"Today's release of the 2026 Defence Industry Development Strategy (DIDS) and Rebuilding Defence Capability marks a turning point in how Government supports defence industry," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
"The DIDS recognises that Australia's defence industry is a fundamental component of national capability, not simply a supplier to Defence. At a time of deteriorating geopolitical stability, the need to build our sovereign defence industrial base well ahead of a potential conflict cannot be ignored.
"Corresponding reforms to Australia's capability systems – via the establishment of the Defence Delivery Agency, consolidation of functions and redesigned institutional mechanisms systems – are equally if not more important. These promise to address the accountability and assurance deficiencies which have at times stymied efforts to deliver needed defence capabilities on time and budget.
"Strategy is only the first step. Defence capability is built through a sequence of strategy, structure, resourcing and execution. Today's announcements lay new markers for the former two, which should enable stronger results from the latter.
"Industry has long argued that Australia's strategic circumstances require a stronger and more resilient industrial base. The opportunity created by this Strategy will only be realised if strategic intent is matched by practical implementation.
"Both the DIDS and the capability reforms emphasise an important shift towards earlier and more meaningful engagement between Defence and industry. Better capability outcomes depend on Defence understanding what industry can deliver and industry having visibility of Defence's future requirements.
"Workforce remains one of the most significant constraints on industry growth, and the Strategy's focus on apprenticeships, internships and STEM pathways is a welcome response. Building and retaining the skilled workforce needed will remain a critical challenge for both government and industry.
"The next step must come via resourcing and delivery. Defence industry now needs clear resourcing allocations, which are matched to the capability requirements pathway of the ADF. This will provide the foundation for the types and levels of investment needed to deliver on the needs outlined in the Sovereign Defence Industrial Priorities.
"We acknowledge the significant contribution made by former Deputy Secretary Capability Acquisition and Sustainment Group Chris Deeble to Australia's defence capability and defence industrial base. Industry has valued his engagement over many years, and we thank him for his service.
"We welcome Nadine Williams as Interim National Armaments Director as she leads the capability reforms transition. Industry looks forward to working closely with Defence as these reforms are implemented.
"A strong sovereign defence industrial base is fundamental to Australia's preparedness, resilience and deterrence. Australian Industry Group looks forward to working with Government and Defence to ensure the DIDS and capability reforms deliver practical outcomes for both Defence and industry," Mr Willox said.
