ICNL Executive Director Warren Jansen has welcomed the release of the Federal Government’s Defence Industry Development strategy, saying that Australian suppliers will have a greater opportunity to deliver on the needs of major Defence projects.
The strategy defines the rationale for a sovereign defence industrial base and sets out pathways for maximising support for Australian industry and its critical contribution to national security.
In 2022-23, Defence awarded more than $38 billion in contracts, with just over $8 billion going to SMEs. This was the largest value of any Commonwealth agency.
According to the strategy Australia’s SMEs face barriers to to entry into the Defence sector.
These include:
- increased security requirements
- limited publicly available information about Defence requirements
- long lead times before contract signature.
The strategy aims to support Australian businesses through the range of actions, including a simplified procurement process, support for developing and retaining a skilled workforce and mandating the use of critical Australian businesses in Defence projects.
It identified an improved approach to collecting as the first step, highlighting the behind-the-scenes work of ICN.
“Defence will draw on a range of information sources to build this data, including ICN,” Warren said, adding that the Australia-wide network had valuable data at its fingertips, thanks to the work of consultants across the country, as well as through Gateway, its powerful procurement and supply chain tool
“Our consultants across the country work with multiple sectors and the Australian Government in relation to the Buy Australia Plan and the National Reconstruction Fund as well as Defence, to support local industry.”
“Our aim is to ensure that supply chains are resilient and sustainable, so that we can grow and build sovereign capability aligned to the Defence Industry Development Strategy.
‘Subscribers to ICN Gateway receive alerts of newly listed projects and work packages and can take advantage of some of Gateway’s key features, such as automated Quad Charts and Capability Statements, both relevant to promoting sovereign capability.”
ICN, supported by the Commonwealth Government Department of Industry, ensures that local suppliers have full, fair and reasonable opportunity to access public and private projects. To date, ICN’s work has helped facilitate contracts for local suppliers valued at over $53B+, creating thousands of jobs and significantly expanding local industry participation.
In releasing the strategy, Minister for Defence Industry Pat Conroy said the sector supported more than 100,000 Australian jobs.
“I look forward to working with industry to implement the Defence Industry Development Strategy, and deliver an innovative, resilient and competitive Australian defence industrial base that creates a stronger, more secure Australia,” Minister Conroy said.
To find out more about how your business can take advantage of opportunities in the Defence sector, call 1300 961 139 or visit icn.org.au.
