Govt Unveils Defence Industry Strategy to Boost Local Capability and Growth

The Government has launched a new Defence Industry Strategy aimed at strengthening New Zealand’s defence capability while driving economic growth and creating opportunities for local businesses. Announced by Defence Minister Judith Collins and Associate Defence Minister Chris Penk, the strategy sets out how Defence and industry will work together to deliver the ambitious 2025 Defence Capability Plan (DCP) and build a resilient, innovative industrial base.

Building on the Defence Capability Plan

Earlier this year, the Government released the 2025 Defence Capability Plan, outlining a roadmap to double defence spending over the next eight years. The plan earmarks $12 billion of commitments in the first four years, covering equipment upgrades, infrastructure, and support services for the New Zealand Defence Force (NZDF).

“The Defence Industry Strategy is the next step,” Collins explained. “It details how we will work alongside New Zealand businesses to deliver capability quickly and effectively, while also ensuring industry growth and export potential.”

Why Industry Partnerships Matter

Collins highlighted the growing international security challenges facing New Zealand. “We are not immune from the increasing tensions felt around the world. That means building resilience in our supply chains so we are less vulnerable to external shocks. We have the talent and will in New Zealand – now we need to create the right supports for innovation to thrive.”

Penk reinforced the economic contribution already made by Defence: “Defence invests hundreds of millions of dollars with local companies every year – from engineering and maintenance to training and support services. But there is much more we can do to grow Kiwi businesses and give them opportunities to expand into global markets.”

Key Actions in the Strategy

The Defence Industry Strategy sets out several practical steps over the next four years:

• Partnering with Major Suppliers: Large multinational defence contractors will be required to submit clear plans on how they will work with New Zealand businesses to deliver and sustain capability.

• Technology Accelerator: Defence will establish a $100–$300 million Technology Accelerator, working with the advanced technology sector to adapt civilian innovations for military use and to scale them for export.

• Showcasing Kiwi Innovation: New Zealand-made defence equipment and services will be promoted to international partners, opening up new offshore opportunities.

• Infrastructure Development: Greater involvement of domestic contractors in building and maintaining defence infrastructure, ensuring more of the investment stays within New Zealand’s economy.

A standout example highlighted at the launch was SYOS Aerospace, a Tauranga-based drone manufacturer working in collaboration with the NZDF. SYOS showcased its research and development capabilities, illustrating the kind of agile and innovative defence technology the Government aims to encourage.

“During my recent visit to Ukraine, I saw firsthand the importance of rapid, collaborative innovation on the battlefield. SYOS represents the kind of smart, flexible product development that New Zealand can excel in,” Collins said.

A Growing Defence Industry Base

New Zealand’s defence industrial base already includes over 800 suppliers providing essential goods and services to the NZDF. The Government wants to expand this base, encouraging more New Zealand-designed and built products to be used both domestically and internationally.

“Through the actions in this strategy, we want to see local businesses scale up, secure new contracts, and grow their export markets,” Penk said. “That means not just more infrastructure development here at home, but also a stronger presence in high-value global procurement opportunities.”

Preparing for a Changing World

The ministers stressed that the pace of change in global security requires New Zealand to adapt quickly. The strategy is designed to ensure the NZDF can be equipped with the tools it needs while giving industry a central role in delivering solutions.

“When the world around us is shifting so fast, we cannot rely on outdated approaches,” Collins concluded. “Equipping our Defence Force through strong partnerships with industry is not just an option – it’s a necessity. To do otherwise would be irresponsible.”

The Defence Industry Strategy will be rolled out alongside the Capability Plan, with the first initiatives beginning within the next year.