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Australia will compete for a larger slice of the foreign military export pie under the newly released Defence Industry Development Strategy.
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Minister for Defence Industry Pat Conroy officially launched the Defence Industry Development Strategy (DIDS) on 29 February, building on the 2023 Defence Strategic Review published in early 2023.
The new DIDS document outlines increased funding and establishes pathways to maximise support for Australia’s defence industry.
As part of the overall strategy, the federal government will attempt to diversify revenue sources through defence exports and broaden industrial capability and capacity to support Defence.
“Australian defence industry exports are important because they bring scale, competitiveness and sustainability to Australia’s industrial base,” the report said.
“[It’s important to] increase supply chain resilience by generating economies of scale for suppliers, which can create capacity in times of need and smooth the cycles of domestic acquisition and sustainment demand.
“[And] deliver a strategic effect for the Australian government, increasing interoperability and deepening ties with trusted partners. Strengthen Australia’s ability to shape and influence our strategic environment, and be a partner of choice to supply our regional neighbours with defence equipment, supporting their sovereignty.”
The report outlined that defence industry exports can occur through direct commercial sales, government-to-government or integrating Australian businesses into global supply chains.
In support of a greater export capability, Export Market Development Grants will be administered by Austrade to help Australian businesses grow their exports in international markets. Austrade business development managers will assist in identifying and capturing commercial development opportunities for the Australian defence industry in overseas markets.
Export Finance Australia will provide financial expertise and solutions to support Australian defence exports across a range of sectors, including advanced manufacturing, engineering and software. Defence Export Facility administered by Export Finance Australia will build Australia’s defence export capabilities. Australian Defence Export Catalogue administered by Defence will showcase defence industry products, services and technologies from businesses across Australia. Small Business Export Loan administered by Export Finance Australia will support streamlined approvals for businesses that need to borrow $20,000 to $350,000.
The Defence Strategic Review, released in early 2023, articulated a need to focus on developing the industrial base and providing targeted export support for businesses, which would strengthen international relationships, deliver innovative defence solutions, and maintain interoperability or capability edge.
The Australian government is also establishing a tripartite defence industry council that will be chaired by the Minister for Defence Industry. The council will provide an avenue for communication between representatives from the Australian government, industry and unions. The council will focus on ensuring a collaborative, whole-of-nation approach to developing the sovereign defence industrial base required to meet Defence needs.
