The New Zealand Defence Industry Strategy outlines a number of actions over the next four years to deliver capability faster, with resilience and support the implementation of the 2025 Defence Capability Plan.
A significant area of opportunity for New Zealand businesses in Defence is in partnership with, or as sub-contractors to, international prime suppliers for the supply of technology, components and specialist expertise. Such partnerships will be strengthened in line with new Government Procurement Rules by requiring prime suppliers to develop and submit NZ Industry Capability Plans to ensure the use of NZ industry in delivering and sustaining defence capability.
Defence will explore opportunities to use NZ businesses as ‘Thin Primes’. This is when a local Small to Medium Enterprise assumes total contract responsibilities for the delivery of equipment and systems to Defence, whilst sub-contracting the Original Equipment Manufacturers. Thin Primes are a way to introduce more competition into the Defence market, whilst providing an opportunity for SMEs to move up the value chain in supporting Defence.
With indicative funding of $100 - $300 million, the Technology Accelerator outlined in the Strategy represents a significant uplift in Defence’s ability to partner with the advanced technology sector. Whilst the focus will be on developing advanced technologies for military use by the NZDF, procurement decisions will consider export potential. The Accelerator will target New Zealand companies and start-ups.
The Strategy recognises that even with the uplift in spending on Defence in New Zealand, companies need to export into larger markets. The Strategy commits Defence to doing more to support this, including using its overseas engagement programme to demonstrate New Zealand industry capability and innovations.
The Strategy also identifies three Strategic Industrial Base Priorities. These are areas where New Zealand must have, or does have, industry capability which is critical for NZDF operations and is world leading and in demand with partner defence forces. The three areas are space capabilities, uncrewed systems and counter-systems, and sustainment. The Strategy commits Defence to producing Strategic Industry Base Statements that will provide a deeper understanding of Defence’s needs in these areas, how Defence will support the sectors, and the opportunities for innovation and doing things differently.
