Soldier’s 5 - #3 - 2026 Defence Industry Development Strategy

Written By Paul Gibbs

Opportunity is knocking…. but is your business ready?

Pat Conroy, Minister for Defence Industry, touring Thales Bendigo factory - home of the Bushmaster manufacturing line

For years, Australian SMEs have been asking the same question:

"How do we actually get into the defence supply chain?"

The release of the 2026 Defence Industry Development Strategy (DIDS) provides one of the clearest answers we've seen in years.

This isn't just another government strategy document. It's a roadmap that places Australian industry at the centre of national security while creating real opportunities for businesses capable of supporting Defence capability. The Strategy introduces stronger support for sovereign manufacturing, streamlined procurement, increased Defence Industry Development Grants, expanded workforce initiatives, greater export support and a renewed focus on Australian innovation and industrial capability.

So what does this actually mean for Australian businesses?

More opportunities... but also higher expectations.

The Defence landscape is changing rapidly.

Defence isn't simply looking for suppliers anymore. It's looking for businesses that can demonstrate:

✅ Capability maturity

✅ Quality systems

✅ Security compliance

✅ Sovereign capability

✅ Skilled workforce development

✅ Supply chain resilience

✅ Innovation

Companies that can demonstrate these attributes will be far better positioned as Defence and Prime Contractors continue building Australia's sovereign industrial base.

The challenge for SMEs

Many capable Australian businesses already have the technical capability to work in Defence.

What they're often missing is understanding:

  • Where they fit.

  • Which programs they should target.

  • What certifications they require.

  • How to engage Primes.

  • How to respond to Defence opportunities.

  • How to demonstrate Australian Industry Capability.

That's where many businesses lose momentum.

Where Australian Industry Ready can help!

At Australian Industry Ready, we work with businesses that want to participate in Defence but aren't sure where to start, or how to move to the next level.

We help organisations:

✔ Assess their Defence readiness

✔ Identify capability gaps

✔ Develop practical action plans

✔ Understand Defence procurement

✔ Strengthen Australian Industry Capability (AIC)

✔ Connect with Defence supply chain opportunities

✔ Position themselves for Prime Contractor engagement

The 2026 Defence Industry Development Strategy makes one thing very clear:

Government investment alone won't create sovereign capability. Industry has to be ready to deliver it.

Businesses that prepare now will be in the strongest position as new programs, procurement reforms and investment opportunities continue rolling out over the coming years.

Paul Gibbs
Next

Soldier’s 5 - #2 - From industry engagement to industry impact