Government expands defence global supply chain programme

The federal government is significantly expanding the Global Supply Chain (GSC) Program under which defence prime contractors help their suppliers penetrate international defence markets.

The number of major defence prime contractors participating in the GSC Program will almost double from seven to 13, delivering on a commitment made in the Defence Industry Development Strategy (DIDS).

The DIDS outlined the importance of the GSC Program and the need to expand the number of participants to support Australian businesses to integrate into global supply chains, diversify their revenue, drive economies of scale and build resilience through exports.

Since its inception, the Program has delivered 2,450 contracts worth over $1.9 billion to 258 Australian suppliers.

The programme now includes Babcock, BAE Systems, Boeing, Huntington Ingalls Industries, Kongsberg, L3 Harris, Lockheed Martin, Moog, Northrup Grumman, Raytheon, Rheinmetall, SAAB and Thales.

Kongsberg Defence Australia’s Managing Director John Fry said: “The GSC Program has successfully facilitated many contracts since its establishment, boosting the global competitiveness of many Australian suppliers.

“We are delighted to be one of the new Primes selected as part of this program and look forward to identifying export opportunities for Australian suppliers to produce world-class and innovative defence capabilities in support of KONGSBERG’s international supply chain.”

The GSC Program has also updated its performance framework to include:

• A plan to promote the scaling and growth of Australian businesses
• An expanded scope of exports to consider the continuum between domestic and international projects
• Identification of opportunities for Australian innovation early in the development cycle
• And performance metrics to allow Defence to measure the success of primes and the programme.

The Minister for Defence Industry Pat Conroy said: “Expanding the programme will provide Australian businesses with greater access to the broader export markets, and will increase opportunities to integrate into the international supply chains of the GSC Program partners.”