What does future leadership look like in the defence industry?
The Australian defence industry faces a significant challenge in attracting and retaining top leaders. Increasing complexity and technological advancements demand a highly skilled workforce, however, the competition both within the sector and with other industries for such talent is fierce. The Defence Industry Workforce Strategy outlines the need for upskilling and increasing the talent pool to meet future demands (Australian Department of Defence, 2020).
Developing effective leaders within the defence industry is critical, but there is a gap in leadership training and development programs tailored to the unique demands of the defence environment. Effective leadership is essential for navigating the complexities of defence operations and strategy. Our previous work in the defence sector highlights the need for robust leadership development programs to ensure strategic and operational effectiveness.
Increase in defence spending
The Australian government has significantly increased its defence budget, with spending reaching a record $55.7 billion for the 2024-25 fiscal year. This represents a 6.3% increase from the previous year, and spending is projected to continue rising, reaching $100 billion by 2033-34, exceeding 2.3% of GDP(AusDefMag, 2024).
Market growth
The Australian defence market is expected to grow at a compound annual growth rate (CAGR) of more than 5% from 2024 to 2028. This growth is driven by redefined strategic priorities, including the acquisition of advanced capabilities such as submarines, military fixed-wing aircraft, and electronic warfare systems(IBISWorld, 2024)
Jobs created in defence
The Australian defence industry saw substantial job growth in 2023, adding nearly 4,000 direct jobs, which is a 6% increase compared to the previous year. This brings the total number of jobs supported by the industry, including those in the supply chain, to over 100,000 across Australia (ABS, 2024).
Top three industries dominate defence jobs
The three largest industry contributors to defence industry gross value added (GVA) were: professional, scientific and technical services with 45.2% of GVA; manufacturing with 15.4% of GVA; construction with 15.0% of GVA (Mandarin, 2024)
Read about our latest work in Defence leadership
