Manufacturing News

Submarines must be priority for new Growth Centre

The Chairman of the Australian Advanced Manufacturing Council, John Pollaers, released the following statement:

The Australian Advanced Manufacturing Council welcomes the appointment by Industry Minister the Hon Ian Macfarlane of the Chairs of the new Industry Growth Centres.

The AAMC believes the five Centres have the potential to play a pivotal role in developing Australia’s post-­commodity boom economy.

The new Advanced Manufacturing Growth Centre must make one of its first priorities capturing long-­term value from Australia's multi-­billion-­dollar submarines contract.

A careful evaluation of how much of the Future Submarine Program can be done in Australia
on a value competitive basis is absolutely essential ‐ and this should be a critical factor in
the procurement decision-­making process. 

Defence procurement can act as a bridge to developing skills and technology uptake across
the manufacturing sector.

The tender and evaluation process should encourage Australian companies to come forward
and join consortia. The Government needs to indicate it will favour -­ all things being equal ‐ proposals that develop Australian advanced manufacturing, and that open the way for Australian businesses to participate in global supply chains.

The U.S. Government uses its procurement clout strategically –  as a means of building the  nation’s small and medium-­sized enterprises.

These contracts are an opportunity for building advanced capabilities and infrastructure.

The acquisition of a new fleet of submarines to replace the Collins Class is one of the single  biggest things Australia will do in coming years.

The cost/value equation for Australia of the submarine program is much more sophisticated
and important to our future than would appear at first  glance.

It has the potential for advanced manufacturing throughout Australia, not just in South Australia.

The AAMC looks forward to working closely with all of the Growth Centres as they develop.


For more information on the AAMC, visit its website

Image: Commonwealth of Australia: Navy Imagery Unit


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