Western Australia's Defence Industry Growth: Opportunities for New Zealand and International Companies

In short: Western Australia is positioning defence as one of its largest industries, supported by major Australian Government investment in naval shipbuilding and sustainment. Opportunities extend beyond major defence contractors to engineering, manufacturing, technology and specialist service companies. New Zealand businesses have an advantage under trans-Tasman industry arrangements, while international suppliers can explore opportunities through local partnerships and prime contractor supply chains.

Western Australia's defence ambitions

Western Australia is making a significant push to grow its defence industry.

The state government expects defence to become Western Australia's second-largest industry after mining. Supporting that ambition is substantial Commonwealth investment in defence infrastructure, shipbuilding and sustainment.

In September 2025, the Australian Government announced an initial A$12 billion commitment towards the Henderson Defence Precinct, intended to support continuous naval shipbuilding and Australia's AUKUS commitments.

Early planning also indicated that the precinct could require approximately A$25 billion in infrastructure investment over the decade. This is an estimate of the wider infrastructure requirement, not funding already committed.

The investment is significant for Western Australia's economy, but it also creates opportunities for companies beyond the major defence contractors.

Shipbuilding and sustainment programmes depend on extensive supply chains, including engineering, advanced manufacturing, components, specialist equipment, technology, logistics and professional services.

For New Zealand and overseas companies considering the Australian market, Western Australia deserves attention.

Source: Australian Government - Henderson Defence Precinct

What Land Forces 2026 revealed

I attended Land Forces 2026 in Perth in October. With nearly 1,000 exhibitors from 31 countries, the event brought together established defence companies, emerging technology businesses, government representatives and industry organisations.

What struck me was the diversity of capability on display.

There were the major international defence contractors, as expected, but also a wide range of smaller companies developing technologies and specialist products with potential defence applications.

For businesses looking to enter the Australian market, events like Land Forces provide an opportunity to understand where the industry is heading, meet potential partners and establish relationships.

Having worked with defence prime contractors in New Zealand and Australia, I know how important it is to understand the customer's requirements and demonstrate that you can deliver.

For a company entering a new market, that includes understanding who the buyers are, how procurement works and where its capabilities fit within the established industry.

Opportunities extend beyond direct defence contracts

Companies considering Western Australia's defence industry should look beyond tenders issued directly by the Australian Department of Defence.

Major defence programmes involve multiple tiers of suppliers. Prime contractors depend on specialist businesses for components, materials, engineering, maintenance, systems and services.

Working through these supply chains can provide a practical route into the market, particularly for smaller businesses.

It also means that companies which do not traditionally describe themselves as defence suppliers may have relevant capabilities.

For example, a manufacturer serving mining or heavy industry may have experience in fabrication, reliability, maintenance or remote operations that is relevant to defence applications.

Similarly, businesses developing robotics, sensors, software or automation technologies may find opportunities to adapt existing capabilities.

The starting point is to identify a credible application for the technology or service, understand the requirements and determine who could be a suitable customer or industry partner.

Australian Government procurement opportunities are published through AusTender, which also provides access to Annual Procurement Plans outlining significant anticipated procurements.

These plans give prospective suppliers advance information about potential requirements, although they are indicative and can change.

Working with primes and pursuing direct government procurement are both routes worth exploring.

Why New Zealand companies have an advantage

New Zealand businesses have a particular advantage when exploring Australian defence industry opportunities.

Under the Australia-New Zealand Closer Economic Relations arrangements, qualifying New Zealand companies can be recognised as Australian industry for Australian Industry Capability purposes.

New Zealand's Defence Industry Strategy also identifies closer integration with Australia's defence industry as a priority, including efforts by both countries to reduce barriers for New Zealand businesses entering the Australian market.

These arrangements can put New Zealand businesses in a better position than some other international suppliers, although specific procurement requirements and eligibility conditions still apply.

It was encouraging to see several New Zealand businesses exhibiting under the New Zealand Defence Industry Association (NZDIA) pavilion at Land Forces.

Their presence was a reminder that New Zealand companies are already participating in this market.

However, favourable industry arrangements are only part of the picture.

A New Zealand business still needs to identify suitable opportunities, demonstrate its capabilities and build relationships with prospective customers and partners.

For businesses without an established presence in Western Australia, local market knowledge and connections can be particularly useful.

Source: New Zealand Ministry of Defence - Defence Industry Strategy

Innovation and collaboration at the Australian Automation and Robotics Precinct

One of the highlights of my visit was spending time at the Australian Automation and Robotics Precinct (AARP) in Neerabup, north of Perth.

The precinct provides facilities for companies developing and testing robotics, autonomous systems, remote operations and related technologies.

It includes dedicated testing areas, workshops, laboratories and co-working facilities.

What impressed me was the energy around the precinct and the enthusiasm of its management team. They are actively promoting the facilities and looking for companies to make use of them.

For businesses developing defence or dual-use technologies, facilities like AARP may provide opportunities to test applications, work alongside other innovators and develop industry relationships.

The visit also highlighted something important about Western Australia's growth ambitions: investment in defence is being supported by a broader effort to develop technology, skills and industrial capability.

Australian Automation and Robotics Precinct

How to approach the Western Australian defence market

For a New Zealand or international company exploring opportunities in Western Australia, I would recommend starting with five questions:

1. Where does our capability fit? Identify relevant defence programmes, industry requirements and potential applications.

2. Who are the potential customers? Consider prime contractors, their suppliers and defence organisations.

3. What local capability is expected? Understand requirements for ongoing support, maintenance, training or other services.

4. Who should we be talking to? Identify suitable local companies, industry organisations and potential partners.

5. What would a practical market entry plan look like? Decide how to approach the market and what investment in relationships or local presence would be justified.

These questions help establish whether an opportunity is worth pursuing before committing substantial time and resources.

For international companies considering both Australia and New Zealand, there are also important differences between the two markets.

Related reading (available from 27 October 2026): Entering the Australian and New Zealand Defence Markets: What International Suppliers Need to Know

Related reading: Land Forces 2026: Defence Industry Opportunities and Market Entry Insights

How Defence Ready can help

Western Australia's defence growth creates opportunities for companies with relevant capabilities, but accessing those opportunities requires more than identifying a prospective customer.

Defence Ready helps New Zealand businesses explore the Western Australian market through local knowledge, industry connections, introductions and market entry support.

We also work with international defence and dual-use companies seeking to establish themselves in the Australian and New Zealand markets.

If your business is considering Western Australia, we can help you identify where to focus, who to engage with and how to approach the market.

Contact Defence Ready to discuss your plans.

Contact

Talk to Rob about entering the New Zealand, Australian or Polish defence markets, local representation, partnerships, readiness or export opportunities.

defence@touchstone.nz

+64 9 243 0609

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