Interview with: Remy Nathan, Vice
President of International Affairs,
Aerospace Industries Association
While the aerospace...
The marcus evans Summits
group delivers peer-to-peer
information on strategic matters,
p r o f e s s i o n a l t r e n d s...
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How Reforms to the Export Controls Will Impact the Aerospace Business - Remy Nathan, Aerospace Industries Association

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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


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How Reforms to the Export Controls Will Impact the Aerospace Business - Remy Nathan, Aerospace Industries Association

  1. 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
  2. 2. The marcus evans Summits group delivers peer-to-peer information on strategic matters, p r o f e s s i o n a l t r e n d s a n d breakthrough innovations. Please note that the Summit is a closed business event and the number of participants strictly limited. About the Aerospace & Defense Manufacturing Summit 2013 This unique forum will take place at the Red Rock Casino, Resort & Spa, Las Vegas, Nevada, October 20-21, 2013. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought 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 About marcus evans Summits marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-on-one business meetings. For more information, please visit: www.marcusevans.com To view the web version of this interview, please click here: www.aerospacedefensesummit.com/RemyNathan Contact Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division Tel: + 357 22 849 313 Email: press@marcusevanscy.com For more information please send an email to info@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.com

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