NEW ZEALAND DEFENCE INDUSTRY: RELATIONSHIPS TRUMP CONTRACTS & COLLABORATION BEATS ISOLATION

By Andrew Ford,

Chair, New Zealand Defence Industry Association

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.

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. 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 Although the majority of major capability is sourced equipment manufacturers, logistics, maintenance and engineering providers, technology and security companies, professional and advisory services overseas, there remains significant opportunity for consultants, overseas defence, maritime and aerospace primes, facilities and infrastructure construction and maintenance providers. New Zealand and Australian While focus on domestic markets may sustain companies to cooperate and New Zealand companies, the majority need to look to international markets for growth. New Zealand Trade collaborate in the through-life and Enterprise (NZTE) has recognised the growing support of these and future regional investment in defence and national security markets and has established a team to focus on export capabilities as Governments opportunities in the Australian ship build program and seek to strengthen sovereign other major Defence investments. capability and regional NZDIA are available to connect Australian suppliers to New Zealand member companies for domestic and supply chains in the wake of international opportunities, and to assist in connecting COVID-19 disruption. companies to industry market engagement leads in NZDF, MoD, NZTE and other stakeholder government agencies.

Credit: Envato Elements

The last years have taught us that relationships trump contracts and collaboration beats isolation. It is our clients’ experience that international supply chains have been and will continue to be significantly disrupted, and that access to international expertise is similarly restricted. Innovation in social networking and online meeting has provided a virtual response, but reliable products and services on the ground in New Zealand and Australia requires industry to collaborate with remote expertise for local delivery.

The annual New Zealand Minister of Defence Awards of Excellence to Industry have, over the past three years, seen consortia of international and domestic suppliers being recognised in each category of award, demonstrating that our clients are looking for solutions through industry-led collaboration. They are looking for the best of international capability underpinned by reliability of local delivery and support.

Though the borders may be closed, the doors are open to building relationships of mutual benefit. Inter-dependence of domestic industry capacity and capability in times of crisis has provided a new appreciation for sovereign and regional supply chains. Our challenge as defence industries is to communicate, connect, and collaborate.

Integral to the Royal New Zealand Air Force’s inventory are eight NH90 medium utility helicopters that are used for a variety of tasks and operations. © NZDF.