"The release of Australia's AUKUS Submarine Industry Strategy provides a welcome starting point for building a stronger submarine industrial base to support the AUKUS partnership. Ai Group appreciates the strategy's overall approach, which highlights the vital role of skills, education, training, and workforce development in this transformative effort," said Innes Willox, Chief Executive of the national employer association Ai Group.
"The strategy identifies critical areas – workforce growth, supply chain resilience, and industry engagement – that will help underpin the uplift of our industrial base. We commend initiatives like the Defence Industry Development Grants Program, broader industry support measures, and the introduction of industry engagement 'portals', which offer a much-needed entry point for businesses wanting to contribute.
"While this marks an essential first step, the strategy remains a high-level vision rather than a detailed roadmap. Given the scale of investment and the fierce competition for skilled labour across defence and related sectors, a nationally coordinated workforce and industrial strategy – developed with industry input and backed by clear action plans – is needed to give businesses the confidence to invest and adapt.
"The focus on grants and support programs is encouraging, yet more detail is required to clarify Australia's role in shaping the SSN AUKUS design and securing specific industrial outcomes. Our view is that setting clear expectations – supported by practical mechanisms – will be key to ensuring Australian industry thrives within the AUKUS framework.
"With the Commonwealth committing approximately AUS$9 billion to strengthen the US and UK submarine industrial bases, Ai Group looks for a proportional level of commitment to Australian industry. Greater transparency on how workshare will be secured, alongside defined supply chain priorities, would help ensure our businesses capture the opportunities this program promises. It will be vital that, in addition to the 'push' measures such as grant programs, the Government is clear about its expectations for 'pull' measures – that is, what it will expect in terms of Australian Industry Capability and how that will be delivered within Australia's overall procurement framework.
"We also note the strategy would benefit from closer connections to the broader naval shipbuilding and sustainment and other Defence capability and procurement efforts. Given the program's significant budget and its impact on Defence spending, Ai Group suggests enhanced oversight of the Australian Submarine Agency (ASA) budget, potentially through a dedicated funding line for the nuclear-powered submarine enterprise.
"Transitioning ASA into a delivery-focused organisation could further sharpen its ability to move more rapidly from a policy-based organisation to project delivery. Additional industry and technical skills within ASA would fundamentally assist in this regard.
"Despite these challenges, the strategy opens the door to significant opportunities for Australian industry. The potential for job creation, skills development, and growth in small-to-medium enterprises across the supply chain is significant, positioning Australia as an important player in this historic partnership with the US and UK.
"Ai Group views this strategy as a valuable milestone in delivering Australia's submarine fleet. To build on this foundation, we look forward to partnering with the Government to refine these ambitions into a clear, actionable plan that strengthens national defence and maximises benefits for Australian industry," Mr Willox said.
