COMMENTARY
By Andrew Ford, Chair, New Zealand Defence Industry Association
OCEANIA SECURITY
NEW ZEALAND DEFENCE INDUSTRY: RELATIONSHIPS TRUMP CONTRACTS & COLLABORATION BEATS ISOLATION In the 2020 briefing to incoming Minister of Defence (Hon Peeni Henare), defence industry was described as “a key partner and a fundamental input in the successful delivery and support of military capability”. The current MoD Defence Capability Plan outlines up to $20bn of capital investment out to 2030. Many of the capabilities have been or are in the process of build and delivery, including C-130J Hercules and P-8A Poseidon aircraft, frigate combat systems upgrade, ice-strengthened tanker, protected mobility vehicles and network-enabled land communications systems.
TRANS-TASMAN OPPORTUNITIES
Although most of its key capability is sourced overseas, there remains significant opportunity for New Zealand and Australian companies to cooperate and collaborate in the through-life support of these and future capabilities as governments seek to strengthen sovereign capability and regional supply chains in the wake of COVID-19 disruption. The size of the New Zealand’s domestic economy drives diversification for industry, bringing the benefit of other market experience to the services and supplies procured by Defence, and commercial experience in relationship-based procurement and partnership. The majority of New Zealand suppliers therefore have Defence as an important and significant client among many other markets and clients. There are some notable exceptions to this, including the major sustainment primes Airbus, Babcock and Lockheed Martin, and a few SME companies who have specialised in the provision of niche defence-specific products.
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Although the majority of major capability is sourced overseas, there remains significant opportunity for New Zealand and Australian companies to cooperate and collaborate in the through-life support of these and future capabilities as Governments seek to strengthen sovereign capability and regional supply chains in the wake of COVID-19 disruption.
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EDITION 4 • 2021-22
ROLE OF DEFENCE INDUSTRY ASSOCATION The New Zealand Defence Industry Association (NZDIA) was established in 1993 to promote New Zealand industry
involvement in the trans-Tasman ANZAC-class frigate build program. It is now an industry membership association with the purpose of “Connecting Industry with Defence and national security agencies for the benefit of New Zealand”. It is made up of some 160-plus domestic and international members that meet regularly with Defence and industry stakeholders to explore areas of opportunity in new capability, existing infrastructure and supply chains. The NZDIA provides a voice for industry participation in Defence procurement, to advocate for smaller New Zealand companies, and to connect all industry participants to collaborative solutions for Defence and national security clients in New Zealand and overseas. Our membership comprises niche equipment manufacturers, logistics, maintenance and engineering providers, technology and security companies, professional and advisory services consultants, overseas defence, maritime and aerospace primes, facilities and infrastructure construction and maintenance providers. While focus on domestic markets may sustain New Zealand companies, the majority need to look to international markets for growth. New Zealand Trade and Enterprise (NZTE) has recognised the growing regional investment in defence and national security markets and has established a team to focus on export opportunities in the Australian ship build program and other major Defence investments. NZDIA are available to connect Australian suppliers to New Zealand member companies for domestic and international opportunities, and to assist in connecting companies to industry market engagement leads in NZDF, MoD, NZTE and other stakeholder government agencies.
