Vanguard Magazine

Jun/Jul 2015

Preserving capacity, General Tom Lawson, Chief of the Defence Staff, Keys to Canadian SAR

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Page 39 of 47

T TEChnOlOgy WAtCH 40 JUNE/JULY 2015 The exporting value proposition h ow often do you hear Canadi- an defence companies say that you have to make it abroad before making it at home? It certainly seems that way for most of our national icons, even beyond the likes of Shania Twain and RIM. Successful Canadian companies thriving today in the defence sector have for the most part found success by focusing on global exports. In fact, the truly innova- tive companies that have survived in that complicated global marketplace make up the bulk of our defence industrial base. Did you know that Hepburn Engineering, a small business in Southern Ontario, is a world leader in replenishment-at-sea equip- ment? Over 50 years, they have conducted some of the most complex, high-tech under- takings required in modern navies. Or that OSI Maritime Systems, located on the West coast, has become a world leader in integrated navigation and tactical solutions? OSI enables warships to operate much more effectively in a complex bat- tlespace and offers truly unique capability for submarine navigation and water space management. We should celebrate and learn from these companies, understand why exports are so important for Canada, and figure out how to use the government's new Value Propo- sition to drive more. Much, much, more. "Exports are fundamental to OSIs fu- ture growth and expansion. However, it is critically important to ensure that our domestic customer, the Royal Canadian Navy, remains a stalwart supporter and user of OSIs technology," noted Jim Da- vison, OSI's business development leader. The company recently signed two deals with the RCN and secured the AOPS in- tegrated bridging system contract with Lockheed Martin Canada. There are no shortage of other case stud- ies. Edgewater Computer Systems, an Ot- tawa-based RDT&E company, engaged with the U.S. Department of Defense to successfully develop, integrate and test a key technology, referred to as Extended 1553, to support the rapid integration of data-centric capabilities such as ISR, video, imagery and enhanced vision sys- tems on the majority of today's airborne weapon systems. The success and importance of this technology led to its integration and testing on a number of Canadian plat- forms, followed by funding from DND for Airworthiness Certification and the eventual participation by Canada in its standardization through NATO STAN- AG 7221. "Our ability to export Edgewater's technical expertise...has led to the cre- ation of foreign funded, Canadian- owned intellectual property that is clearly recognized both domestically and internationally to have significant utility and value," said Greg Fielding, vice president for business development. CAE, IMP, Bombardier and many others also serve as examples of industry leaders who are in the midst of paving the way for increased Canadian defence exports. Ray Castelli, CEO of Weatherhaven, attributes the success of his company to its ability to sell shelter systems around the world. Having incorporated a stra- tegic plan to expand its global reach to ensure the company's growth, Weather- haven placed an emphasis on the need to focus on the "internal export market." According to Castelli, in doing so, they are "satisfying international demand but via an intelligent approach to the Indus- trial and Regional Benefits obligations of prime contractors already extant as a result of past contracts." Domestic firms such as Weatherhaven nicole Verkindt is the founder and president of OMX. She is a Board Member of the Canadian Commercial Corporation and was recently appointed to the Board of the Peter Munk School of Global Affairs. have collectively generated millions of dol- lars in revenues over the past decades, and continue to develop Canadian intellectual property and downstream economic ben- efits to Canada. Even Canadian operations of major multinationals, such as Lockheed Martin Canada, bring success to our shores with their exports, evidenced by the latest sale of their control management system to the Royal New Zealand Navy. This bilateral contract is a prime example of the long- term benefits that could possibly arise through designing a technology with Ca- nadian content, later to be marketed inter- nationally. Canadian companies get to go along for the ride and leverage major inter- national OEM sales channels. We all know how expensive marketing abroad can be, and finding success through an initial sale Edgewater PMC Cyclone.

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