The Australian Defence Force is relatively small in terms of the world defence market, as are the naval shipbuilding contracts mentioned above. Nevertheless some opportunities may arise to exploit the expertise gained in Australia to assist regional neighbours, for example with training.
Training and education
The light weight ship building sector recognised some time ago that it needed to train its workforce. Hence the industry is being serviced by apprentice training facilities.
The growing scale of specialist industry training represents a developing strength and post-secondary education offers specialist capabilities.
Shortage of key skilled trades persons is a problem as is the high cost to industry of training programs. One possibility is to seek opportunities for staff development in high profile overseas companies and institutions.
Marine tourism
This is a major growing industry sector in Australia and Western Australia although the industry is diverse and not clearly defined. The industry sectors should be reviewed to determine how it can be appropriately served in the future by government policy and infrastructure.
A coordinated plan and vision to meet the expectations of international visitors, protect the environment and create a sustainable marine tourism industry is needed.
Recreational and light commercial boatbuilding
The successful annual Perth Boat, Dive and Fishing Show organising by the national Boating Industry Association (BIA) helps unite the industry and provides strength and direction. The national BIA committee is currently working with Federal and State Government agencies to develop industry export capability.
The local market is remote from likely overseas competitors. In the immediate future this isolation will minimise foreign competition. However, competition could come from interstate and New Zealand and with the emergence of Australia's near neighbours as manufacturing countries. The low cost of labour in competing countries and lack of tariff barriers could pose a significant threat to the local industry in the future.
There will be market opportunities to expand boat sales overseas with the coordinated expansion of the industry taking place under the guidance of the national and state BIA's.
General shipping
Both the bulk and Roll-on Roll-off general cargo sectors of the domestic Australian shipping industry have captive markets for so long as they are protected from foreign flag competition by cabotage regulations and practices. Freight rates for domestic shipping services are based on 'cost plus' in contrast to international freight rates which are market driven. Australia's maritime safety regulatory regime is both a shipping industry asset and a deterrent against competition from sub-standard operators.
The captive markets that provide strength for Australian flag shipping may also be a weakness in terms both of constraint to development and of institutionalised inefficiencies. Australian flag ships fall short of international cost competitiveness by up to $2.0 million per vessel per year. If government support for Australian shipowners is withdrawn before micro-economic reforms take place, this could severely disadvantage the sector.
On the other hand, micro-economic reform (employment terms/second register) in the maritime sector may provide opportunities to participate significantly in Australia's international seaborne trade.
