO Priority Markets 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

22 The Small Business Unit Small Business Charter Personal Support Introduction to wider UKTI & DSO services Events/activities Prime contractor network 650 members £750M sales

23 Self-Help Web Based Business Model Interactive/dynamic 3 stage web process Set up business alerts Register at Links to MoD sites for UK sales

24 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

25 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

26 Stage 3 – Access New Markets Defence/Security business opportunities UK/Overseas events & exhibitions ‘Meet the Buyer’ Licensing & Legal Overseas Government/Agency websites

27 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

28 Contacts UKTI DSO Support to Business Arfan Chaudhry UKTI Small Business Unit Howard Gibbs Welsh Government Ian Jenkins Business, Enterprise, Technology & Science (BETS) MoD Defence Suppliers Service Phil Margerison MoD Centre for Defence Enterprise Jonathan Byrne


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