Australia is uniquely suited to help solve the greatest defence acquisition challenge of our time. While the world is innovating at an unmatched pace, the old scions of the defence industry are not.
Western armed forces need equipment that is developed and built not just more cheaply and quickly but with evolution built in. They cannot keep waiting for superb systems that take many years, even decades, to get into service and cost so much that few units can be bought—and are then improved only on achingly slow schedules, if at all.
General Jim Rainey, the commander of the US Army Futures Command, had sharp comments when he visited ASPI this spring: ‘We need to change and adapt how we acquire. We are either going to do it now or we are going to do it when we go to war.’
Australia’s chief of army, Lieutenant General Simon Stuart, was equally sanguine: ‘As one of my predecessors, Sir Henry Wells, adroitly put it in 1957, we must “avoid the situation where soldiers have to be killed to learn”.’
And at ASPI’s Sydney Dialogue in September, Abraham M Denmark, a senior associate from the Center for Strategic and International Studies, had a blunt call to action: ‘Adapt or die.’
By all appearances, US and British primes contractors have chosen ‘die’. Despite increasing calls to change the way they develop defence technologies, they keep podding along with their old processes. At Land Forces 2024, while discussing how the Australian Army relied on space, Northrop Grumman offered to lend its ‘experience and primacy in space’ to help up-and-coming firms—but seemed to have no direct answer to Starlink, a cost-effective commercial service that militaries across Europe and the Indo-Pacific are looking to.
Pillar 2, the part of AUKUS that is not about nuclear submarines, has not enjoyed the detailed attention of Pillar 1, which is. It has been dismissed occasionally as a grab bag of disparate technologies, but a common thread runs through them. Not only will they be critical in a future fight; they are all innovations that primes have failed to deliver over the past decade. China is investing heavily in these technologies and, according to ASPI’s Critical Technology Tracker, is now outpacing the AUKUS partners.
At Land Forces, the US and British prime contractors at least acknowledged the problem, conceding they needed to reduce historical seven- to 10-year production timelines down to 18 to 24 months. It’s unclear how the prime contractors, widely known for cost overruns and delayed delivery, can cut their development times by 80 percent. Regardless, the processes need to be not just faster but fundamentally different.
The US and British defence industries are accustomed to a waterfall process, in which development progresses slowly ‘from requirements definition through to testing, deployment, and field use.’ The process is linear and often irreversible. ‘Information flows in one direction only, regardless of the downstream consequences for the system …’. What is needed, instead, is ‘an iterative fashion where requirements and design solutions can evolve as the technology is developed.’
Take drone technology, for example. In recent research, the Royal United Services Institute’s Justin Bronk and Jack Watling outline findings that Ukraine’s drone industry is constantly tweaking designs, adapting to a fiercely competitive battlefield. Everything from sensors, radios, software and weapons are getting updated every six to 12 weeks, they find.
At Land Forces, Anduril, a disrupting entrant to the US defence industry, demonstrated an understanding of current defence technology challenges: ‘It’s not about getting the tech faster to the warfighter. It’s about getting tech that can evolve,’ stated a spokesman, retired Lieutenant General Neil Thurgood.
Each Pillar 2 technology will require integrating systems of systems. Countering drones can require seamless integration of well over a dozen technologies, which react faster than a human can. The primes, however, continue to try and capture sole source vendor contracts.
While Australia doesn’t have the established defence primes the US and Britain have, it also doesn’t have their bad habits. And Pillar 2 technologies aren’t solely for the benefit of defence, with plenty of opportunity for dual use. Dean Rosenfield, the chief executive of defence-focused engineering company Nova, cites the example of Australia’s mining and farming industries. ‘Australia should be an autonomous systems superpower,’ he says.
Sixty years ago in The Lucky Country, Donald Horne was pessimistic about his compatriots. ‘Australia has not been a country of great innovation or originality,’ he wrote. ‘It has exploited the innovations and originality of others and much of its boasting is that of a parasite’. Half a century later, it is the US and British defence industries that have shown a persistent lack of cleverness. Pillar 2 represents an unmatched opportunity for Australia’s firms, if they wish to take it.
