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Australia’s defence sector is growing fast, with significant expenditure committed to local capability under the Defence Strategic Review and AUKUS. But despite this momentum, many defence companies, both local and global, are facing a frustrating problem: their primary customer, the Australian Defence Force, often doesn’t know who they are or doesn’t fully understand what they do, writes Chandran Vigneswaran.
Some say this lack of understanding of the defence industry is unique to Australia, or at least different to the US and UK, where the spectrum of companies and their capability whether it be at the prime, mid-tier or SME level is intrinsically understood. Others point to a rapidly evolving industry that looks very different to what it did 10 or 15 years ago, with significantly different players and those who were around looking very different themselves.
This isn’t just a marketing issue. It’s a structural disconnect. The ADF isn’t a single buyer presenting a single face. It’s a complex web of commands, programs and procurement pathways. Companies find themselves pitching into this system blind. They attend expos, send capability briefs and engage with their primary contacts within Defence, but still struggle to get in front of the right decision makers. In many cases, they’re not even sure who those people are. And frankly, that’s a pretty big problem. If you’re a defence company with this problem, trust me, you’re not alone.
On the other side, Defence personnel are overwhelmed with options. They’re tasked with delivering capability on tight timelines while juggling risk, compliance and the changing priorities presented by the combination of an environment of rapidly evolving risk and short political terms. And while procurement systems are evolving, they need to evolve faster to deliver the strategic imperative facing our nation. In this environment, Defence personnel don’t have time to explore every new tech provider or engineering firm with potential. If your name isn’t already known or your product doesn’t fit neatly into an existing program, you might never get a look. In some cases, personnel believe they know a company well, engage regularly, and are aware of their performance on existing programs, but they have been exposed to just one pillar of that company’s capability and are blind to the broader organisation.
This creates a visibility gap. Great capability sits on the shelf. Companies wait for RFTs that never come. Defence misses out on innovation. And ultimately, the taxpayer doesn’t get the best result.
So how do we fix it?
First, defence companies need to stop assuming that good tech speaks for itself. It doesn’t. Clear communication. what you do, why it matters, and how it fits into Defence priorities – is essential. That means translating technical capability into operational relevance. Not just “we build drones,” but “our ISR drone reduces the time to detect threats in littoral environments by 70 per cent”.
Second, Defence needs to open more doors. There are some great initiatives already in play, like the Defence industry hubs, innovation challenges and engagement events, but these need consistency and follow-through. Companies need feedback. They need continuity. They need assurance of demand. And they need visibility of upcoming programs earlier in the cycle so they can plan effectively.
Third, we need better connectors. People or platforms that actively match real Defence needs with available industry capability. Right now, the burden of discovery is mostly on the vendor. A reverse pitch model, where Defence teams actively broadcast their pain points to industry could shift that dynamic. At the same time, this is the opportunity for defence businesses to help create a greater understanding of possible solutions even if the technology is in its infancy. This can shape demand.
Fourth, defence companies need to engage more broadly across Defence. Like large companies, internal communication doesn’t always work. You can’t expect that if you have created an understanding of your capability in one part of Defence that the entire enterprise is informed.
Finally, as was acknowledged in the DIDS, there’s a cultural shift needed. Risk aversion is built into the system, and for good reason. But it often makes it easier to go with a known name, even if it’s not the best solution. Breaking that pattern requires leadership from both Defence and defence industry to champion smaller players and give new entrants a fair go.
Australia’s strategic environment is changing fast. We can’t afford to leave good ideas in the dark because of a visibility issue. The more Defence knows about what’s actually available in its own backyard, the stronger and more agile our nation’s defence industries become, and the greater our sovereign capability will be.
Chandran Vigneswaran is the principal of Chandran Thinc.
