The Challenge for SMEs in Defence
Australia’s defence budget is seemingly bigger than ever, but small and medium-sized businesses are finding it harder to break in. While large contractors continue to win major projects, SME participation has dropped from 10% in the 1990s to just 3% today.
For businesses in the Hunter region, the issue isn’t capability – it’s visibility and access. Defence contracts are highly competitive, procurement cycles are long, and navigating the industry can be overwhelming. As Bret Barton, Deputy Chair, Hunter Defence put it, “When the primes aren’t fed, the SMEs starve.”
With so much uncertainty in global defence spending, now is the time for SMEs to sharpen their strategy. That’s where this new white paper from The Measured Marketer comes in.
What’s in the White Paper
This report, Navigating Defence Opportunities: A Strategic Guide for Hunter SMEs in 2025, looks at the latest trends in defence contracting and provides practical steps for businesses wanting to get a foothold in the industry. It covers:
- Analysis of the latest Australian Defence Magazine (ADM) Top 40 Defence Contractors and Top 20 SMEs rankings
- The impact of global shifts, including changes in US policy and the push for sovereign capability
- The reality of SME participation in defence and why so many small businesses are struggling to win work
- Key areas where opportunities exist, including sustainment, cybersecurity, and AI-driven defence technology
- The growing role of exports and the impact of recent trade agreements under AUKUS
There’s also a section on marketing and positioning strategies, which is often overlooked but can make a big difference in how SMEs are perceived by primes and government buyers.
What SMEs Can Do Now
The white paper includes a practical action plan for SMEs looking to secure defence work. Some of the key takeaways include:
- Building relationships with Hunter Defence, HunterNet, and Tier 1 and 2 contractors
- Strengthening digital presence, including LinkedIn and capability statements
- Securing key accreditations like DISP and ISO 9001 to improve eligibility for contracts
- Exploring funding opportunities such as Sovereign Industrial Capability Grants and Defence Innovation Hub funding
The next 12 to 18 months will be critical for SMEs wanting to position themselves in the defence sector. As larger contractors lock in their supply chains, smaller businesses that aren’t proactive now risk missing out on upcoming opportunities.
Download the White Paper
Hunter Defence is supporting this initiative, and we encourage businesses to take advantage of the insights provided.
For more information, connect with Hunter Defence and The Measured Marketer to learn how to get started in defence.
