Australia focuses on self-reliance in defense manufacturing with western companies, says GlobalData

Australia has been making significant efforts to promote domestic defense manufacturing in recent years, which has led to a considerable drop in its overall imports. Currently, a majority of Australia’s defense platforms, such as military land vehicles, artillery systems, and naval vessels, are locally produced. To gain self-reliance in defense manufacturing, the Australian government is prioritizing access to Western technologies with various assistance programs, says GlobalData, a leading data and analytics company.

GlobalData’s latest “Defense Platform Import/Export Dashboard” reveals that the US is one of the major exporters of defense platforms to Australia, with a share of 71.7% of import value during the period 2016–2022, followed by Italy. The US is projected to export $33.8 billion worth of defense platforms between 2023 and 2033, which includes Virginia-class submarines, MQ-4C Triton UAVs, UH-60M & MH-60R helicopters, and C-130J aircraft, among others.

Sai Kiran, Aerospace and Defense Analyst at GlobalData, comments: “Australia is one of the crucial partners of the US in countering China’s aggression in the Indo-Pacific region, owing to Australia’s geographical proximity. As a result, the US has been promoting the presence of US-based defense companies in Australia to enable easy access to weapons production in the country. This has benefited Australia in supporting its broader vision of self-reliance in the defense sector by having easy access to Western technologies while significantly eliminating the risk of logistic issues associated with imports during emergencies.”

However, some platforms such as military fixed wing, military rotorcraft, UAVs, and submarines, are still imported from other countries, including the US, Italy, Spain, Switzerland, France, and Germany.

Kiran concludes: “Defense companies originating from other NATO countries have also set up bases in Australia with increased assistance from the local government. For instance, the recent investment of AUD220 million ($140 million) by the Australian government in two munition plants managed by Thales Australia, a subsidiary of French defense company Thales Group, also aligns broadly with Australia’s current defense priorities.”

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