Localising northern supply chains will strengthen national resilience

Coming off the back of a successful NT Defence Week, one thing is clearer than ever: the Northern Territory is not just a remote outpost—it is an asset central to our national security, economic resilience and future-focused industry growth.

Today, supply chain disruptions are a daily reality, not just a possibility. As we face growing threats—from international conflicts and climate change, to pandemics and trade tensions—the need for robust, sovereign and localised supply chains has never been more urgent. For northern Australia, this is both a challenge and enormous opportunity.

Yet the federal government continues to invest billions into defence and infrastructure projects that bypass local capabilities. Southern suppliers, multinational contracts, and offshore interests dominate the procurement pipelines, while NT businesses, including Indigenous-led enterprises, are left fighting for scraps.

The NT’s proximity to Australia’s northern neighbours, its access to critical infrastructure, and its vast natural resources position it well to support the growth of Australia’s sovereign manufacturing capability. To capitalise on this, we must shift our focus from just doing business to building long-term capability through investment, innovation and people.

Local procurement is key. Too often, large-scale projects and defence contracts rely heavily on southern suppliers, missing the chance to engage the talent, industry knowledge and entrepreneurial spirit that exists right here in the NT. When we invest in local businesses—from advanced manufacturers and logistics providers to Indigenous-owned contractors and regional suppliers—we’re not just supporting the economy; we’re reinforcing a resilient, adaptable supply chain that can meet Australia’s evolving needs.

The NT is already leading the way. Defence NT is pushing for greater inclusion. The Industry Capability Network NT is turning capability into contracts. The NT branch of the Australian Industry and Defence Network is amplifying small and medium enterprises, while the Chamber of Commerce and Australian Industry Group are connecting the dots between policy and practice.

But they need backup, not just applause.

The future of Australia’s sovereign capability cannot be achieved without inclusive, ethical, and place-based supply chains that empower local enterprise and honour our regional strengths. But infrastructure is only half the story.

The other half is our people, and particularly our young people. The territory has a rising generation of curious, capable minds who should be given every opportunity to step into careers in science and technology. From defence innovation and engineering to cyber security and space tech, the demand for territory-grown talent is real—but so is the supply gap.

We need to invest early in our schools, training providers and hands-on programs that show young Territorians what’s possible. We must centre Indigenous youth in these efforts, recognising the importance of cultural knowledge, land stewardship, and the unique perspectives they bring to innovation and sustainability.

We also need visible leadership and role models who reflect the diversity of the NT, demonstrating that success in defence, technology and manufacturing is not only possible, but powerful.

A radical reset is necessary, and possible. But changes must be made.

The government should mandate local content quotas in all federally funded projects, especially those in defence, infrastructure and energy. This should be a requirement, not a recommendation: if it’s built here, it should be sourced here.

As well as this, decision-making must be decentralised. We need to move procurement officers, investment leads and project managers into the north, so they can see what local businesses can deliver instead of relying on spreadsheets from city offices thousands of kilometres away.

Too often, the same names keep winning contracts because of outdated systems and risk-averse thinking. We must dismantle this trusted supplier monopoly and improve  transparency and equity. This will require an overhaul of how supplier capability is assessed, ensuring it factors in cultural knowledge, community benefit and regional resilience—not just bottom-line cost.

Finally, we must invest in NT-owned manufacturing. If we’re serious about sovereignty, we need to fund regional manufacturing hubs. Let’s build the infrastructure for Australia’s future here in the north, with equity at its core.

The NT is not on the edge of the map, it’s on the frontline of opportunity. It we get this right, we won’t just build a stronger supply chain; we’ll build a stronger nation.