AUSTRALIAN+NEW ZEALAND DEFENCE DIRECTORY 2025 www.defence.directory THE NATION BUILD 24 THE IMPORTANT ROLE OF SOVEREIGN CAPABILITY IN DEFENCE INDUSTRY Following on from the Defence strategic review (DSR), which was released in April 2023, the Defence Industry Development Strategy (DIDS) was released on the 29th February 2024. We have also seen in 2024 the release of the National Defence Strategy (NDS), the Integrated Investment Program (IIP) and the Surface Fleet Review, so it has been a busy year! The DIDS establishes the framework and principles for Australia’s defence industry policy and directly supports the delivery of the Defence Strategic Review These policy settings deliver the initiatives required to develop Australia’s sovereign defence industrial base required to meet our national security requirements. These include: 1. Sovereign Defence Industrial Priorities 2. Reforms to procurement processes. 3. Growing and developing the workforce required to deliver defence industrial capability. 4. Uplifting the security posture of defence industry. 5. Our approach to innovation. 6. Changes to the way Defence engages with industry. Defence has stated that they will work with industry to implement the Defence Industry Development Strategy (DIDS) to deliver an innovative, resilient and competitive defence industrial base that creates a stronger, more secure Australia. The DSR strongly criticised the Defence Department’s Capability Acquisition and Sustainment Group, saying its approach to capability acquisition is not fit for purpose. It says Defence’s acquisition process is not suitable given Australia’s strategic circumstances and there’s a clear need for a more efficient process. The DIDS addresses this issue and has stated that it intends to initiate procurement reform by the end of 2024. This strategy also identifies seven Sovereign Defence Industrial Priorities (SDIPs) that defence industry needs to focus on in order to secure Australia’s sovereignty. The DIDS is a good start, however, there is a lot more work to do. Some of the SDIPS are very detailed, others less so. The details around Australian Industry Content (AIC) are also less clear. This is where industry associations can work with Defence to provide feedback and lobby for reform that will not only benefit its members, but also achieve the objectives of the DSR. The purpose of an industry association is to represent and serve the collective interests of companies and organizations within a specific industry. The Australian Defence Alliance (ADA) is a Not-for-Profit organisation, focused on enabling members do better business in Defence. We focus on advocacy, support, networking, information and training. When ADA speaks for our members, our voice is heard. With our unique access, we provide industry insights direct to the Primes, Defence and government officials and their Ministers in Melbourne and Canberra (often one-on-one) sharing their insights with our members. We run regular, focussed industry briefings on specific projects and topics and publish regular e-News updates. The market demand is massive, and therefore so is the need for Australian companies to understand the opportunities, and what it takes to exploit them. ADA enables SMEs by providing regular industry updates including Federal and State grant and loan information which helps SMEs achieve that. And our advocacy on behalf of the SMEs is effective. We will continue to advocate for our members for a sovereign defence industrial base, more targeted and detailed sovereign industrial capabilities and reforms to defence procurement to support the development of Australian defence industry. We were brutally exposed the fragility of many global supply chains during the COVID pandemic, so defence industry policy increasingly emphasises sovereignty. ADA helps facilitate this through its messaging process targeted on Defence, the primes, potential export customers and State and Federal government, demonstrating that Australia’s technology-rich SMEs can do the job as reliably, competitively and at the same level of risk as their overseas competitors. Sovereignty also enables exports – you can’t sell what you don’t build. So, ADA works with the Defence Export Office and Defence’s Capability Acquisition and Sustainment Group (CASG) to help its members identify and pursue international opportunities. Cash and time-poor SMEs haven’t got the resources to do all this: to travel domestically and internationally, gather project intelligence, identify potential customers and industry partners and then understand whom to pitch to. ADA helps bridge that gap as well as advising on things like exports and security clearances, accreditations and regulations and even on preparing tenders. We can do all this because we’ve accumulated the in-depth defence market knowledge. So, from sharing the latest information on projects, events and policies to helping members build the right network of contacts within the eco-system, everything we do is focussed on supporting members to gain better access to opportunities. Want to start doing business in the Defence industry or with Defence? Join Australian Defence Alliance (ADA) and we’ll guide you through where and how to start doing better business in Defence! Sean Farrell CEO Australian Defence Alliance
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