Developing and Sustaining a Sovereign Defence Manufacturing Capability

Australia must develop and sustain a sovereign defence manufacturing capability by investing in targeted industrial development in strategic priority areas. The Defence Industry Development Strategy outlines the need for a focused and integrated ADF to address contemporary challenges. Contemporary challenges, in this context, also refer to future challenges, something successive governments have failed to do. This shift requires the industrial base to become more focused, with the government supporting businesses to increase their scale and competitiveness to deliver Sovereign Defence Industrial Priorities (SDIPs). This includes providing grants to support Australian small and medium businesses, simplifying procurement processes, and supporting the development and retention of a skilled workforce?(Department of Defence, 2024). In other articles, I have made my position on defence spending very clear; we must increase defence spending to a minimum of 3% of GDP to achieve our strategic objectives.

Another critical component is enhancing the security posture of the industrial base. This involves mandating the use of critical Australian businesses in Defence projects where appropriate. By doing so, Australia can ensure that its defence manufacturing capabilities are resilient to external pressures and can continue operating effectively even during crises. The Defence Industrial Capability Plan emphasises the importance of having access to or control over the skills, technology, intellectual property, financial resources, and infrastructure that underpin these priorities?(Department of Defence, 2021).

Developing a sovereign defence manufacturing capability is, in itself, a significant challenge. Sustaining that capability over the long-term carries a whole raft of other challenges. Australia can sustain its sovereign defence manufacturing capability by fostering innovation and technological advancements at home. Initially, this might require incentives for manufacturers of established and successful weapons and weapons platforms to develop joint ventures with Australian businesses in Australia. The Defence Industrial Capability Plan identifies several priority areas, including munitions and small arms research, design, development, and manufacture. By investing in these areas, Australia can develop advanced technologies that enhance the ADF’s capabilities and provide a competitive edge in the global defence market. This strengthens national security and promotes economic growth and job creation within the defence sector?(Department of Defence, 2021).

Building a strong and resilient sovereign defence industrial base also requires a multi-pronged approach to reducing supply chain risk. This includes maintaining more significant stockpiles of critical resources and building a more robust sovereign defence industry underpinned by Australian primes. The government has accelerated initiatives such as the Sovereign Guided Weapons manufacturing program, which aims to create a sovereign capability to manufacture precision weapons that meet Australia’s growing needs and provide export opportunities as a second source of supply?(Department of Defence, 2021). This is a good start but does not go far enough. For example, we once had a successful military aircraft manufacturing capability in Australia, albeit during and after WWII.

Finally, Australia can develop and sustain its sovereign defence manufacturing capability by growing an internationally competitive industrial base through exports. By increasing the security posture of the industrial base and supporting the development and retention of a skilled workforce, Australia can enhance its credibility and reliability as a defence partner. This is particularly important in regional security dynamics and the need for collective defence arrangements. This final key strategy must be underpinned by applying realistic and practical government incentives and support to help Australian manufacturing industries adopt new technologies and replace the manufacturing capabilities we have lost over the past 50 years. The continuous shipbuilding program, for example, underscores Australia’s commitment to maintaining a capable and self-reliant naval force, which is crucial for regional stability and security?(Department of Defence, 2024). This level of commitment should be applauded, but the scale of the program and size of the manufacturing facilities do not lend themselves to constructing a range of warships that provide the RAN with the right mix of warships and support vessels.

References

Department of Defence. (2021, September). Fact Sheet: Sovereign Industrial Capability Priorities. Retrieved from Australian Government: Defence: https://www.defence.gov.au/sites/default/files/2021-09/Sovereign-Industrial-Capability-Priorities-Factsheet.pdf

Department of Defence. (2021, March 31). Joint Media Release. Retrieved from Australian Government: Defence: https://www.minister.defence.gov.au/media-releases/2021-03-31/morrison-government-accelerates-sovereign-guided-weapons-manufacturing-0

Department of Defence. (2024, February). Defence Industries Development Strategy. Retrieved from Australian Government: Defence: https://www.defence.gov.au/sites/default/files/2024-02/Factsheet1-strong-resilient-sovereign-defence-industrial-base.pdf

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