Aerospace & Defense Exporter Alert, Aug. 2024 v2

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Market of the Month, Austria

The Austrian aviation, defense and space sectors offer ample opportunities for U.S. companies. The preferred way of conducting international business is through industrial cooperations.

Defense

AUSTRIA DEFENSE PROCUREMENT OPPORTUNITIES
U.S. firms in the defense industry are of high renown, and well-regarded for their innovative technologies, and after-sale service and training, making them competitive for exports in Austria’s growing defense market.

Background: Neutrality has been the foundation of Austria’s security and defense policy for many decades. In view of the changed geopolitical circumstances, mainly the ongoing armed conflicts in the Ukraine in the Gaza Strip, Austria is forced to rethink its security and defense strategy. As part of that, investments of 4.02 billion Euros by the Austrian Armed Forces are planned in 2024, with the goal of an annual budget of 6 billion by the year 2027.

Opportunity: The Austrian Armed Forces require a substantial increase in quality and quantity of land and air equipment and in the information environment. Budget increases have been allocated for that, as a measure of the long-term military renewal plan titled ÖBH2032+.

Some intended purchases include:

• large investment allocations
• 10.3 million Euros for automotive vehicles
• 306.2 million Euros for armored vehicles
• 249.1 million Euros for weapons systems
• 195 million Euros for aviation (whereof 121,1 million for AW169 Leonardo helicopters and 35 million for the replacement of c-130 Hercules air transport system)
• increase of material expenses by 8.8%
• ammunition
• clothing and gear

Wheeled tanks, helicopters, aircraft, as well as antiaircraft missiles, drones and drone defense are listed among required military equipment.

Aviation

U.S. aviation companies can find great partners in the well-developed Austrian aviation industry. The following aspects in particular might be of interest:

1. Highly Innovative (25% of revenue invested in R&D) sector in Austria: open to international collaborations.
2. Market Access: Austria’s central location in Europe, offers strategic access to other European markets.
3. Skilled Workforce: well-trained local workforce in aviation industry, which represents great value when cooperating with local partners.
4. Growth Potential: Austria’s aviation sector is growing at accelerated rates, opening the market for new business and transactions.

Today, Austrian companies in the aviation sector generate around EUR 3,14 billion in turnover annually. 75% of the companies are small and medium-sized, however, 20 of the companies have an annual turnover of over EUR 10 million. These firms operate as suppliers to major aircraft manufacturers and space agencies, while also working on innovating in areas like small aircraft and unmanned helicopters.

Currently, Austrian Aviation is aiming at achieving its 2040+ Strategy goals, i.e. climate-friendly and future-oriented aviation, meaning that objectives will include technological change implementations and creating sustainable fuels for air transport.

Space

The entire spectrum of space technology is present in Austria: from components for satellites and space vehicles to ground equipment and specialized measuring instruments. The Federal Ministry for Transport, Innovation and Technology (BMVIT) invests around EUR 70 million annually to support the space sector.

Upcoming Events

• Airpower 24: September 6-7, 2024 in Styria, with an industry day on September 5 
  AIRPOWER24 6th – 7th Sept 24 – Die Flugshow in Zeltweg organisiert vom Österreichischen Bundesheer und Land Steiermark und Red Bull
   
• ESA Industry Space Days, September 18-19, 2024 in the Netherlands
  The Industry Space Days (ISD) connect SMEs, start-ups, and the broader space community for presentations, exploring business potential, exchanging ideas, and finding partners.
   
• AUSA 2024 | Oct 14 - 16 | Washington DC (defenseadvancement.com) Official Austrian delegation attending
   
• Aviation Forum Austria 2024 - open4aviation Oct 24, 2024 in Vienna

Contact Information

Andrea Wimpissinger, Commercial Specialist
International Trade Administration
U.S. Department of Commerce
U.S. Embassy Vienna
Cell: +43 676 968 5746; Email: andrea.wimpissinger@trade.gov

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On July 10, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published its Guidance to Industry on BIS Actions Identifying Transaction Parties of Diversion Risk (the Guidance) designed to help companies and universities identify parties that present a heightened risk of diversion of export-controlled items to restricted countries or entities. Most significantly, BIS recommends a new best practice that transaction parties be screened against the new Trade Integrity Project (TIP) website that monitors military and dual-use trade with Russia.  The Guidance also provides a general overview of the different actions BIS takes to inform the public about these parties, as well as the responsibilities that companies and universities must shoulder to comply with BIS regulations.

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We engage with events and trade shows to accelerate the global reach of the events.  Providing participants the assurance that the U.S. Department of Commerce not only recognizes the event but is also committed to using the event to maximize opportunities for U.S. exporters.

	Brazil Aero Medical  Business Development Mission September 25-27, 2024 This mission aims to introduce U.S. suppliers to the growing $3.1bn Brazilian aeromedical market by connecting U.S. companies to the public and private sectors responsible for bringing these life-saving equipment and solutions to Brazil. Firms participating in this event will be first-movers in this expanding industry and gain unique insights, make industry contacts, and develop strategies to increase U.S. exports and services to the Brazilian aeromedical sector. More information available here. Questions: Adam Shanks U.S. Department of Commerce, International Trade Administration, U.S. Commercial Service, Trade Mission
	AUSA 2024 Washington, D.C. October 14-16, 2024 Visit show web site here. Questions: Paul Matino U.S. Commercial Service, TEPP
	USA Pavilion at SITDRONE 2024 Washington, D.C. October 14-16, 2024 Join the U.S. Embassy Pavilion at Sitdone November 21-24, 2024! Sitdrone Defense and Security Trade Show is a prominent event organized by the U.S. Embassy in Lima. Scheduled to occur from November 21-24, 2024, at the Las Palmas Air Base of the Peruvian Air Force, this event holds national significance in Peru. It serves as a crucial platform for showcasing products and services to key decision-makers in Peru’s defense and security sectors Questions: Jennifer Sosa-Chacon  USA Pavilion Details [246KB]