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An Australian defence manufacturing base that delivers world-leading capabilities for the Australian Defence Force (ADF) and is internationally competitive.

This stronger manufacturing base will be enabled by a larger number of medium-sized defence businesses that can secure long-term supplier relationships, contribute to and sustain Defence capability, and engage with small businesses.

Australian manufacturers are in a prime position to take advantage of the increased domestic and global investments in Defence capabilities. The numerous acquisition and sustainment opportunities that will come from these investments will support manufacturers to:

  • make up a greater share of the defence supply chain
  • enter new markets beyond the ADF
  • contribute to some of the world’s most advanced supply chains and export to allies or like-minded countries.

These opportunities will be for both the defence industry and adjacent sectors, such as mining, medical, space or law enforcement.

This future will be built on existing capabilities within Australian manufacturing, unprecedented investments in Defence capabilities by the Government, and investments in applying our internationally recognised R&D to create new goods and services. Leveraging these investments, deepening collaboration to grow industry capabilities and commercialising innovations will help manufacturers scale their operations and improve their competitiveness in the global market.

The co-investments by governments and industry made through the MMI, as well as the policy initiatives across different level of governments, will progressively grow the defence manufacturing sector as follows:

2 year vision

Manufacturers are investing more in addressing Defence priority capabilities and other market opportunities and have improved their linkages within the Defence ecosystem.

5 year vision

Greater advanced manufacturing capability and increased participation in defence supply chains by Australian businesses. Smaller manufacturers are scaling up, increasing the number of medium-sized defence manufacturing companies.  

10 year vision

More Australian businesses are contributing to local and international defence supply chains, while more Australian innovation and IP is contributing to products supplied to the ADF and other markets.

Funding available

The Modern Manufacturing Initiative is now open for defence manufacturing projects that meet eligibility under its Translation and Integration streams.

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