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

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

[email protected]

UKTI Small Business Unit

Howard Gibbs

020 7215 8204

[email protected]

Welsh Government

Ian Jenkins

Business, Enterprise, Technology & Science (BETS)

03000 615887

[email protected]

MoD Defence Suppliers Service

Phil Margerison

030 679 32832

[email protected]

MoD Centre for Defence Enterprise

Jonathan Byrne

01235 438445

[email protected]