Aerospace Industry must Seize Global Opportunity |
Publication | Business Day |
Date | 2002-11-05 |
Reporter | Larry Claasen |
Web Link | www.bday.co.za |
SA's aerospace industry has a small window of opportunity to make the most of the country's arms deal to integrate itself into the global market, says Aerospace Maritime and Defence Industries Association director and former SA Air Force general John Wesley.
While the domestic aerospace industry was getting a lift from the industrial participation agreement flowing from the arms deal, it was not a guarantee for future support.
Wesley said last week that as armaments company Denel and procurement company Armscor were state-owned enterprises, they were virtually ensured to get work from the participation agreement. He cautioned that once they became private companies, work emanating from the agreement could decline.
The aerospace industry is also set to get a boost following Trade and Industry Minister Alec Erwin's announcement last week that it would get the same kind of government support that benefited the motor industry. Government is hoping to mirror the success of the Motor Industry Development Programme, which led to the domestic motor industry becoming a player on the world stage, in the aerospace sector.
While the larger players in the local industry were building a name in the global market, smaller players were struggling to get attention. It is not easy for small companies to integrate themselves in the international supply chain. This came from international players generally ignoring companies that did not have turnover of more than à 6m.
Wesley said the small companies were rising to the challenge, as they were now starting to work more closely with each other and larger players in the industry.
With acknowledgements to Larry Claasen and Business Day.