As COVID-19 Slows, Funding Flows for Sovereign Capability

Australian defence companies are well aware of the government’s drive to secure andmaintain a capability edge in critical areas.

The supply disruptions caused by COVID-19 have only served to heighten thatimperative, which has bipartisan political support. SMEs are clear beneficiaries.

In recent months, three small Australian manufacturing businesses have received more than $2 million in support as part of the latest round of Sovereign Industrial Capability Priority grants.

Mr Jim Grose (Axiom Managing Director) and Mr Ben Barona (DST Group, Defence) examine the injection moulding die used to manufacture face mask strut components in support of Operation COVID-19 Assist.

The grants are designed to build up their sovereign capability, thereby avoiding Australian reliance on foreign companies for crucial Defence technologies and components.

South Australian companies Axiom Precision Manufacturing and M. & I. Samaras both received grants of $1 million, while NSW company Jehbco Manufacturing received $92,340.

Axiom has contributed to Australia’s COVID-19 response by producing face shields for health and aged care workers, and recently signed a contract for component supply for the Joint Strike Fighter Program.

It is the second Sovereign Industrial Capability Priority grant Axiom has received, and will be used to further develop its precision welding capabilities.

Weld Australia, based in NSW, has also received funding in a previous round.

The company is bringing a welding accreditation to Australia and developing Australian supply chains for the Land 400 Phase 2 project and beyond.

The companies are the most recent of 73 Australian small and medium businesses to benefit from the SICP grants program, to a combined value of $40 million since November 2018.

The intent is to grow Australia’s sovereign defence industry, ensuring Australia has the skills to deliver and sustain critical defence capabilities.

Additional benefits are boosting the economy and creating employment.