Integration lab in Melbourne office of United States Air Force System under test.

At the Defence + Industry Conference 2006 Defence Minister, the Hon Dr Brendan Nelson announced a review of defence industry policy, emphasising the importance of ensuring that there is a place in the sun for small to medium enterprises (SME) and of examining export potential.

SME Redflex Communications has actively chased the sun establishing itself in the foreign defence market by setting up an office in Washington DC. Its niche is voice and data communications.

General Manager Peter Harrison said the interesting thing about Redflex Communications is that greater than 80 per cent of its business is in exports.

‘We branched into exports to survive. We established a base in Washington DC five years ago, and we have generated a lot of work in the United States (US) over that time, delivering our systems to the US Air Force, Army and Navy,’ he said.

‘Redflex Communications maintains a solid engineering core of about 40 staff with engineers averaging 10 years industry and engineering experience. Sophisticated processes underpin Redflex software, hardware and systems engineering,’ Mr Harrison said.

The Victorian based company, established in 1989, has participated in Australian Defence Force (ADF) work through primes since the early 1990s including supplying two ship-board voice and data communications systems for the Royal Australian Navy’s Landing Platform Amphibious Communication System; supplying voice communication systems for ANZAC frigate combat system simulators; and supply of the voice and data switching element for a tactical defence radar system for the Royal Australian Air Force through prime Tenix.

Part of their success on the international market came from a research and development grant won by the company through the Australian Department of Industry, Tourism and Resources.

‘We secured the grant about two years ago to look into the application of voice over internet protocol (VoIP) technologies to mission critical voice and data systems. Through this grant we have successfully comercialised our frame over internet protocol technology, combining the flexibility of VoIP with the dependability of traditional Time Division Multiplex based switching systems. The successful introduction of our third generation systems into the US Air Force and NATO reinforce the value we can bring to the ADF,’ Mr Harrison said.

‘Redflex work on the foreign market extends to the Middle East , Asia and Europe , with bid work undertaken on these continents. Prime defence companies have sub contracted much of our work, we have worked closely with many of them.

‘We have the ability to tailor our products, we have a skilled systems integration workforce and in developing our new technologies we have taken into consideration the potential need to integrate them into legacy platforms,’ Mr Harrison said.

Australia ’s defence industry consists of between 250 and 300 companies, the majority being small to medium enterprises (SME) with fewer than 200 employees.

About twelve defence primes operate in Australia and they account for at least sixty per cent of the ADF’s business. Australian SMEs tend to supply these primes and in turn the ADF with niche products and services.

Defence Minister, Dr Nelson said the defence industry policy review is about ensuring competition. Part of this is defining the role SMEs play in working with primes on ADF contracts.

‘The challenge, in defence industry, from my point of view, is how do we balance appropriately the enormous amount of power that is possessed by the Government and DMO with a different but still significant power that is invested in large primes with whom we deal, and the important role played by SMEs particularly in driving economic and social development in key parts of Australia,’ Dr Nelson said.

The Defence Industry Consultative Group running the Industry Policy Review has released a discussion paper and is currently seeking input from defence industry companies and other interested parties. Submissions can be made by filling out a response template and sending it to submissions@defenceindustrypolicyreview.com.au.