Strategic Recommendations by Targeted Sector September 2016 This report was prepared under contract with Washington State Department of Commerce with financial support from the Office of Economic Adjustment Department of Defense The content reflects the views of Washington State Department of ID: 690992
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Slide1
Defense Export Market Reports
Strategic Recommendations by Targeted Sector
September 2016
This report was prepared under contract with Washington State Department of Commerce, with financial support from the Office of Economic Adjustment, Department of Defense. The content reflects the views of Washington State Department of Commerce and does not necessarily reflect the views of the Office of Economic Adjustment or the Department of Defense.Slide2
2DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key
Findings/ConsiderationsStrategyType of AssistanceIndustry-wideForeign Military Sales are an important channel for defense exports.Facilitate communication between Washington vessel manufacturers and federal export programs.Education and training/market research
Foreign militaries put a high
premium on U.S. defense articles but are less aware of Washington maritime defense capabilities.Build brand awareness and marketing. Create information on defense capabilities and translate into Japanese, Korean, and traditional Chinese (Taiwan) for distribution at trade shows and meetings with overseas OEMs.
Advocacy
Many
f
irms are still
unaware of Washington State Department of Commerce services.Continue to disseminate information on Washington State Department of Commerce services through Commerce’s maritime webpage and proactively reach out to contractors.Education and trainingCreate a database of defense contractors willing to talk with each other and share their experiences, tips and ideas. They may be selling different products and services but much of the export basics and challenges will be the same and they can learn from each other’s experiences. Education and trainingProvide technical assistance and information dissemination through the Washington State Department of Commerce and the Procurement Technical Assistance Center.Education and training
MARITIME STRATEGIESSlide3
3DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key
Findings/ConsiderationsStrategyType of AssistanceIndustry-wide (cont.)Contractors need support understanding defense regulations and related technical assistance.
Technical
support. Consider hiring a staff member to focus on technical outreach in the defense market. This position would act as an ombudsperson for maritime (and other sectors) by liaising with technical contacts at DOD and related agencies, and connecting companies to the right resources and contacts. Technical assistance
Contractors need
more information on current and future trends in defense spending globally.
Expand the Washington Military & Defense Economic Impact Tool
to include current information on maritime defense trends. The WMA can be broadened to provide information on maritime defense contractors in Washington through regular newsfeeds, website content, and communication with registered subscribers.
Education and trainingSmall Marine Craft Exports in Japan, Australia, and Vietnam/ASEAN countries Pacific Pivot and increased defense spending among U.S. allies in Asia Pacific, in response to China.Foster contacts and relations with these governments and relevant departments, e.g., with the Acquisition, Technology and Logistics Agency of Japan’s Self-Defense Forces, and lead a delegation to Japan to meet with officials.Education and training
In-market
support
.
Work with the U.S. government in advocacy role in difficult-to-penetrate markets, e.g., Japan.
Advocacy
MARITIME STRATEGIES (cont.)Slide4
4DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key
Findings/ConsiderationsStrategyType of AssistanceShipbuilding Supply Contractor Exports in Germany, Japan, South Korea, Taiwan, and the UK.It can be very difficult to access markets due to vertical integration.Identify potential partners/buyers in these target markets
. Work with companies in Washington that can provide components and have environmental advantages in these markets.
Market research
Reach out to Washington companies
on Washington State Department of Commerce services,
e.g., partner vetting.
Market research
Maintenance and Repair ContractorsHamilton class cutters being decommissioned and gifted to Philippines.Track the transfer of decommissioned vessels to foreign allies. Continue to build relationships and communicae with officials in the Excess Defense Articles and Foreign Military Sales programs to stay abreast of potential future gifts and sales of vessels that require follow-up maintenance.Technical assistanceMARITIME STRATEGIES (cont.)Slide5
5DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key Findings/Considerations
StrategyType of AssistanceIndustry-wide—building relationships for future opportunitiesIt is very difficult/rare to replace existing suppliers in the supply chain. It is critical to get involved early to foster these connections.Lead domestic delegations
to U.S.-based offices of European, Asian, and South American OEMs and tier I suppliers. Airbus
America actively seeks to build relationships with U.S. suppliers.Education and training/market researchCompanies
need to stay ahead on new programs,
e.g., reemergence of turbo-prop class. Number of Washington firms already registered as overseas suppliers to original equipment manufacturers (OEMs).
Convene
events in Washington. Organize a special session at a future aerospace industry conference in Washington to convene defense contractors and overseas OEM representatives.Education and training/market researchFuture programs include U.S. Air Force and Navy craft with foreign tier I suppliers.Lead outbound delegations. Lead an annual outbound delegation of defense contractors to meet with OEMs and tier I suppliers in Europe and Asia, including BAE Systems in the United Kingdom and Korea Aerospace Industries Ltd.Education and training
Airshows provide an
important venue for strengthening relationships with tier I and OEM clients.
Recruit contractors
to attend airshows
. Continue to
actively recruit local defense contractors to participate in the Paris
and
Farnborough Airshows, and consider leading
a delegation to the Dubai Airshow.
Education and training
Zodiac,
Thales, BEA Systems, others have offices in WA.
Leverage
the presence of
overseas firms already located in Washington. Convene meetings between defense contractors in Washington and these overseas offices to discuss opportunities for future supply chain work.Market research
AEROSPACE STRATEGIESSlide6
6DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key Findings/Considerations
StrategyType of AssistanceIndustry-wide—staying informed of current and future trendsSmaller contractors may not have the resources needed to stay on top of important industry trends.Expand the Washington Military & Defense Economic Impact Tool to include current information on aerospace defense trends.Market research
Industry-wide—support innovation among local suppliers
Staying competitive requires investment in innovationHelp firms access DARPA, SBIR, and other grant-supported research. Technical assistance
AEROSPACE STRATEGIES (cont.)Slide7
7DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key
Findings/ConsiderationsStrategyType of AssistanceIndustry-wideMany firms remain unaware of Washington State Department of Commerce services. Engage in proactive outreach and marketing of services. Inform companies in this sector of Washington State Department
of Commerce services, especially the ability to vet potential distributors and representatives.
Education and trainingDisseminate
information
.
Create a section of the Washington State Department of Commerce website with regulatory and other information on medical devices for the target markets in these recommendations.
Education and training
Many current exporters report securing distributors is the most difficult aspect of exporting.Technical assistance. Consider hiring a position to focus on technical outreach in the defense market. This position would act as an ombudsperson for life sciences (and other sectors) by liaising with technical contacts at DOD and related agencies, and by acting as a traffic cop to connect companies to the right resources and contacts.Technical assistanceExpand the Washington Military & Defense Economic Impact Tool to include current information on life sciences defense trends. The tool can be broadened to serve the information gathering needs of life sciences defense contractors in Washington by providing regular newsfeeds and content published on the site as well as sent via SMS and email to registered subscribers.Market researchLIFE SCIENCES & GLOBAL HEALTH STRATEGIESSlide8
8DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key
Findings/ConsiderationsStrategyType of AssistanceJapanJapan has an aging population with a growing need for advanced medical devices and therapies. There are already strong economic and cultural linkages with Washington that can be leveraged.Work with the Japan External Trade Organization and other partners to help firms navigate the Japanese market,
including attendance at Medical Japan.
Market research/ technical assistanceJapan will be a member of the Trans-Pacific Partnership if it is ratified.
Market information
. Create a section on the Washington State Department of Commerce’s website with information on Japanese regulations, barriers and contacts for help.
Education
and training
South KoreaSouth Korea has strong existing trade linkages in Washington.Develop a list of possible Korean distributors.Market researchLeverage relationship with Samsung to help Washington state companies work with the company, a major producer of medical equipment.Market researchMake available info on the Washington State Department of Commerce’s website about South Korea’s National Health Insurance (NHI) system, including what NHI pays and for what products.Education and trainingBrazil
Brazil’s demographic
trends favor U.S. exports there
, but are tempered by
significant market entry barriers, economic downturn, and political instability.
Develop a list of vetted local distributors.
Market
research
Actively make available and raise awareness of the above list
to
Washington companies and
raise awareness of Washington
State Department of
Commerce services offered
.
Education and training
LIFE SCIENCES & GLOBAL HEALTH STRATEGIES (cont.)Slide9
9DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key Findings/Considerations
StrategyType of AssistanceMexicoNearby large market, part of NAFTA. Develop a list of potential distributors and representatives in Mexico.Market research
Actively inform
Washington companies of Commerce’s ability to vet distributors and representatives in Mexico. Market research/education and trainingEuropean Union
(Germany, France, UK, and Austria)
Some of largest healthcare markets in world, measured by total healthcare expenditures and on per capita basis.
Inform
Washington companies on
how to enter these markets and include this information on the Washington State Department of Commerce website.Education and trainingVet distributors and representatives for companies in these markets.Market researchConsider organizing a trip to medical trade shows in the EU, such as MEDICA in Dusseldorf.Market research/education and training
LIFE SCIENCES & GLOBAL HEALTH STRATEGIES (cont.)Slide10
10DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key Findings/Considerations
StrategyType of AssistanceIndustry-wideCompanies need more information on current and future trends in global defense spending.Expand the Washington Military & Defense Economic Impact Tool to include current information on ICT defense trends. The WMA can be broadened to serve the information gathering needs of aerospace defense contractors in Washington by providing regular newsfeeds and content published on the site as well as sent via SMS and email to registered subscribers.Education and training/market research
Companies
need support understanding defense regulations and require related technical assistance.Technical support.
Consider hiring a position to focus on technical outreach in the defense market. This position would act as an ombudsperson for ICT (and other targeted sectors) by liaising with technical contacts at DOD and related agencies, and by acting as a traffic cop to connect companies to the right resources and contacts.
Technical assistance
Many firms remain unaware of the services offered by the Washington State Department of Commerce.
Disseminate information
. Build out and update an information and communication technology sector section of the Washington State Department of Commerce website with information and data on target markets, regulations, financing information, trends, and contact information for the sector lead.Education and trainingOverseas market opportunitiesThe Asia Pacific region is a major and fast-growing market for cybersecurity, and one with which Washington has strong economic and cultural ties.Bring a delegation to one of Singapore’s cybersecurity trade shows. These trade shows, with the assistance and facilitation of the Washington State Department of Commerce, can act as an entrée for the Asia Pacific market. Market researchINFORMATION & COMMUNICATION TECHNOLOGY STRATEGIESSlide11
11DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key Findings/Considerations
StrategyType of AssistanceIndustry-wideCompanies need more information on current and future trends in global defense spending.Expand the Washington Military & Defense Economic Impact Tool to include current information on clean technology defense trends. The WMA can be broadened to serve the information gathering needs of aerospace defense contractors in Washington by providing regular newsfeeds and content published on the site as well as sent via SMS and email to registered subscribers.Education
and training/market research
Companies need support understanding defense regulations and require related technical assistance.Technical
support
.
Consider hiring a position to focus on technical outreach in the defense market. This position would act as an ombudsperson for clean technology (and other targeted sectors) by liaising with technical contacts at DOD and related agencies, and by acting as a traffic cop to connect companies to the right resources and contacts.
Technical assistance
Many firms remain unaware of the services offered by the Washington State Department of Commerce.Disseminate information. Build out and update the section of the Washington State Department of Commerce website with information and data on target markets, regulations, financing information and support, trends and contact info for Clean Technology Sector Lead. Education and trainingCLEAN TECHNOLOGY STRATEGIESSlide12
12DISCUSSION DRAFT -- NOT FOR DISTRIBUTIONSeptember 2016
Opportunity/Theme
Key Findings/Considerations
StrategyType of AssistanceGermanyOne of the largest global markets for clean technology products and services, and entry point into the large EU market.Lead a clean technology delegation to one of the relevant trade fairs in Germany: IFAT, Wasser Berlin International and Hanover Messe (which the Washington State Department of Commerce is already engaged with).Market research
Provide information to Washington companies on how to enter the German market
and include this information on clean tech section on Commerce website.Market research/education and training
Japan
Relationship-driven
market.
Develop a list of possible distributors, representatives and agents in Japan.
Education and trainingRelationship building. Work with JETRO, Japanese Consulate and other Japanese partners to develop relationships with key entities in the clean technology sector of Japan, including the Japanese government.Market research/education and trainingUAEUAE is one of the most viable clean technology markets from a regulatory standpoint. UAE governments and companies are generally open to new technology developed overseas. Develop relationship with the UAE government, including working with TDA and other partners that already have relationships. Develop a relationship with MASDAR and work to introduce them to Washington companies for possible collaboration.Advocacy/market research
Develop a list of possible distributors
,
representatives
and
agents in the UAE.
Market research
CLEAN TECHNOLOGY STRATEGIES (cont.)