By Hon Chris Penk

Growing the New Zealand defence industry offers a significant opportunity for small businesses and manufacturers.

Wearing both my hats as the Associate Defence Minister and the Minister for Small Business and Manufacturing, I launched the New Zealand Defence Industry Strategy alongside my colleague and friend Defence Minister Judith Collins in early October.

This follows the major Defence Capability Plan released earlier this year, which outlines a path to double defence spending over the next eight years, starting with $12 billion of planned commitments in the first four years.

The Defence Industry Strategy shows how Defence and industry will work together to deliver these plans while building a strong, resilient sector that provides economic opportunities for local businesses and opens doors to export markets.

Small businesses and manufacturers are at the heart of this approach. New Zealand already has a highly skilled industrial base, with more than eight hundred suppliers providing essential services and capabilities to the Defence Force.

The strategy creates pathways for these businesses to grow, take on high-value projects, and work on initiatives that were previously the domain of larger multinational companies.

Several practical actions support this aim. Major suppliers will be required to outline how they will collaborate with local companies, and Defence will work with Kiwi innovators to showcase New Zealand-made equipment and services to international partners.

The strategy also opens the door to more involvement in projects that deliver and sustain defence capability, from engineering and maintenance to training and commercial services.

The establishment of a Technology Accelerator, with an indicative investment of one hundred to three hundred million dollars, will give small and medium-sized enterprises the chance to develop advanced technology with both domestic and export potential.

New offshore opportunities will allow Kiwi businesses to access international markets and gain exposure that has often been difficult to reach.

It was wonderful to have SYOS Aerospace with us at the Defence Industry Strategy launch. The Tauranga-based drone manufacturer gave a live demonstration of their technology, and they show how working closely with the Defence Force can turn innovative ideas into practical solutions.

The benefits extend beyond individual companies. A stronger defence industry strengthens supply chains, creates jobs, and encourages investment in research and development.

By building capability and resilience at home, New Zealand businesses are better positioned to respond to global uncertainties.

More local suppliers will be involved in high-value projects, more New Zealand-designed and built products will be used at home and abroad, and the overall industrial base will become more robust.

New Zealand is already a leader in advanced manufacturing and innovation. It was a pleasure to take part in the Aerospace Summit in Christchurch recently, for a discussion about manufacturing processes and the uncompromising quality standards driving aerospace innovation in New Zealand.

The country’s aerospace sector has grown rapidly, contributing an estimated $2.6 billion to the economy in 2024, up from $1.7 billion in 2019, with $402 million coming from space manufacturing activities.

Making aircraft and spacecraft is highly complex and technologically intensive. New Zealand manufacturers are proving they can meet these exacting standards, while delivering products with global appeal.

For small businesses and manufacturers, the Defence Industry Strategy is an invitation to be part of this growth story. It is an opportunity to take on bigger projects, develop new capabilities, and reach new markets while contributing to the country’s security.

Growing New Zealand industry means stronger businesses, more jobs, and a more resilient economy.

The work of local manufacturers today is building the Defence Force and the economy of tomorrow.