Defence + Industry Conference 2026: reform in action
The Defence + Industry Conference 2026 came at an important moment for Australia’s defence sector. A lot of new policy has recently been released — including the 2026 National Defence Strategy, Integrated Investment Program and Defence Industry Development Strategy — but the real focus of the conference was what happens next.
In plain terms, Defence is trying to change the way it makes decisions, works with industry and delivers the equipment and support the Australian Defence Force needs. Minister for Defence Industry Pat Conroy made it clear that these reforms are not just about changing names or boxes on an organisation chart. They are about making the system easier to navigate, faster to act and more useful for the people and businesses trying to support Defence.
Making Defence easier to navigate
One of the biggest changes announced is the creation of the Defence Delivery Group. This brings together several major delivery areas — including acquisition, naval shipbuilding and guided weapons — under one clearer line of responsibility.
Capability development is also being brought together under the Vice Chief of the Defence Force, which should make it clearer who decides what Defence needs and who is responsible for delivering it. Conroy described the day as “the first day of the first phase of our landmark reforms,” but he was also careful to say this is about “fixing a system,” not blaming people.
His main point was simple: “We need clearer accountability, we need streamlined decision making.” For industry, that means Defence is aiming to be a more organised and predictable customer.
Getting industry involved earlier
Procurement was another major theme. Put simply, Defence wants to get better at buying what it needs — and at involving industry earlier, before decisions are locked in. The suggestion was this could happen through integrated project teams or other early engagement channels, although the exact process is still being worked through.
Conroy said industry would be brought “into the process a lot earlier,” because Defence needs to better understand what businesses can actually offer. He also pushed back on the idea that the rules themselves are the main problem, saying: “I don’t think it’s the procurement guidelines that drive most of the delays; it’s the way we interpret them.”
The practical takeaway is that businesses should keep a close eye on the Integrated Investment Program and look for opportunities to share insight before formal tenders appear.
What sovereign capability means in practice
The discussion also helped explain what “sovereign capability” really means. In everyday terms, it is about Australia having enough local knowledge, skills, facilities and access to technology to support key defence needs without relying too heavily on others.
The seven Sovereign Defence Industrial Priorities cover areas such as aircraft sustainment, shipbuilding, land systems, guided weapons, autonomous systems, battlespace awareness, and testing and assurance.
Conroy explained sovereign capability as having “resident in this country the intellectual property, or access to the intellectual property,” along with the workforce, facilities and research base to make it real.
He also made the point that grants alone will not be enough. The bigger lever is Defence’s own investment decisions — or, as he put it, “altering the IIP, changing investment decisions to maintain capabilities.”
What the reforms could mean for SMEs
For SMEs, the mood was more mixed. There is clear opportunity in the reform agenda, especially if Defence genuinely engages earlier and gives smaller businesses a clearer view of future demand. But there is also frustration.
Many SMEs are hearing strong language about local industry and supply chain resilience, while still waiting to see funding and orders flow through. Some are finding faster returns in adjacent sectors or export markets, and many face real challenges in scaling up, improving security practices and competing for work.
Conroy acknowledged that Defence needs to rebuild its understanding of what industry can do, asking: if “Defence doesn’t understand what industry can offer, how can we shape capability development to maximise the benefits for the nation?”
The rebranded Defence Industry Hub may help, but SMEs will be watching closely to see whether the reforms lead to clearer pathways and real work.
Overall, the conference signalled a move from big-picture strategy to practical delivery — and the real test will be whether these reforms make it easier for Defence and Australian industry to work together, make decisions faster and turn good intentions into actual outcomes.
