New Zealand Defence Industry Strategy: Boosting Local Businesses and Resilience

Supporting New Zealand industry to deliver defence equipment and infrastructure while growing local businesses is behind a strategy launched today by Defence Minister Judith Collins and Associate Defence Minister Chris Penk.

Earlier this year we released the 2025 Defence Capability Plan (DCP), which outlines our path to double defence spending in the next eight years – starting with $12 billion of planned commitments in the first four years, Ms Collins says.

Today we are releasing the Defence Industry Strategy, which details how Defence and industry will work together to deliver the DCP while building a strong, resilient industry that delivers economic growth and grows our export markets, Ms Collins says.

New Zealand is not immune from the increasing tensions felt throughout the world. We must build resilience in our supply chains, so we are less affected by events outside of our control.

We have the talent and the will. We now need to build the supports and clear the way for innovation.

Defence is already a major contributor to our economy, investing hundreds of millions of dollars with local companies in engineering and commercial services as well as in maintenance, repair and training support, Mr Penk says.

But there is much more we can do to help businesses grow. Practical steps include requiring large multinationals to set out plans for working with local companies on major Defence equipment, and encouraging Defence and Kiwi innovators to collaborate in showcasing New Zealand–made equipment and services to our partners.The New Zealand Defence Industry Strategy highlights a number of actions over the next four years to deliver capability faster, with resilience, while empowering Kiwi industry. This includes: Requiring major suppliers to develop and submit plans outlining how they will work with New Zealand industry to deliver and sustain defence capability.

Establishing a Technology Accelerator, with an indicative investment of $100-$300 million, through which Defence will work with the advanced technology sector on military use technology for the NZDF and with export potential.

Creating new offshore opportunities for businesses, including showcasing Kiwi innovations to international partners.

A great example of this is Tauranga-based drone manufacturer SYOS Aerospace, which has a research and development collaboration with the New Zealand Defence Force and that provided a demonstration at today’s launch, Ms Collins says.

During my recent visit to Ukraine, I saw the importance of agile, innovative and collaborative product development to respond to the rapid pace of change on the modern battlefield – as SYOS is doing.

We know that New Zealand’s Defence industrial base includes more than 800 suppliers providing a wide range of essential services and capabilities to the New Zealand Defence Force, Mr Penk says.

Through the actions in this strategy, we look forward to seeing the industry grow, from New Zealand-designed or built products being used at home and overseas, to greater infrastructure development and more domestic contractors supporting high-value military procurement.

When the world around us is changing at such a pace, we need to change our approach to how we equip our Defence Force, and we need to work in partnership with industry to be better together. Not to do so would be irresponsible, Ms Collins says.