International Opportunities in the Aerospace and Defense Sector

International Opportunities in the
Aerospace and Defense Sector
Presented by
Mathew D. Woodlee
Senior International Trade Specialist
U.S. Commercial Service – Minnesota
www.export.gov/minnesota
Melissa Grosso
Senior International Trade Specialist
Global Aerospace & Defense Team Leader
U.S. Commercial Service – Connecticut
www.export.gov/connecticut
Why Export?
 Increased sales and profits
 Overcoming low growth in the domestic marketplace
 Minimizing the effect of seasonal sales fluctuations
 Exploiting technology and expertise in foreign markets
 Achieving economies of scale
 Grow your business
 Keep up with the competition
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96% of all customers reside outside the USA
Who’s Exporting…?
Small- and medium-sized enterprises!
• 97% of U.S. exporters are SME’s
• Represents 30% of total export value
• Most export to only 1 foreign market
• Most have fewer than 20 employees
U.S. Free Trade Agreements (FTAs)
FTAs reduce barriers to U.S. exports, and create a more stable and transparent
trading and investment environment, making it easier and cheaper for companies to
export their products and services.
U.S. FTA Partner Countries
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Australia
Bahrain
Chile
CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, & Nicaragua)
Colombia
Israel
Jordan
Morocco
NAFTA: Canada & Mexico
Oman
Panama
Peru
Singapore
South Korea
Basic Requirements for Exporting
• An exportable product or service
• A competitive advantage
• The finance to take it to the marketplace
• A commitment in making the export project work
Your International Team Must be:
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Flexible
Committed to travel
Work Independently
Good “Ambassadors”
Technologically Proficient
Culturally Sensitive
National Export Initiative
 More exports = more jobs
- Through the National Export Initiative (NEI), President Obama has
announced a goal of doubling exports within five years to support two
million job in America
 Government support
- To help achieve this goal, the
Export Initiative will provide
more funds, focus, and cabinetlevel coordination to grow U.S.
exports.
- This is the first time the United
States will have a governmentwide export-promotion strategy
with focused attention from the
president and his Cabinet
Federal Agencies and
the Trade Promotion Coordinating Committee
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Trade Promotion Coordinating Committee is taskforce of 20 agencies focused
on coordinating government-wide export promotion through 7 core agencies:
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U.S. Department of Commerce
U.S. Export – Import Bank
Overseas Private Investment Corporation
U.S. Trade & Development Agency
Small Business Administration
Department of State
Department of Agriculture
U.S. Commercial Service
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The U.S. Commercial Service provides U.S. companies unparalleled access to business opportunities around the world. 
As a U.S. Government agency, we have relationships with foreign government and business leaders in every key global market.
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Our trade professionals provide expertise across most major industry sectors, in all major and emerging markets 
We offer fee‐based services to U.S. companies to help them expand international sales of U.S. made products and services
U.S. Commercial Service –
Located in 120 cities in over 75 countries
Algeria
Algiers
Argentina
Buenos Aires
Australia
Melbourne
Sydney
Austria
Vienna
Belgium
Brussels
Brazil Belo Horizonte
Brasilia
Recife
Rio de Janeiro
Sao Paulo
Bulgaria
Sofia
Canada
Calgary
Montreal
Ottawa
Toronto
Vancouver
Chile
Santiago
China
Beijing
Chengdu
Guangzhou
Shanghai
Shenyang
Colombia
Bogota
Costa Rica
San Jose
Croatia
Zagreb
Czech Republic
Prague
Denmark
Copenhagen
Dominican Republic
Santo Domingo
Ecuador
Quito
Egypt
Alexandria
Cairo
El Salvador
San Salvador
Finland
Helsinki
France
Paris
Germany
Berlin
Dusseldorf
Frankfurt
Munich
Ghana
Accra
Greece
Athens
Guatemala
Guatemala City
Honduras
Tegucigalpa
Hong Kong
Hong Kong
Hungary
Budapest
India
Ahmedabad
Bangalore
Calcutta
Chennai
Hyderabad
Mumbai
New Delhi
Indonesia
Jakarta
Iraq
Baghdad
Ireland
Dublin
Israel
Jerusalem
Tel Aviv
Italy
Florence
Milan
Rome
Japan
Nagoya
Osaka‐Kobe
Sapporo
Tokyo
Jordan
Amman
Kazakhstan
Almaty
Kenya
Nairobi
Korea (South)
Seoul
Kuwait
Kuwait City
Lebanon
Beirut
Libya
Tripoli
Malaysia
Kuala Lumpur
Mexico
Guadalajara
Mexico City
Monterrey
Tijuana
Morocco
Casablanca
Netherlands
The Hague
New Zealand
Wellington
Nigeria
Lagos
Norway
Oslo
Pakistan
Islamabad
Karachi
Lahore
Panama
Panama City
Peru
Lima
Philippines
Manila
Poland
Warsaw
Portugal
Lisbon
Qatar
Doha
Romania
Bucharest
Russia
Moscow
St. Petersburg
Vladivostok
Saudi Arabia
Dhahran
Jeddah
Riyadh
Senegal
Dakar
Serbia & Montenegro
Belgrade
Singapore
Singapore
Slovak Republic
Bratislava
South Africa
Cape Town
Johannesburg
Spain
Madrid
Sweden
Stockholm
Switzerland
Bern
Taiwan
Kaohsiung
Taipei
Thailand
Bangkok
Turkey
Ankara
Istanbul
Izmir
Ukraine
Kiev
United Arab Emirates
Abu Dhabi
Dubai
United Kingdom
London
Uruguay
Montevideo
Venezuela
Caracas
Vietnam Hanoi
Ho Chi Minh City
How We Can Help
Whether you are looking to make your first export sale or expand to additional international markets, we have the expertise you need to identify and penetrate foreign markets.
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Trade Counseling
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Market Intelligence
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Business Matchmaking
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Due Diligence
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Trade Events
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In‐Country Promotion of Your Products or Services
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Commercial Diplomacy
Access
Export
Readiness
Identify Key
Markets
Determine
Sales
Potential
Overcome Challenges
Implement
Export Plan
Export Counseling
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Export Documentation & Regulations
Identifying Schedule B/HTS Numbers
Foreign Tariffs/Taxes
Identifying Foreign Markets
Finding Agents, Distributors, Reps, etc.
Trade Shows and Events
Finding International Buyers International Marketing Strategies
Export Finance Resources
 Export Finance Resources
 Vetting/Due Diligence on Foreign Parties
 Inco‐terms and How to Get Paid
 International Shipping & Logistics
 Certificates of Origin
 Leveraging Trade Agreements & Free Trade Zones
 Foreign Import Requirements
 Export Controls
Aerospace & Defense Sales Issues
 International Traffic in Arms Regulation (ITAR):
– Directorate of Defense Trade Controls, Department of State
pmddtc.state.gov
 Export Administration Regulations (EAR)
– Department of Commerce, Bureau of Industry & Security
www.bis.doc.gov
 Foreign Military Sales (FMS)
– Department of Defense, Defense Security Cooperation Agency
www.dcsa.osd.mil
Market Intelligence
 Country Commercial Guides - Leverage reports, prepared annually by U.S. Embassy staff, containing information on the business, economic and political environments in foreign countries
 Foreign Market Conditions
- Industry‐specific market research reports and analysis
- Country‐specific tariff, tax and regulatory information
 International Demand Forecasting
– Data mining and predictive analytics
– Target foreign markets with highest demand for your products
International Partner Search (IPS)
 You provide your marketing materials and background on your
company
 We utilize our network of international contacts to interview
potential partners and provide you with a list of pre-qualified
candidates.
 Save valuable time and money by working only with pre-qualified
international candidates that are interested in selling your
products and services.
 Obtain high-quality market information on the marketability and
sales potential for your products and services.
Gold Key Matching Service (GKS)
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Pre-screened appointment schedule
arranged for you before you travel overseas
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Customized market and industry briefings
with our local trade specialists at U.S.
Embassies and Consulates
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Timely and relevant market research
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Post-meeting debriefing with our trade
specialists and assistance in developing
appropriate follow-up strategies
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Help with travel, accommodations,
interpreter service, and clerical support,
etc.
International Company Profile (ICP)
Determine whether an overseas company or individual is a suitable partner:
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Management details
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Business activities
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Product/service lines
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Financial condition
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Credit-worthiness
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Trading experience
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Market coverage
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Business connections in the target country.
Single Company Promotion (SCP)
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This service provides support and official sponsorship in a specific
market under the auspices of the American Embassy or Consulate.
– Product launches
– Technical seminars
– Networking receptions
Held in a well recognized location, such
as a hotel or in some cases, the U.S.
Ambassador's residence.
A typical event might include a 3-hour
program with an introduction by a U.S.
Government official followed by detailed
company presentation and
question/answer session followed by a
networking session.
Trade Shows/Trade Missions
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International Trade Shows
– U.S. pavilions put you in the best international trade shows with
access to thousands of buyers.
– one-on-one meetings with potential buyers.
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International Buyer Program (IBP)
– U.S. Department of Commerce selects leading domestic trade shows
to promote through its global network of offices and contacts.
– U.S. Commercial Service staff in our Embassies and Consulates
abroad recruit and bring delegations of qualified buyers, prospective
representatives and distributors to domestic trade shows.
– U.S. Commercial Service staff then facilitates meetings between
buyers and exhibitors.
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International Trade Missions
– Opportunity to meet with distributors, government and industry
officials, prospective customers, and U.S. Embassy officials.
Commercial Diplomacy
Level the international playing field for your company
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Overcome trade obstacles to successfully enter international
markets.
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Access U.S. government trade advocacy for your foreign government
procurement bids.
- Visits to key foreign officials by high-ranking U.S. officials
- Direct support from U.S. officials stationed overseas
- Letters to foreign decision-makers
Global Aerospace and Defense Team
 Over 200 members worldwide
 Supporting over 21,000 clients in over 3,800 aerospace and
defense related organizations
 Nationally partnering with 5 official CS partners and
collaborating with 4 others
 Self funded activities
Sample of Team Activities
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Client Development, buyer, seller match making
External (private sector) industry training for team members
Topical Webinars
Trade Missions
Global Matchmaking Receptions
Show-Time: trade counseling by country at major trade shows
Large Networking Events
Customized value-added services for US Exporters
Market Research
Partnership Development
Export Controls Seminars
www.export.gov/industry/aerospace
Aerospace And Defense Markets To Be Covered
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Canada
China
France
Germany
India
Israel
Singapore
South Korea
Turkey
Canada
Key Facts about Canada’s Aerospace Industry General Overview
•In 2011, it generated approximately $22 billion
•14 largest aerospace companies generate 51% of jobs and account for 65% of payroll
•Key clusters are Montreal, Quebec (approx. 55% of the Canadian market) and Ontario (approx. 18%)
Civil Aircraft Sector
•83% of output is from civil aircraft manufacturing; military is 17%
•In the U.S., military is 56% of output, civil is 44% output
International Trade
•Over 82% of production is exported •Over 50% of production is sold to the U.S. The Canadian aerospace market is uniquely well positioned for capturing a significant portion of the next generation aircraft’s production
Canada is Home to Leading Aerospace Players
Canadian American European
Composition of the Canadian Aerospace Market
Source: http://www.aiac.ca/canadas‐aerospace‐industry/industry‐statistics/
Canada’s Aerospace Sub‐Sectors Aircraft and Aircraft Parts
MRO
Engine and Engine Parts
Avionics and Electrical Systems
Space
CAE
Esterline
CMC Electronics
MDA Corporation
Pratt & Whitney Canada
Mechtronix
Air Data
ABB Bomen
Turbomeca
Systems Canada
Lockheed Martin Canada
Bombardier
Innotech Execaire
Rolls Royce Canada
Bell Helicopter Textron
StandardAero
Eurocopter
Simulations and Training
Trends on Canadian Aerospace Market
Emerging Markets
• Demand for civil aircraft that cannot be met by domestic manufacturers ‐ Chinese nationals alone are reportedly looking to purchase 200 business aircrafts
• Higher demand for single aisle aircraft with less than 200 seat capacity ‐ Canadian aerospace manufacturers’ core competency
Green Technology
MRO Centers
•Green Aviation Research and Development Network (GARDN) • Canada has several established MRO hubs in provinces like Manitoba and Quebec
• Most airlines state that they have underinvested in MRO activity – positioning Canada as a leading global MRO hub
• Canada has a vast engine MRO capability, ranging from small turbo shafts and turbo tops to large turbo fan engines
• Thriving composites industry
•Major Canadian aerospace manufacturers expect their aircraft nitrous oxide emissions and noise levels to be reduced by 80% and 50% respectively Canada and US Defense Procurement
Canada First Defense Strategy
U.S. companies can bid on Canadian government projects (www.merx.com)
The Canadian ITAR
Exemption http://www.law.cornell.edu/cfr/text/22/126.5
Defense Production & Development Sharing Agreement A Few Resources
From the Canadian Government
 National:  Industry Canada – Aerospace and Defense (http://www.ig.gc.ca/eic/site/ad‐ad.nsf/eng/home)
 Invest in Canada – Aerospace (http://investincanada.gc.ca/eng/industry‐sectors/aerospace.aspx)  Canadian Space Agency (CSA) (http://www.asc-csa.gc.ca/eng/default.asp)
 Provincial:
 Quebec: Investissement Québec ‐ Aerospace (http://www.investquebec.com/en/index.aspx?rubrique=23)  Ontario: Invest in Ontario (http://www.sse.gov.on.ca/medt/investinontario/en/Pages/OS_aerospace.aspx) A Few Resources
From Aerospace Associations and Media in Canada
 Associations
 Aerospace Industries Association of Canada (www.aiac.ca)
 Canadian Business Aviation Association (http://www.cbaa.ca/)
 Quebec Aerospace Association (www.aqa.ca)
 Ontario Aerospace Council (www.ontaero.org)
 Aéro Montréal – Montréal’s Aerospace Cluster (http://www.aeromontreal.ca/homepage/)  Media
 Wings Canada (www.wingsmagazine.ca)
 Plein Vol (www.pleinvol.com)
Upcoming Events in Canada
International Conference on Composite Materials (ICCM 19)
July 28 - August 2, 2013 in Montréal, Canada
http://www.iccm19.org/index.htm
Aéro Montréal Aerospace innovation Forum 2013
December 2 – 4, 2013 in Montréal, Canada
http://www.aeromontreal.ca/forum2011-en/
Gina Bento
U.S. Commercial Service Montreal
[email protected]
China
Chinese Aviation
Manufacturing
Org Chart
Chinese Aviation
Manufacturing
Org Chart
US manufacturers will supply COMAC
Drivers of Aviation Growth
Policy Support
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Significantly improve ATC
technologies to expand
capacity and increase
efficiency.
Low Altitude Airspace
Reform accelerating growth
of General Aviation
Political Support for
COMAC C919
Case Study: Airports
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Planned addition of 55+
airports in the next 5 years
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100+ to be expanded, 14
relocated, 70 new and 28
planned
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Focus on second- and thirdtier cities
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Probable expansion of
regional carrier capabilities
Bottlenecks Threaten
Growth
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Infrastructure
Human Resources
Airspace Constraints
Weak Policy & Regulatory
Environment
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1/3 of all traffic is
concentrated in top three
airports
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2/3 concentrated in top 14
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Lack of adequate GA/FBO
infrastructure
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Too few pilots and engineers
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Insufficient regulatory
manpower & lack of
experience
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Unclear laws guiding
development of GA
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Military dominates control of
airspace
Opportunities Exist
Airport Infrastructure
Parts / MRO
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Design & Engineering
Baggage System Design
Heavy Equipment
Avionics
Metals & Composites
Aftermarket Parts
MRO
General Aviation
Pilot & Engineer Training
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FBO Development
PPL Training
Customized Applications
FBO Development
PPL Training
Customized Applications
Is Your Company China Ready?
Export Experience
Senior Level Commitment
Financial Resources
Due Diligence
Take a “China Ready” Assessment Survey :
www.export.gov/china
Regulatory Issues
IP Strategy
Aviation Cooperation Program
 Public Private Partnership chaired by FAA
and Boeing
 50+ US corporate members
 Technical programs with Chinese
counterparts
 Workshops sponsored by committees
– Leadership & Professional Development
– Manufacturing & Airworthiness
– Airspace & Environment
– Airports
– General and Regional Aviation
– Airline Economic Regulatory Group
 Stronger relationships and increased sales
Upcoming Aerospace Events in China
China Civil Aviation Development Forum
May16-17, 2013
Venue: China World Trade Center, Beijing
Organizer: Civil Aviation Authority of China (CAAC)
Website: http://www.ccadf.cn/ccadfEN/indexen.htm
The only aviation event organized by the CAAC, China’s largest business & policy event focused
exclusively on commercial aviation
MRO Expo China 2013
October 16-18, 2013
Venue: Xiamen International Conference & Exhibition Center
Organizer: China Aviation Publishing & Media Co., Ltd. (CAPMC)
Website: http://www.aviationmrochina.com/
Aims to strengthen international communication and cooperation and serves as a high-level platform
for businesses and clients to share their achievements in aviation maintenance.
Air Show China 2014
Date: Nov. 11-16, 2012
Website: http://www.airshow.com.cn/en/
China International Aviation & Aerospace Exhibition (Airshow China or Zhuhai Airshow) is the only
international aerospace trade show in China endorsed by the Chinese central government. It
features the display of real-size products, trade talks, technological exchange and flying display.
US CS China Contacts
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Beijing
Shanghai
Shenyang
Guangzhou
Chengdu
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Turkey
Total air travel increased 200% between 20012010
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Turkish Airlines or THY is the largest player in the market with 7 subsidiaries
including lower cost airlines, MRO, cargo, fuel storage and refueling services
and ground services.
Turks are frequent flyers and the number of airlines has doubled in the last 10
years.
61 air taxi operation companies as of 2009;
Regional Airlines will ensure further growth. Turkish Airlines, Anadolu Jet,
Pegasus and Bora Jet emphasize the growth of the regional airline market;
With a fleet of 181 aircraft, Turkish Airlines has an established growth rate of
11% per year. Passenger load for 2011 reached 32.6 million. By the end of
2011, the number of flight destinations reached 189 (149 international and 40
domestic) from 104 in 2003;
Turkish Airlines flies to the most destinations nonstop from a single airport,
than any other European or Middle Eastern airline (the hub being Istanbul).
Maintenance, Repair, Overhaul
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Turkey is aiming to be an MRO hub catering to markets in Middle-East, N. Africa, Balkans
and Caucasus. Competitive prices compared to other MRO hubs in region (Germany,
France, U.K., Singapore). There are 55 countries within a 3-hour flying radius of Istanbul;
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Turkish Technic or Turk Teknik is the leading aircraft maintenance, repair and overhaul
(MRO) services company in the region with over 3,000 employees, based in Istanbul’s
Ataturk Airport. Services include airframe heavy maintenance, engine and APU overhaul,
LDG (landing gear) overhaul. Turkish Technic back shops are certified for over 4,000
Boeing and 4,000 Airbus aircraft components.
Key Investments
» Pratt & Whitney-Turkish Technic investment for MRO center $150
million joint venture;
» Goodrich-Turkish Technic, landing systems MRO hub for $5 million
expected to reach $20 million investment over next five years;
» Turkish Technic’s HABOM project will create a major MRO center in
Sabiha Gokcen Airport. HABOM is estimated to generate $1 billion
share of MRO market by 2020.
Airports: Key Projects
Cukurova Airport
Location: Near
Mersin, southern
Turkey
Model: Turnkey
BOT Airport
Construction
Third Istanbul
Airport
Location:
Istanbul
Model: Likely
BOT Turnkey
Ordu-Giresun
Airport
Location: Northern
Turkey, in between
Ordu and Giresun
Model: Turnkey
BOT Airport
Construction
Various Runway,
Taxiway and Apron
Construction
Projects
Location:
Countrywide
Model: DHMI
Tender
Satellite Opportunities
Year
Satellite Name
Comments
2012
Gokturk II
Electro optical reconnaissance and observation
2013
Gokturk I
Electro optical reconnaissance and observation
2013
Turksat 4A
Communications
2014
Turksat 4B
Communications
2015
Turksat 4R
Communications
2015
Gokturk III
Synthetic aperture radar (SAR)
2016
Turksat 5A
Communications
2016
BKZS‐I
Infrared early warning satellite
2016
SBIRS
Infrared early warning satellite
2017
Turksat 5B
Communications
2017
BKZS‐2
Infrared early warning satellite
2018
Gokturk IV
Electro optical reconnaissance and observation
2018
BKZS‐3
Infrared early warning satellite
2018
BKZS‐4
Infrared early warning satellite
2019
BKZS‐5
Infrared early warning satellite
2019
BKZS‐6
Infrared early warning satellite
2020
Gokturk V
Synthetic aperture radar (SAR)
•A total of 17 satellite
programs are expected
to come into orbit from
2012 to 2020. Over the
next five years satellite
contracts will amount to
$2 billion (projected).
•Turkey is setting up a
Space Technologies
Directorate under the
supervision of the
Transportation Ministry.
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Turkey’s Best Prospects
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Aircraft, aircraft parts
MRO services (maintenance, repair
and overhaul –
including airframe/component
maintenance, routable
logistics and/or fleet management
options)
Pilot Training, equipment & software
Radar and flight control personnel
training
Airport ground support and ancillary
(support) systems
(integrated computer systems for air
traffic control,
engineering and operations)
ILS Systems/automated landing
systems
Navigation aids
Airport Security Systems
Competition: The Usual Suspects
Best Prospect Sector
Aircraft
Aircraft Parts
X‐Ray Technology / Airport Security Systems, Mechanical Systems
Satellites
Civil Aviation, Air Traffic
Control
Companies and/or Countries
Events in Turkey and Contact Information
IDEF 2013
Istanbul, Turkey
May 7-10, 2013
http://www.idef13.com/en/index.php
Regional event covering defense and aviation
Ozge Cirika
U.S. Commercial Service Ankara
[email protected]
+90-312-457-7169
Commercial Service KOREA
South Korea: 60 Years of Shared Prosperity
 In 2013 the U.S. celebrates its 60 year-old alliance with
Korea.
 It is a partnership of shared prosperity based on a
Commitment to Security on the Korean Peninsula
 March 15th, 2013 we celebrate the one year anniversary
of the Korea-U.S Free Trade Agreement known as
KORUS.
 Our total bilateral trade increased to $125 billion in 2012.
 Korea continues to be our 7th largest trading partner.
The Korea-U.S. Free Trade Agreement (KORUS-FTA) is at it’s
one year anniversary as of March 15, 2013
Summary of the Defense Industry on the
Peninsula
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South Korea has the 6th largest military in the world and is a major
defense/security ally to the U.S.
– North Korea has the 5th largest military in the world.
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$8.5 billion budget for imports accounting for approx. $1.8 billion (2010).
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U.S. has the highest share with 70% of the import market followed by
Israel, U.K., and Germany.
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Massive defense reforms are underway to transition to a smaller but more
capable force structure.
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More advanced fighters, surveillance aircraft, naval platforms, and ground
combat vehicles are sought
The Republic of Korea’s defense industry budget
has been continuously increasing
Source: Business Monitor International, Q1 2013, www.businessmontior.com. South Korea: Defence & Security Report. ISSN 1749-1665
Industry Trends and Developments
Key objectives of the Ministry of National Defense
(MND)
Optimize indigenous production,
Diversify suppliers
Bolster air and space power; and
Procure sophisticated technology in the continual process
of modernizing and advancing the Korean defense sector
and its exports.
Source: Business Monitor International, Q1 2013, www.businessmontior.com. South Korea: Defence & Security Report. ISSN 1749-1665, p. 59
Key Players in South Korea’s Defense
Sector
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Daewoo Heavy Industries and Machinery
DSME
Hanjin Heavy Industries
Hyundai Heavy Industries
Korea Aerospace Industries
LG Innotek
Royal Thales Nederland
Samgong Industries
Samsung Techwin
Samsung Thales
Ssangyong Heavy Industries
Source: Business Monitor International, Q1 2013, www.businessmontior.com. South Korea: Defence &
Security Report. ISSN 1749-1665, p. 63
INFORMATION ON RELATED ORGANIZATION
DAPA Defense Acquisition Program Administration
http://www.dapa.go.kr/eng
MND Ministry of National Defense
http://www.mnd.go.kr/eng
ADD Agency for Defense Development
http://www.add.re.kr/eng
JUSMAG Joint United States Military Advisory Group
PPS Public Procurement Service www.pps.go.kr/english/
U.S. Commercial Service KOREA
Some Additional Resources
Korea Aerospace Institutes (KAI)
Korea Aerospace University (KAU)
Korea’s Country Commercial Guide
Korea Economic Research Institute
Korea Statistics
Seoul Air Show
http://www.kari.re.kr/
www.wkau.ac.kr/ftc
http://export.gov/southkorea/
www.keri.org
http://www.kostat.go.kr/eng/
www.seoulairshow.com/
Sunny Park
Commercial Specialist, US Embassy Seoul
[email protected]
82‐2‐397‐4164
JOIN THE
U.S.A. PAVILION AT
SEOUL’s AIR SHOW
Seoul ADEX 2013
October 29 – November 3, 2013
KINTEX and Cheongju International Airport
Seoul ADEX 2011 included:
•Over 314 companies from 31 countries
•20,720sqm Stand Area/ 95,000sqm Outdoor Space
• 73 Aircraft, 46 Ground Equipment Static Display
• 81 Official Delegations from 52 Countries
• 100,915 Trade Visitors during Business Days
•Indoor Exhibitions
•Static Display Aircraft Demonstration / Acrobatic Flights
•Demo-Maneuver of Ground Equipment
•Conference & Seminars
Contact: Jason Sproule
Tel: (949) 660‐7105
[email protected]
U.S. EMBASSY SEOUL COMMERCIAL SERVICE 주한미국대사관 상무부
Singapore
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Singapore Government (GOS) adopts liberalized aviation policy and
encourages open-air policy
Aerospace is high value-added industry and prioritized for promotion
Annual output totaled US$7.25 billion
Industry forecasts to grow at 10% annually (projected growth is US$11.5
billion by 2018)
Aerospace Industry Profile
 Maintenance, Repair and Overhaul (MRO) dominates 90% of
industry output (US$7.25 billion)
 Most comprehensive MRO hub in Asia Pacific: 25% share of Asian
market & 6% share of global market
Aerospace Industry Profile
 World-class aerospace systems manufacturing:
engine components, landing gears, aircraft
structural components and avionics parts &
systems
 Diverse aviation-related services including
asset management, leasing & flight support
 Strong Government support in aerospace R&D
Best Prospects
Great opportunities for most sub-sectors, ranging from:
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Aircraft repair equipment for MRO
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High value-added aerospace components
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Complete sub-assemblies and aircraft systems
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Sub-components for aero-engines
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Avionics sub-assembly and systems
Prospective Buyers
 Major airlines like Singapore Airlines, SilkAir, Tiger Airways, Jetstar
Asia and SCOOT + 100 other airlines operating from Changi
Airport
 Principal MRO stations like Singapore Technologies Aerospace,
SIA Engineering Company, SASCO, P&W, GE & Rolls Royce
 RSAF (F-5, F-15, F-16, C-130, KC-135, Chinook, Apache, S-70B,
Gulfstream 550)
 Distribution/Trading outfits servicing the Asia Pacific market
Overview of Singapore’s Defense Industry
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Singapore Government (GOS) perceives defense as a necessary
investment for peace & stability and to protect vital interests
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Singapore Armed Forces consist: Army, Navy and Air Force
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Annual defense budget is capped at 6.0% GDP
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FY2013 Defense Budget: US$10.3 billion (S$12.34 billion): an increase of
4.3% over 2012
Best Prospects
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Great opportunities for most sub-sectors, ranging from:
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Integrated systems to enhance interoperability between the three
services
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High aerial trajectory object detection systems
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Unmanned Aerial Systems
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Stealth materials/components
Prospective Buyers
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Primary Users - Singapore Armed Forces
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Defense Science & Technology Agency – procurement & engineering
arm of MINDEF
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Procurement website – http://www.gebiz.gov.sg
Market Entry
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Supply based on Tender specifications by DSTA
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Competitive Pricing & Suitability of Equipment/Systems
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Sale channels: long term agents/distributors
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Financing strategies: L/C up to 120 days credit term
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Performance Bonds
Competition
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Singapore is a free market economy: any legitimate suppliers are
allowed to do business in Singapore
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Practically all nationality of defense related suppliers have some forms
of establishment in Singapore: own office or representative

Major players include: Raytheon, Boeing, Honeywell, GE, Lockheed
Martin, Thales, BAE Systems, Rafael, Soltam, and Pyser.
Singapore Air Show
February 10-14, 2014
Aerospace Executive Service Program
http://export.gov/california/irvine
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Market Briefing
Daily transportation to and from AESTM hotel and Singapore Air Show;
Pre-scheduled meetings with potential partners, distributors, and end users recruited by
the Commercial Service;
Access to Official U.S. Pavilion/BIO amenities, including meeting area and shared
business center when not in use for AsiaNow one-on-one appointments;
Individual kiosk space (4.0 m²) within the U.S. Pavilion for displaying company literature
and posters and conducting meetings (Floor Plan);
Meetings with Commercial Service aerospace and defense industry specialists from U.S.
Embassies and Consulates across Asia;
On site assistance from AESTM program coordinator.
NG Haw Cheng
Commercial Specialist
U.S. Commercial Service Singapore
Tel: +65-6476-9037
Email: [email protected]
URL: http://www.buyusa.gov/singapore
India
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Defense sector—imports 70% of armament needs
– World’s leading importer of weapons (since 2011)
– Russia ($20b) and Israel ($10b) are lead defense suppliers
– US provides $8b under FMS program
India MOD
– Department of Defense Production (DDP)
– Department of Defense Research & Development Organization
(DRDO)
– Department of Ex-Servicemen Welfare
– Finance Division
Defense Expenditures
US$42.6 billion defense expenditure by 2015!
Defense Opportunities
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Unmanned combat aerial vehicles (UCAVs)
Advanced electronic warfare systems
Combat systems
Rocket and missile systems
Fighter and trainer aircraft
Stealth frigates
Submarines
ICT
Factors to Consider
Opportunities
• DCS or FMS
• Training Institute/University
• Partner with private firm to manufacture for gov’t tenders
Obstacles
• Lack of professional acquisition workforce in MOD
• Lack of transparency
• Lack of infrastructure
• Shortage of skilled workforce to discharge offsets
• Long approval timeframe
Civil Aviation Opportunities
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Engineering, Procurement, Management
MRO
Training Institute/University
Lessor for large body, business jet, turbo prop, twin engine, single engine
aircraft
Airport operator
GA Operator, tier 2-3 cities
Trade Events and CS New Delhi Contact
DEFEXPO 2014
Pragati Maidan, New Delhi
February, 2014
http://www.defexpoindia.in
Indian Business Aviation Expo 2013
New Delhi
November 5-6, 2013
http://www.miuevents.com/ibae2013
MRO India 2013
Mumbai
November 7-9, 2013
http://www.mroindia.com
India Aviation 2014
Hyderabad
March 12-16, 2014
www.india-aviation.in
Jitender Jassal
Senior Commercial Specialist
[email protected]
+91 11 2347 2187
United Kingdom
 The UK aerospace industry is the largest in in Europe
and second to the U.S globally.
 2010 market value: $36 billion (est.)
 UK aerospace defense sector 2009 turnover: $18.5 b (£11.5 b)
 UK civil aerospace 2009 market : est. $17 b (£10.62 b).
 UK supply chain includes over 9,000 companies.
 The UK aerospace industry involved in major global programs
 UK aerospace industry has improved over the last year and has ridden
out the storm fairly well compared to many other sectors in the UK.
 70% of the revenues are from export markets
* Source: A|D|S
UK aerospace industry sales by customer 2009 (est.)
Missiles
5%
Space
4%
Aircraft Equipment
25%
Helicopters
4.6%
aircraft systems & frames
37%
Large Civil Aircra
8.7%
Defence Aircraft
21.2%
Regional Jets
2.5%
Other and Business Jets
0.4%
Aircraft Engines
23%
Aircraft Maintenance
6%
Snapshot: UK Aerospace Market
 Products in greatest demand in the UK include aircraft systems and frames, engines and equipment.
 The UK’s maintenance, repair, overhaul holds 17% market share of a $45 b per year global industry.*
 The UK MRO sector has an estimated turnover of $9.6bn – approximately 30% of aerospace turnover
 The UK has 8% of the global market share ($120 b globally) in the sector.  Over 450 MRO companies in the UK employing 30,000+
 UK growth in the MRO market expected to grow slower than global pace (1.9% estimated) *Source: ADS
Key UK Aerospace Capabilities
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Manufacture of wings
Leader in related composite applications
Engine manufacturers
Manufacturing of military products and subsystems
MRO
UAVs 
•
•
Main Competitors: Airbus (wings)
Rolls‐Royce (engines)
Market Capabilities
Major Trade Shows
Best Prospects for US Exports
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Aircraft systems
Frames
Engines
Equipment
•
•
Farnborough International Air Show
– July 14-20, 2014
– www.farnborough.com
DSEI
– September 10-13, 2013
– http://www.dsei.co.uk/
Helitech
– September 24-26, 2013
– http://www.helitechevents.com/
UK: Trade Associations
A|D|S Group www.adsgroup.org.uk
British Business and General Aviation Association (BBGA) www.bbga.aero
Civil Aviation Authority (CAA) www.caa.co.uk
Department for Business, Innovation and Skills (BIS) www.bis.gov.uk
Department for Transport (DfT) www.dft.gov.uk
]
Richard Stanbridge
Head of Industry Team
[email protected]
+44 (0)20 7894 0419
France
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France is the world’s fifth largest
industrialized economy
In 2009, France’s aerospace industry total turnover of 35.8 billion Euros (civil and air defense) in 2009. There is still no larger market in the world for US aerospace products than Western Europe as a whole
French firms are interested in procuring in the dollar zone.
European suppliers are both competitors and partners to US firms. Very strong industrial base : many of the equipment systems firms do business with both Boeing and Airbus
Major French Manufacturers
DAHER SOCATA (Daher Group) – light aircraft and business turboprops
http://www.daher.com/cms/aerospace
EADS ATR – regional turboprops
http://www.atraircraft.com/home.html
DASSAULT AVIATION (Falcon Jet) – biz jets and fighters
http://www.dassault‐aviation.com/en/falcon.html?L=1
EADS EUROCOPTER ‐ helicopters
http://www.eurocopter.com/site/en/ref/home.html
EADS AIRBUS – large aircraft
http://www.airbus.com/
GECI Aviation—light aircraft, formerly Reims Aviation
http://www.geciaviation.com/en/
France: Sourcing Options
Market Access
Value for Cost
Technical Expertise
Risk Management
France: Opportunities
 Civil Aviation vs. Defense
– 75% of French aerospace industry concentrated in civilian aircraft
 Development Programs
– ATR, Eurocopter, Dassault
 LEAP Engine
France: Trade Shows
 Aeromart Toulouse http://www.bciaerospace.com/toulouse/
– Dec 4‐6, 2012
– Aeromart consists of one on one buyer/seller meetings
 JEC Composites Show http://www.jeccomposites.com/
– March 2012 – JEC is Europe’s largest composites show
 Paris Air Show http://www.paris‐air‐show.com/
– June 2013
– The Paris Air Show is one of the world’s largest civil and defense aviation trade shows.
Ms. Cara Boulesteix
Trade Specialist, Aerospace&Defense
[email protected]
+33 (0)1 43 12 70 79
Germany: Market Overview
–
EUR 25.7 billion in revenues
–
93,700 direct employees, 850,000 indirect
employees throughout supply chain.
–
Interests of this major industrial sector are
promoted by German Aerospace Industries
Association (BDLI – http://www.bdli.de) with
190 member companies (like AIA in the U.S.
or GIFAS in France).
–
Some BDLI member companies are U.S.owned (e.g., Northrop Grumman LITEF).
–
Solid growth rates between 4.1% (2011);
4.7% (2010) and 12% (2008)
•
biggest revenue generator.
–
Defense and security grew by 4.6% to
EUR 6 billion, 25.4% market share.
–
German defense budget, EUR 31.5 billion,
1.4% increase over 2010.
Germany: Market Entry
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Access to major aircraft programs
– EADS/Airbus
• Target of sourcing 40% outside of Western Europe by 2020!
• EADS Airbus Global Sourcing Network (GSN) has been created to
promote globalization of EADS' sourcing footprint.
• Nov 2010, joint U.S. procurement office founded by EADS North
America and Airbus Americas (Herndon, Virginia).
• http://www.eads.com/eads/int/en/our-company/our-globalsourcing.html
Germany: Market Access
–
Airbus Sites in Germany
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Hamburg: headquarters, final assembly of A318, A319, A321; Centre of
Excellence - Fuselage and Cabin, cabin interiors for A320 family and
A380, A380 paint shop, A380 major component assembly hall.
–
Bremen: Centre of Excellence - Wing/Pylon, design and manufacturing
of high-lift systems for the wings for all Airbus a/c.
–
Stade: vertical tail planes for all Airbus a/c.
–
Buxtehude: Center of Excellence - Fuselage and Cabin, all electronic
communications and cabin management systems.
Germany: Market Entry
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Tier 1 suppliers
– Liebherr-Aerospace Lindenberg GmbH, Lindenberg
Air conditioning and hydraulic actuation systems
–
Diehl Aircabin GmbH, Laupheim, joint Diehl Thales company
Cabin and system elements
–
Premium AEROTEC GmbH, Augsburg (still part of EADS)
Aerostructures
Wants to become leading Tier I supplier for commercial and military
aircraft structures within the next few years.
Germany: Trade Associations
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German Aerospace Industries Association (BDLI) http://www.bdli.de
German Airport Technology & Equipment http://www.gate-online.org
HANSE AEROSPACE e.V. http://www.hanse-aerospace.net
ALROUND (Association of Aerospace-oriented SMEs in Germany)
http://www.alround.de
Germany: Major Trade Shows
AERO 2012
http://www.aero-expo.com
International trade fair for general aviation and ideal stepping stone to enter the
European market. The range of exhibits comprises business jets, single and twinengine aircraft, light aircraft (UL, VLA, LSA), motor gliders, kit planes, helicopters,
propulsion systems, components, avionics, and more.
ILA 2012
Berlin, September 11-16
http://www.ila-berlin.de/ila2012/home/index_e.cfm
Biennial trade fair and leading marketing platform for the aerospace industry in
Continental Europe. The segments are Commercial Air Transport, Space, Defense
and Security, International Suppliers Center (ISC), HeliCenter, Unmanned Aircraft
Systems, CareerCenter, Conferences.
Aircraft Interiors Expo 2013
Hamburg, April 9-11
http://www.aircraftinteriorsexpo.com
Moritz v. Holst
Commercial Specialist
[email protected]
+49 (89) 2888‐754
Brazil
Total aircraft imports (2012): US$4.7billion (21% increase)
Key Players
– Embraer
– Helibras
Large fleet of executive aircraft
3rd largest helicopter fleet
Market Trends and Market Entry
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OEM qualification process
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Local agent
– Local law firms
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Tier 1 and 2 suppliers
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Smaller jets
– Good for Embraer and US
suppliers to Embraer
Azul Trip Airlines: 12 Embraer
planes
Latam Airlines: additional 100
aircraft (Boeing and Airbus)
2014 World Cup and 2016
Olympics
– Executive aircraft and
helicopters
Offshore oil segment
– Helicopter opportunities
MRO (US$600million)
– 5-6% expansion
Trade Events and Associations
EXPO AERO BRASIL
São José dos Campos
July 11-14, 2013
http://www.expoaerobrasil.com.br/eab/
?lang=en
Showcase for products and services
ranging from the production of civil and
military aircraft to embedded software
for space systems.
LABACE – Business Aviation
Conference and Expo
São Paulo
August 14-16, 2013
http://abag.org.br/labace2013/
Labace is the largest business aviation
event held in the Southern
Hemisphere.
Associations
AIAB – Brazilian Association of
Aerospace Industries
http://www.aiab.org.br/english/
ABAG – Brazilian Association of
General Aviation
www.agab.org.br
CS Brazil Contacts
Commercial Aviation
Marina Konno
Commercial Specialist, CS Sao Paulo
[email protected]
+55-11-3250-5033
Defense
Daniele Andrews
Senior Commercial Specialist, CS Brasilia
[email protected]
+55 61 3312-7458
Airports
Genard Burity
Senior Commercial Specialist, CS Rio de Janeiro
[email protected]
+55 21 3823-2401
Israeli Aerospace Industry
Major Companies
• Strong, diverse industry dominated by three main players:
• IAI – Israeli Aerospace Industries (govt‐owned)
• Elbit Systems (public company)
• Rafael Advanced Defense Systems (govt‐owned)
• Many smaller companies. Useful online database of defense companies: en.sibat.mod.gov.il/Industries/Documents/HLS%
20Sales%20Directory.pdf Israel’s Aerospace Industry
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9-10% of sales reinvested in R&D
Small Domestic Market.
Focus on Exports (75-80% of total production)
Global Export Markets, strong focus on Latin America (Brazil) and Asia
(India, South Korea)
Penetration in overseas markets through partnerships, acquisitions and
subsidiaries.
Participation in major trade shows, e.g. Paris Air Show, Asian Aerospace,
FIDAE, DEFEXPO, Aero India, China Aviation, Eurosatory.
Two Sales Tracks
(1) FMS
– MOD purchases est. 90% of its military requirements from the USA
with U.S. funding.
– Procurements are channeled through MOD Procurement Mission in
NY.
– Israeli Prime Contractors; Procurement – 51% US content.
– Sale to MOD/IDF; delivery to MOD or to local industry for integration
into system to be delivered to MOD.
– Strong recommendation to engage local representative.
– No commission to sales representative Exports Controls no obstacle.
Only challenge is time to delivery.
– ODC Chief David B. Spencer, Ltd. Col. USAF,
[email protected]; phone: +972-54-2228738
Two Sales Tracks:
(2) Direct Sales to Israel Industry
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High probability of re-export.
Main Challenge is Export Controls, in particular ITAR.
End-User Declaration; need to disclose export destination.
Time to Delivery.
Need for Intricate Internal Tracking System.
Increasingly, looking for alternative sources not requiring licensing, e.g.
South Korea, Taiwan.
US Commercial Service Tel Aviv
Irit van der Veur
[email protected]
Market Entry Strategies
A few things to keep in mind…
 Importance of a local partner
 Seek partners/reps in more than one region
 Sensitivity to local business culture
 Leverage the knowledge and network of the U.S. Commercial Service
 Access the supply chain through systems integrators, in addition to contacting the OEMs
 Sign up with OEM supplier programs
For More In-Depth Aerospace Market Overviews…
U.S. Commercial Service 2013 Aerospace Resource Guide

Market Intelligence from 40 US Commercial
Service Aerospace Specialists worldwide

PDF version available at
http://export.gov/industry/aerospace/

Contact details of US Commercial Service
international aerospace/defense specialists
Your local US Commercial Service Specialist can be
located at:
www.export.gov/industry/aerospace
Or
http://export.gov/usoffices/index.asp
[email protected]
860-638-6955