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It is the businesses who have a track record of reliability, performance and quality that are best placed to serve our national Defence procurement needs.
Developing an enduring Australian Capability
It is the businesses who have a track record of reliability, performance and quality that are best placed to serve our national Defence procurement needs. An example of one such company is Elexon Electronics. This Australian owned company prides itself on delivering innovative solutions to customers from ‘niche’ markets all the way to the unmatched ability to offer turnkey solutions of electronics products by using local suppliers and Australian resources.
“Throughout the last 16 years, we have successfully developed a wide range of unique products serving the medical science, mining and automotive industries. This includes one of our pivotal projects which has been the complete development of a robust communication and location device for underground mines. This system now provides secure and reliable communication in mines all over the world. Now we are offering our extensive IP, ability to quickly innovate and state-of-the-art manufacturing facility to the defence suppliers.” Says Frank Faller, the CEO of Elexon Electronics.
Elexon’s growth and development over the past 2 decades means their customers now include many renowned national and international companies such as Rio Tinto, Newcrest, Volvo, Aurizon, Aim Lab, Agilent and EM Solutions.
Strong local supply chain
However, we know that recent turbulent times have proved challenging for Australian manufacturers across many industries, whilst also exposing our over-dependence on international suppliers. We all have realized that our supply chains for critical technologies in Australia must become more resilient.
Story of Elexon Electronics is a great example of how an Australian SME can use government support, improve its operations and confidently find its place in the defence supply chain.
Two years ago, Elexon Electronics started turning their strategic growth plan into reality.
“Like many Australian companies, we also considered offshoring of manufacturing at one stage. However, we’re proud to say a decision was made to keep manufacturing here in Australia. We realized there are immense opportunities especially in the growing defence sector but to be able to offer high-value solutions that meet Australian and International Defence Prime Contractor requirements, we had to transform and invest significantly in technological innovation.”
One of the key elements in Elexons’ Defence-readiness project was the procurement of state-of-the-art automated surface-mount technology (SMT) from leading European electronics machinery producers Mycronic and Asscon. Their new intelligent material handling system, vapour phase soldering, solder paste jetting and X-Ray inspection has given this Australian SME the capability to now tender for projects in highly competitive markets that require fast and versatile production with impeccable precision and integrity of the final products.
Elexon Electronics’ CEO also added that “We were fortunate to make this significant $2million investment in our manufacturing capabilities through our partnership with the Queensland Government and the Made in Queensland grant program. The result is a truly world-class production system that puts Elexon Electronics on the map of advanced manufacturing in Australia.”
Technological progress never stops, especially for Elexon. In this fast-changing industry, it is crucial to focus on building agile capabilities. Elexon’s next step is a significant investment in new testing capabilities.
Defence networking
A high-tech technology and process improvement isn’t everything though. Brand awareness and marketing, networking and creating partnerships is a vital part of business development.
“Participation in Defence networking associations like AIDN has skyrocketed our defence journey,” reveals Frank Faller. AIDN works to assist small to medium enterprises (SMEs) to build opportunities with Defence and Defence prime contractors. AIDN focuses on SMEs, works with Defence to influence policy and to maximise SME involvement in Defence procurement.
Another source of support are industry consultants who’s role is to provide SMEs with industry development and market awareness services. They help businesses grow and increase their presence in Defence markets. One of those is Les Shearn from Shearn Consulting who is an experienced advisor in guiding companies like Elexon along the path towards being ready to take on defence market opportunities.
Les says that “It is important that any SME seeking to work in the Defence Sector has done their homework to determine whether the defence industry offers the opportunities that suit the business. If so, having a Quad Chart reflecting the Company’s differentiators as well as capabilities and either having in place or working towards accreditations such as Quality (AS 9001 or AS9100D), Safety (AS45001) and membership of the Defence Industry Security Program (DISP)”.
Securing a contract in Defence does take time, requiring a commitment of time, delivery of quality and a point of differentiation to others in the market.
When it comes to advising SME’s new to Defence, Les says that the best advice that could be given to a company is to look to work in with others as opposed to doing it on their own. Speak with others and where ever possible collaborate with those already working in the sector.
“A company should consider its strategy for entry into the Defence Sector, establishing why they want to enter, the product(s) they will offer and willingness to effectively collaborate with others.
However, we know that a number of companies have fallen at the first hurdle when it comes to engaging with Defence opportunities.
Les says that it is vital that the Industry behind the Australian Defence Force is committed to delivering excellence and is in it for the long term. Our service personnel must have the very best equipment to keep them safe and out of harms way. That means if a company is unsuccessful in an opportunity but has a great product or technology, keep trying. It is about being resilient.
He also says a final point for a company to remember is to do the necessary preparation from the outset, be innovative and form connections with others within Industry including Academia, Government and Research Institutes.
Industry engagement and networking helped Elexon to secure their first important project with EM Solutions (EMS) on delivering RF PCB assemblies for their marine Satcom terminals. EMS are also a Tier 1 supplier to the Australian Navy and major Defence contractors such as Raytheon and BAE for naval projects.
Currently, Elexon is for example tendering for manufacturing work with the Land 400 program and exploring opportunities for engineering collaboration in space programs applications.
CDIC grants to support Australian SMEs
A strategic advice Elexon has for companies new to defence is to contact Centre for Defence Industry Capability (CDIC). Last year, the Defence Industry Minister Melissa Price has announced $12.4 million worth of grants for small businesses that contribute to the development of Australia’s defence industry capability.
Grant recipients include manufacturing companies supporting land combat vehicles, businesses undertaking research and development on cutting-edge technologies and local businesses delivering the government’s naval shipbuilding plan. The Sovereign Industrial Capability Priority Grants are distributed by CDIC.
Elexon’s CEO Frank Faller strongly recommends to other SMEs to reach out to CDIC and apply for their Advisory and Facilitation Service. “CDIC gave us invaluable exposure to Defence industry and a chance to build connections with Defence prime contractors”, says Frank Faller.
Mark Ryan, CDIC Defence Business Advisor says: “Our job is to make it easier for the industry to work with Defence. We want Australian SMEs like Elexon Electronics to be able to access all the opportunities in the defence sector. We can help with your capability development, gap analysis defence marketing or networking.”
With help of CDIC Elexon is planning to focus on strategic development, defence marketing and cyber security program.
To become a valued Defence supplier it is essential to continuously become more agile, forward-thinking and rise above industry standards. By all means, Elexon stands ready to meet these challenges and work side by side with other like-minded companies in the Defence space.
Come and say hello at Land Forces 2021 – visit our booth AIDN2/Great Hall.
