The Impact of the 2018 Defence Industrial Capability Plan on Australia’s Defence Industry

The Impact of the 2018 Defence Industrial Capability Plan on Australia’s Defence Industry

Australia’s defence industry has been a vital component of the country’s sovereignty and security for many years. In 2018, the Australian government released a new Defense Industrial Capability Plan (DICP) outlining its commitment to a strong and sustainable defence industry. This plan focuses on enhancing the country’s defence capability and building a robust and globally competitive defence industry while creating jobs and enhancing economic growth. In this article, we will delve into the impact of the 2018 DICP on Australia’s defence industry.

The Strategic Context

Before examining the impact of the 2018 DICP, it is important to understand the strategic context of Australia’s defence industry. Australia’s strategic environment is becoming increasingly complex and challenging. The strategic shift towards the Indo-Pacific region, driven by the rise of China, is creating new and significant geostrategic challenges for Australia. Furthermore, the changing nature of conflict and technology is rapidly transforming defence capabilities worldwide. This has placed pressure on countries, including Australia, to modernize their defence capabilities and infrastructure to keep pace with the evolving security challenges.

The Defence Industrial Capabilities Plan

The 2018 DICP was developed to address these challenges and build a strong and sustainable Australian defence industry. The plan identifies ten capability streams, spanning from Munitions and Small Arms to complex systems integration, to grow the Australian defence industry’s capability and capacity. This will support the Australian Defence Force (ADF) to acquire and sustain the world-class capability required to protect Australia’s interests. The plan also aims to increase the Australian industry’s competitiveness on the international stage and promote innovation and investment in the sector.

Impacts of the DICP

The 2018 DICP has had a significant impact on Australia’s defence industry. Firstly, the plan has created a renewed focus on the importance of Australian industry capability and sovereignty. The introduction of Australian Industry Capability (AIC) policy and Investment and Innovation Program have strengthened local industry support and involvement in defence procurement programs. This is leading to increased collaboration across industry, academia, and government in developing innovative solutions for the ADF.

Secondly, the plan has driven the development of new and advanced manufacturing capabilities in Australia, from developing new munitions to creating enhanced electronic systems and technologies. Australia’s defence industry is benefiting from these capabilities, and this is expected to lead to new export opportunities in the coming years.

Lastly, the DICP has increased the government’s investment in Australian defence industry, creating jobs and driving economic growth. In 2019-20, the Australian government invested $1.9 billion in defence innovation, infrastructure, and technology.

Conclusion

The Defence Industrial Capability Plan has had a significant impact on Australia’s defence industry, creating new and advanced manufacturing capabilities, increasing local industry involvement in defence procurement programs, and driving innovation, investment, and economic growth. The 2018 DICP is an essential step in ensuring Australia’s defense industry is strong and sustainable, capable of delivering the capabilities required by the ADF to protect Australia’s interests and contribute to global security.

In conclusion, the DICP is an extension of the Australian government’s focus on ensuring national sovereignty and improving self-reliance in the defence space. It is an exciting time for the Australian defence industry and one which will result in a strengthened capability well into the future.

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