The Defence industry finds itself in an increasingly challenging predicament. In recent years, military spending globally has been under immense pressure, governments around the world haven’t started many significant new weapons programs, and few are on the horizon. Moreover, for the past decade departments and ministries of defence have shifted some of their attention to vendors that aren’t part of the core defence industry, particularly technology firms that leaders believe can deliver products within shorter time frames with more agility than legacy Defence companies. In this way, defence departments are broadening their procurement activities away from pure-play defence contractors.
Australian industry will play a major role in delivering the plans in the 2016 Defence White Paper. Initiatives in the Defence Industry Policy Statement will see the development of a technologically advanced, innovation‐driven and sustainable Australian defence industrial base, which is well placed to assist Defence in protecting Australia’s national interests.