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The expanding $200 billion Australian industry

25 July, 2018

The Government is investing $200 billion to modernise Australia’s defence capability. Australian businesses, large and small, will be essential to delivering these new capabilities.

With many areas of domestic manufacturing facing challenges from overseas competition, the defence industry is a growing opportunity where domestic talent and innovation can put you at an advantage. Benefiting from the increased defence spending is not just limited to established, big players. Read on to see how you can branch out and develop a new market.

Domestic Supply Chains

Most of the new opportunities for Australian companies will be in the domestic supply chains of major defence contractors. The Australian Government is committing to maximising Australian industry involvement in meeting our defence capability goals.

The potential for your company to win opportunities in the supply chain will be affected by:

  • the nature of your capability
  • value proposition
  • global competitiveness
  • risk profile (history of supply, capacity to deliver, supply chains, quality management).

The involvement of Australian industry in supply chains is encouraged through the Australian Industry Capability (AIC) Program. Under the AIC Program, prime contractors wishing to compete for Defence tenders over $20 million are required to identify Australian suppliers to meet the needs of Defence contracts.

The AIC Program aims to provide opportunities for Australian industry to build skills and capability, ensuring that local industry is available to continue supporting defence for the long-term.

Public AIC Plans describe future opportunities to become involved in Defence capability projects and sustainment activities. Public AIC Plans provide a specific point of contact in the prime contractor’s organisation to discuss business opportunities associated with that contract.

The CDIC is forming partnerships with large Defence projects to prepare and implement industry engagement strategies.

Defence Innovation and Research

Defence accepts innovation proposals all year round through its two key innovation programs: the Defence Innovation Hub and the Next Generation Technologies Fund.

These programs seek cutting-edge research ideas and technology innovations that meet the investment priorities that are published each year.  From time to time, Defence seeks specific technologies through its Special Notice program.

These two programs are accessed through the Defence Innovation Portal.

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