Exporters told to target the Pentagon

The Pentagon spends more than New Zealand's $2 billion annual defence budget every day, making it an irresistible export opportunity, says New Zealand Trade and Enterprise consultant Kathleen Moore.

Based in the New Zealand Embassy in Washington, she specialises in defence trade development.

Visiting New Zealand this month, she has spoken to more than 50 companies whose products could interest the United States Defence Department and the recently formed Homeland Security Department.

She also attended a defence industry seminar in Wellington "to get the word out about the opportunities that exist in the US market".

The Defence Department will spend nearly US$73 billion ($116 billion) on procurement next year and US$62 billion on research and development.

Homeland Security will spend US$105 billion next year.

For New Zealand companies to get "even a tiny percentage of that is well worth crossing the ocean for," Ms Moore said.

New Zealand companies produced many niche and innovative technologies for which defence capabilities had not always been considered. They included information technology, inflatable tents, photoluminescent lighting strips, aircraft capable of landing on almost any type of runway, test grenades and helmets.

"A lot of these companies do things that could fit into other areas, so they don't call themselves defence companies."

Ms Moore said New Zealand companies should not try to sell directly to the US defence departments, as they had complex organisational structures that were difficult to navigate.

Instead, they could look to supply companies in the US that already had a relationship with the departments.

New Zealand companies could also ride on the coat-tails of their Australian counterparts. Australia had a reciprocal trade agreement that made it easier for Australians to break into the market, Ms Moore said.

Using US agents and distributors was a low-risk and low-cost option to test the waters for a product.

Licensing a product could be useful for short-term entries to the market, she said.

Applying to have a product tested under the Foreign Comparative Testing Programme was also an option.

About half the applications were tested if it was considered a need existed for the product, Ms Moore said.

"There are so many opportunities, but it requires an investment in time and money. You have to be willing to stick it out."

- NZPA