Australian industry reaps $1 billion in F35 contracts

The Minister for Defence Industry, the Hon Christopher Pyne MP, has announced that Australian industry has been collectively awarded over $1 billion in production for the F-35 since the Howard government joined the programme in 2002.

Australian industry has been involved in the supply chain for the production of the F-35 fleet since 2006. By 2016 the Joint Strike Fighter program supported more than 2,400 jobs across Australia, and this figure is set to grow to 5,000 by 2023.

65% of the work is being carried out in Victoria, with 13% in New South Wales, 9% in both Queensland and South Australia, 3% in Western Australia and 1% in the ACT.

11 nations have confirmed orders to acquire the F-35 and over 265 aircraft are already operating in five allied air forces around the world. The eventual fleet will number more than 3,100 and provide a mainstay of allied air power for decades to come.

“More than 50 Australian companies directly shared in the production contracts to date, with many more indirectly benefiting through supply chain work,” Minister Pyne said.

“Australian industry continues to prove its global competitiveness by performing better than initial forecasts, with Australian industry involvement expected to exceed $2 billion by 2023.”

“The journey of Australian industry’s involvement in the global F-35 Program has been one of great success and long-term economic opportunity for Australia.

“It is attributable to the hard work and dedication of many Australian companies and their employees, along with their ability to innovate and drive costs down. This is a highly competitive, international project, and it’s a testament to the resilience and strength of our industry that we have been so successful.”

“Further opportunities are expected for Australian companies to increase production contract values over the next four years as F-35 production rates more than double.

“Australian industry is manufacturing parts that will be fitted to every F-35 aircraft in production across the globe.

“Australian success in the Joint Strike Fighter program isn’t limited to manufacturing parts. Australian industry has also been chosen as the maintenance hub for the engines, airframes and 64 of 65 components which have been assigned by the Joint Project Office.

“When I travel to the U.S. in April I will be arguing for more work for Australia, we have the capability and we deserve the work,” Minister Pyne said.

In a major milestone for the Australian F-35A Project, the first Australian-made Vertical Tail – produced by Victorian-based company Marand – was fitted to Australia’s third F-35A aircraft as it neared completion at Lockheed Martin’s production facility in Fort Worth, Texas, in August 2017.

Air Vice-Marshal Leigh Gordon, head of Australia’s F35 programme, notes that a range of Australian companies have also received US Government assignments as part of the F-35 Global Support Solution including F-35 air vehicle and engine depot maintenance, a range of component repair work and a
regional warehouse function.

Although these assignments are not yet contracts, they support the Australian Government’s goal to position Australia as the F-35 maintenance and support hub for the Asia-Pacific region, in line with the Australian Government’s broader vision for fostering a globally competitive, sustainable and innovative defence industry.

Gordon argues that “The F-35 Program is also about much more than just the delivery of a new fighter capability. Australian industry involvement in the program provides a platform for engagement with major international defence and aerospace companies and opportunities for participation in the development of new and emerging technologies.”

This engagement and participation should ensure that there is knowledge and skill transferral to Australian companies – building resilience and strengthening Australia’s economy.

The stealthy, advanced F-35A represents a significant improvement in air combat and attack capabilities and will give Australia an edge against regional powers such as China which are quickly ramping up the sophistication of their own armed forces.

The first two Australian F-35A aircraft are scheduled to arrive for permanent basing at RAAF Base Williamtown, New South Wales, in December.

By the time of Final Operating Capability, expected in December 2023, Australia will have a training squadron and three operational squadrons comprising 72 aircraft.