Table of contents
1.0. Executive summary............................................................................................................................3
2.0. Key economic and national security challenges facing the development of these major naval ship/submarine building projects………………………………………………………..3
2.0.1 Myriad operating cost……………………………………………………..3
2.0.2 Management and maintenance of potential workforce……………………4
2.0.3 Funding of the projects by the government………………………………..5
2.0.4 Seeking private sector support…………………………………………….5
3.0 Opportunities..........................................................................................................................................6
3.0.1 Job creation and infrastructure improvement………………………………6
3.0.2 Increasing South Australia’s GSP (gross state product) and improved overseas relationships………………………………………………………………………..6
4.0 Conclusion and recommendations……………………………………………………..6
5.0 References…………………………………………………………………………….8
Executive summary
As much as the Naval ship building and the termination of the long-term submarine construction is concerned, it is important to take into consideration the need of investigating the perspectives of the South Australian Defense Industry. Accordingly, it will be vital to take the opportunity of effectiveness of some of the newly implemented naval contracts of the South Australia as well as the impacts that they might induce. In addition to that, this essay will have to take into account the need of discussing the manner in which Defense Industry had managed to open various business opportunities to their government, multiple potential workers, as well as other perceived private sectors within the economy. As a result of that, some of the main challenges that the Defense Industry would faced from the time it was first established to sustain the naval ship building projects just within South Australia will also be discussed. Finally, such an analysis will be followed with a conclusion that will be aimed at determining whether the project was beneficial or viable to improving the wellbeing of the South Australia economy.
Key economic and national security challenges facing the development of these major naval ship/submarine building projects
Myriad operating cost
As much as these projects are concerned, there were various enablers that were projected to have the ability of it to succeed. Regardless of the various opportunities that was perceived to arise from such a project, it is evident the naval projects also encountered various challenges. The first challenge that made the projects not to progress is the multiple expenses that the management authority had to encounter. This implies that the entire infrastructure had to be modernized, be innovative, as well as remain sustainable (Naval Today, 2019 p.1). Material acquisition, transportation, payment of associated equipment, and payment of the employees’ salaries were the main expenses that had to be met. Likewise, it was important for the management authority to ensure that they have managed to cuter for the expenses incurred during the maintenance of the shipyards during its construction (Pwc, 2017 p.3). Because of the existence of insufficient funds, the projects can end failing in the long-run.
Management and maintenance of potential workforce
The next challenge that the naval ship building industry encountered was the continued management and maintenance of their potential employees. As the project was coming to completion, it was evident that the number of employees available continued to decline considerably. As a result of that there was a continued demand for workers to assist in enabling the day-to-day operating activities of the upcoming naval ship building projects. As a result of that, what this meant is the fact that the demand for employees in the future will increase so as to sustain the naval ship building contracts (John, et al., 2015 p.11). Taking into account the information published by the Australian Department of Defense, the demand for sufficient of employees was to assist in managing various sustainable tasks, its supply chain activities, as well as other indirect or direct activities that will continue making the whole projects to run smoothly. In accordance with that, the effective control of those activities was also another issue that can make the project not to prosper or be completed within the stipulated time (Australian Government, Department of Defence, 2017 p.63). The same scenario was to take into account the need of ensuring that the projects have met construction standards.
Funding of the projects by the government
Ideally, it was found out the continued financing of the upcoming submarines was to cost the government billions of money. As a result of that, the government was compelled to ensure that it has looked for various sources that will aid funding such projects as well as assist in pushing the continued economic growth of the state. As one of the project enablers, the approach the government will have to use is the one that had the potential of solving such an issue. What this implies is the fact that the government was to be forced to seek extra funding and technological support from other potential countries. The same was to force the Australian community to come together in fostering the success of the project (Australian Government, Department of Defence, 2017 p.110).
Seeking private sector support
For the continuity of the naval ship building project, there was the need of seeking support from various servicing companies and manufacturing industries. The reason for that is because quality control is also one of the issues that necessitated the Australian government to collaborate with potential private sectors in meeting safety standards. Contracting problems with the overseas companies has the ability of impacting the entire project hence effecting partnership transparency (Slocombe, 2019 p.1). In addition to that, the entire naval ship building project will have to ensure that they have obtained support from private investors in terms of finances. The presence of limited international niche market and security challenge is also another factor that will make the project not to succeed
Opportunities
Job creation and infrastructure improvement
One of the opportunities that are project to arise from such a project is the creation of job as well as supporting existing workers. The creation of employment opportunities will have the potential of increasing the number of people employed hence solving the problem of unemployment. For instance, some of the people to be employed will assist in direct ship building as well as supporting other related South Australian ship building industries. Moreover, the program will have the potential of ensuring job security as well as fostering it sustainability for the upcoming generations (Naval Today, (2019 p.1)). Since the project will heavily depend on external resources, it means that manufacturing industries will also be aid in constructing and sustaining the naval ships. This will also take into account the need of improving infrastructure (Engineersaustralia.org.au, 2019 p.1).
Increasing South Australia’s GSP (gross state product) and improved overseas relationships
Regardless of the myriad expenses that the government of South Australia will have to encounter, the entire project will have the potential of improving its GSP. The importation and exportation of materials will also enable the SA government to develop better foreign relations. This will take into account the trading and occupational opportunities to be developed. Moreover, it is possible to share development and research expenses and improving innovative technologies to use. The exportation of the naval ships will also end up increasing the SA economy (Pwc, 2017 p.6).
Conclusion and recommendations
To sum up, once the naval ship building contracts have started, it is evident that they will bring various opportunities to South Australia. Despite that, although all that will be aimed at improving the economic wellbeing of SA, there are also various challenges to be faced. Job creation, development of better foreign ties, technological advancement, improving the GSP of SA, and supporting private sector industries are some of the opportunities that will arise. Unfortunately, increasing operating expenses, recruiting enough workers, payment of employees’ salaries, obtaining private sector support and the short-term and long-term funding of the projects are some of the challenges that will affect the project.
Because of those challenges, the SA government should ensure that it has obtained enough finances from other potential investors. It is also vital to ensure that they have understood the mechanism to be used in obtaining the required workforce. Moreover, it is important to ensure that effective strategies have been implemented to assist in training and maintaining skilled workers. Production and labor expenses need to be managed efficiently so as to ensure that ship construction standards have been met. In so doing, it will be able to foster the longevity of the naval ships if properly planned before launching it.
References
Australian Government, Department of Defence. (2017). Naval Shipbuilding Plan. Retrieved from: http://www.defence.gov.au/NavalShipbuilding/Docs/NavalShipbuildingPlan.pdf
Engineersaustralia.org.au. (2019). Naval Shipbuilding Plan promises improved infrastructure | Engineers Australia. [online] Available at: https://www.engineersaustralia.org.au/News/naval-shipbuilding-plan-promises-improved-infrastructure [Accessed 20 Aug. 2019].
John B., John, F. S., Mark V. A., Edward G. K., Joel B. P., James B., Irina D., Dan J., James G. K., Gordon T. L., Roger L., Robert M., David N., Giacomo P.P., Deborah P., Brian P., JERRY M. S., Shane t., and Obaid Y. (2015). Australia's Naval Shipbuilding Enterprise: Preparing for the 21st century. RAND Corporation
Naval Today. (2019). Australia: $535 million Osborne naval shipyard project makes progress. [online] Available at: https://navaltoday.com/2019/07/01/australia-535-million-osborne-naval-shipyard-project-makes-progress/ [Accessed 20 Aug. 2019].
Pwc.com.au. (2017). What we know about the economic benefits of naval shipbuilding for South Australia. Retrieved from: https://www.pwc.com.au/publications/pdf/defence-briefing-note-oct17.pdf
Slocombe, G. (2019). Is this the near future of Australian naval shipbuilding? | The Strategist. [online] The Strategist. Available at: https://www.aspistrategist.org.au/is-this-the-near-future-of-australian-naval-shipbuilding/ [Accessed 20 Aug. 2019].
