LOCAL INDUSTRY PARTICIPATION-OPPORTUNITIES AND CHALLENGES

Abstract

The current high level of activity in the resources sector within Western Australia offers opportunities for local industry to participate in a wide range of major construction, manufacturing and service opportunities. At the same time, however, local industry has again been expressing concern about their involvement in these projects.

Challenges arise from the rapid technological change occurring within the petroleum industry, the availability of skilled labour, the increasing size and complexity of tender packages and the move to modularisation, the availability of the necessary industrial infrastructure and changes in purchasing practices. On the other hand project developers remain dependent on local industry to assure through-life project support.

There is a need for the upgrading of infrastructure and the development of a fully integrated heavy engineering facility based in Western Australia. The Jervoise Bay/Henderson Industrial Estate has been identified as the most suitable base for such activity. The opportunity also exists for the establishment of an Indian Ocean based gas turbine overhaul and refurbishment facility.

The challenge for the petroleum industry is to foster Australian industry involvement. The opportunity is to thereby strengthen through life support for projects. For its part, Australian industry must be able to meet specification, quality, price and delivery criteria.

In today's procurement environment, addressing the challenges facing local industry participation and capitalising on the available opportunities requires the cooperation of the complete purchasing chain. Project proponents, however, still play a pre-eminent role in ensuring the necessary cooperation and the early involvement of local industry at all levels of that purchasing chain.