Remy Nathan, a speaker at the marcus evans Aerospace & Defense Manufacturing Summit 2013, on how the changes to the U.S. Munitions List will impact the aerospace business. Interview with: Remy Nathan, Vice President of International Affairs, Aerospace Industries Association

1. Interview with: Remy Nathan, Vice
President of International Affairs,
Aerospace Industries Association
While the aerospace and defense
manufacturing industry should be
grateful for and take advantage of the
changes that are coming in the export
control system, what is ultimately
needed is a paradigm shift in how the
government and industry look at
defense exports, says Remy Nathan,
Vice President of International Affairs,
Aerospace Industries Association. “We
need to be developing more of a
collaborative and forward-planning
national defense export strategy,” he
recommends.
Nathan is a speaker at the marcus
evans Aerospace & Defense
Manufacturing Summit 2013, in Las
Vegas, Nevada, October 20-21.
How will the export control changes
impact the aerospace business?
The implications are significant. The
industry has long called for a more
predictable, efficient and transparent
system, as the system made it very
difficult for companies (particularly
small and medium sized companies) to
be in compliance.
The risks associated with non-
compliance, as well as the paperwork
and expenses involved, created friction
in almost every transaction at every
level of the supply chain.
The administration has realized that
there is a way to adequately control
technology appropriate to the risk
involved, without compromising on the
ability of companies to engage in
legitimate business that ultimately
supports national and economic
security.
The reforms will mean that the
technologies moving off the U.S.
Munitions List to the commerce control
list will potentially be eligible for fewer
licenses, if any at all. Companies may
be able to avoid the expenses of
transaction-by-transaction licensing.
The changes have a six-month
delayed implementation process,
coming into force on October 15.
How should manufacturers prepare?
Those who wanted to retain the status
quo claim that looking at the trade
surplus that the industry has managed
year-on-year is proof that the existing
system did not hurt business. That is
because we all invested a lot of time,
money and energy into navigating the
existing system.
Companies have to familiarize
themselves with the new system. As
difficult as the existing system has
been, the industry has got used to it, so
it will be a challenge to change, even if
it ultimately is going to be beneficial.
Are many companies considering
expanding their international
operations?
There is a lot more focus on the
international marketplace, with many
companies looking at expanding their
international operations to generate
more revenue.
They are also considering adjacencies,
looking at their technology offerings,
capabilities, skill sets and services, to
find applications not directly related to
the defense industry that they could
leverage. This could be in the areas of
cyber security, IT work, logistics,
maintenance repair and overhaul. These
are all ways that the industry is trying
to diversify to weather the impacts of a
downturn on the defense budget.
Any final thoughts?
What we ultimately need is a paradigm
shift on how the government and
industry look at defense exports. On the
government side, there needs to be
greater consultation and collaboration
with the industry, while on the industry
side recognition that international sales
are challenging and require time,
attention and resources, before there
are any significant returns.
Many
companies
are looking
at expanding
their
international
operations
to generate
more
revenue
How Reforms to the Export Controls
Will Impact the Aerospace Business

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About the Aerospace & Defense Manufacturing Summit 2013
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Nevada, October 20-21, 2013. Offering much more than any conference, exhibition
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leaders and solution providers to a highly focused and interactive networking event.
The Summit includes presentations on guaranteeing aerospace and defense
manufacturing excellence, maximizing supply chain agility, adding value to the
production process, determining the future of the space industry and diversifying in
austere spending environments.
www.aerospacedefensesummit.com
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