FOR those who haven’t visited the Henderson industrial area lately, the entry road from Fremantle sports two new billboards.
FOR those who haven’t visited the Henderson industrial area lately, the entry road from Fremantle sports two new billboards.
Highlighting the work that shipbuilder Austal does as high-tech manufacturer, the first billboard appeals to the public by pointing out that Western Australia does more than export natural resources.
The second is even more to the point. “Designed in WA to defend the world”, it states, focusing on Austal’s future growth in the military market rather than its past as a ferry builder.
That billboard might sit on the road but it is aimed squarely at Austal’s workforce, which travels past it each day, reminding them that they are working on something that is out of the ordinary in resources rich WA.
“I am not trying to make a political statement,” new Austal CEO Andrew Bellamy said. “It is the truth.
“There is a group of Western Australians out there who have designed the Littoral Combat Ship for the US Navy.
“Now I am not a boat designer but if I was, you know, what would you want on your CV? What would you want to go home and tell your gran?
“If you are going to do something you might as well be good at it.”
But Austal’s new leader may well be preaching to the converted as he espouses this infectious combination of technology and ships. Mr Bellamy admits there is more than enough energy and experience among the very loyal staff at Austal, which has stayed remarkably competitive in this fast-moving segment of the commercial marine world.
Appointed late last month as CEO after about two and half years with the shipbuilder as a senior executive, Mr Bellamy’s credentials seem more straightforward than the circuitous route he navigated to end up at the helm.
Mr Bellamy has been a sailor since he was seven, learning the skills in the cold climes of Yorkshire in England where he grew up.
Most of his professional life has been spent in the oil and gas industry, initially with ICI through which he earned his engineering and marketing qualifications, and then with Honeywell, working as far afield as the US, India and the Middle East.
He describes much of his work as complementary to his new position. In his past career he has overseen the development and construction of oil refineries, dealing with government and big corporate stakeholders as part of that experience.
A few years ago a natural break in his career trajectory offered him the chance for a sabbatical and, with kids largely grown up, he took the chance to indulge in his passion for the sea by taking his partner on a sailing trip that included a visit to Queensland.
Australia attracted him so much that he sought a job with his old employer ICI, having gone native enough to turn up to the interview in Sydney in shorts and thongs.
A change in ownership at ICI prompted Mr Bellamy to look further afield and a job as head of Austal’s global sales operation resulted in September 2008. He later became chief operating officer for the non-US business before taking up the vacancy created by former CEO Bob Browning, who quit unexpectedly last year.
“Someone pays me to talk about boats all day, what is wrong with that,” said Mr Bellamy, clearly revelling in the new position.
The business hasn’t been noticeably affected by that minor shockwave – the loss of a native American CEO just as the US Navy was set to decide on its future supplier of key shipping needs, high-speed combat ships and fast support vessels.
Within a few months of Mr Browning’s departure the US Navy ordered the first of 10 of the littoral combat ships in a deal worth $US432 million. Last week the navy ordered its second, a deal worth $US368 million.
Austal also has under construction for the US Navy a combat ship ordered prior to the recent 10-ship deal and two joint high-speed vessels.
“It is just what it said on the tin,” said Mr Bellamy, using a little Yorkshire saying to express his satisfaction that thus far things have panned out as the group expected.
While the US work will be done at Austal’s rapidly growing Alabama facility, Mr Bellamy sees the defence work as becoming an increasing part of Austal’s Australian portfolio because the company’s technological edge allows it to maintain its high-cost workforce as competition in its traditional fast ferry market becomes more intense.
As a relative newcomer, he admits he struggled to fathom the existence of remotely located Austal as an increasingly important supplier to the world’s most sophisticated military.
“We have proven we can transfer technology created here in our commercial business to the US,” Mr Bellamy said.
“The trick is how and where do we replicate that elsewhere?”
One initiative is the 103-metre stock vessel finished last year, which the group hopes will interest the military buyers including Royal Australian Navy.
“The best way to prove something is to build it,” Mr Bellamy said.
“No-one in the navy is going to write a blank cheque to say ‘go and build some ships and show me this stuff works’.”
