Local companies and jobs in the Australian defence industry are set to benefit from the significant expansion of the Global Supply Chain (GSC) program.
On Monday, Minister for Defence Industry Pat Conroy announced the GSC program would revise its number of participating major defence companies from seven to 13 following an “extensive approach to market”.
The defence industry companies are now Babcock, BAE Systems, Boeing, Huntington Ingalls Industries, Kongsberg, L3 Harris, Lockheed Martin, Moog, Northrop Grumman, Raytheon, Rheinmetall, SAAB and Thales.
Conroy said expanding the number of so-called ‘primes’ would deliver on a commitment of the Defence Industry Development Strategy (DIDS).
“Expanding the program will provide Australian businesses with greater access to the broader export markets, and will increase opportunities to integrate into the international supply chains of the GSC Program partners,” Conroy said, noting that the need for scale, competitiveness and sustainability underscored in the DIDS.
Under the DIDS, Australia will need to elevate and grow its defence industrial base as a matter of strategic importance and national security.
Defence industry exports will be critical to grow the resilience of sovereign capability.
“The Albanese government understands just how important the growth and sustainability of the Australian defence industry is to meet our strategic needs, and to also contribute to a future made in Australia,” Conroy said.
The GSC is designed to support Australian businesses in diversifying their revenue, driving economies of scale and building resilience through exports by integrating into global supply chains.
To date, the program has delivered 2,450 contracts worth more than $1.9 billion for 258 Australian suppliers.
The government has also updated the GSC performance framework to now include a plan to promote the scaling and growth of Australian businesses; expand the scope of exports to consider the continuum between domestic and international projects; identify opportunities for Australian innovation early in the development cycle; and develop performance metrics to allow Defence to measure the success of primes and the program.
“[We are] proud to be continuing and expanding the GSC program as a way of supporting Australian businesses to grow and in turn create jobs for locals,” the minister said.
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