Defence & Security Exporting:
Support for Small Businesses
Arfan Chaudhry
Head, 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
SPIRE - 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 goods
www.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
UKTI DSO Defence & Security Boundaries
PUBLIC SECURITY
DEFENCE
COMMERCIAL
SAFETY & SECURITY
Police, Fire
Transport
Agencies
(aviation, rail,
ports)
Olympics/
sporting &
other events
MOI
Paramilitary
Coastguard
Border Agencies
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
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
www.ukti.gov.uk/defencesecurity/supportforsmes.html
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
arfan.chaudhry@ukti.gsi.gov.uk
Welsh Government
Ian Jenkins
Business, Enterprise, Technology & Science (BETS)
03000 615887
Ian.jenkins@wales.gsi.gov.uk
MoD Defence Suppliers Service
UKTI Small Business Unit
Howard Gibbs
020 7215 8204
howard.gibbs@ukti.gsi.gov.uk
Phil Margerison
030 679 32832
DESSRT-DSS@mod.uk
MoD Centre for Defence Enterprise
Jonathan Byrne
01235 438445
science-enterprise@mod.uk