There are concerns an $8 billion project to build a fleet of naval air-warfare destroyers could be delayed as a result of the skills crisis.
The AWD Alliance, the company building the fleet of three Hobart class destroyers, today announced the launch of a tender process for the construction of the vessels' hull blocks.
The hull work is worth hundreds of millions of dollars and is likely to be shared between a number of contractors.
There has already been interest shown from companies in NSW, South Australia, Victoria and Western Australia.
But there are concerns about the impact the skills crisis is having on defence industries, and the potential for a shortage of skilled workers to delay the AWD project.
Parliamentary secretary for defence Greg Combet has said defence sector industries were suffering as a result of a massive shortfall in skilled workers.
In the past financial year, companies providing defence equipment had sought almost 1,700 new employees, but managed to hire only about 650, he said.
"This is a significant challenge and one, it's fair to say, industry is currently failing to meet," Mr Combet told the National Press Club last week.
The AWD project currently employs 500 people but will require about another 1000 workers at its peak.
It's one of the biggest defence projects in Australia's history.
AWD Alliance chief executive John Gallacher said the skills crisis was a concern, but maintained he was confident the project would be completed on schedule and on budget.
"These projects are large, they're complex and we have many challenges in front of us," Mr Gallacher told reporters at briefing in Canberra today.
"We're actually on track right now, we've got about 500 people on the project.
"But anyone who looks at the challenge ahead, for us to build that up to about 1,500 or so, would look at that and say, that's quite a challenge. We're not taking it lightly."
The company, with funding assistance from the South Australian government, has also set up a maritime skills centre to help combat the shortage of workers.
"There is a skills shortage around the country, there is real competition for the right people," Mr Gallacher said.
"Undoubtedly, people will be attracted to the mining sector, we know that, and that will be, in that sense, a challenge for us.
"But the evidence shows that a big project like this, in this location, will bring lots of people in."
The destroyers, set to be the most advanced warships in the navy, are designed to be able to provide air defence for other ships, land forces and infrastructure in coastal areas.
The combat system and state-of-the-art radar array provide the vessels with an advanced air defence system capable of engaging enemy aircraft and missiles at ranges in excess of 150km.
The destroyers will also carry a helicopter for surveillance and response to support key warfare areas.
The surface warfare function will include long range anti-ship missiles and a naval gun capable of firing extended range munitions in support of land forces.
Construction of the first of the ships is expected to be complete by late 2014.
defence forces
