A First Nations business based in Townsville has become the first Australian manufacturer to supply vehicles to the Australian Defence Force.
Australian Engineering Professionals (AEP), which has just 30 staff, delivered four militarised patrol vehicles to Defence last month.
The only other Defence Force vehicle manufactured in Australia — the Bushmaster — is made by French company Thales in Bendigo, while other vehicles are produced by foreign OEMs (original equipment manufacturers).
AEP Managing Director Michael McMillan, a former veteran with a 30-year military career, said the significance of the deal to deliver the deployable light reconnaissance vehicles was huge.
“This is a capability that is completely designed, developed and tested within Australia,” he said.
“Everything on that vehicle, apart from the engine and a few other components, has been manufactured in Australia, utilising an Australian workforce, Australian materials and put together by Australian workers. It’s a sovereign capability.”
Crucially, the IP (intellectual property) is owned by AEP and therefore Australian.
“The ability to use IP for the benefit of strategic outcomes for Australia is significant,” Mr McMillan, pictured, said.
“It means permission doesn’t have to be sought from overseas entities.
“All the other OEMs are overseas entities: Thales is French, Mercedes Benz is German and BAE is British. That means the IP for those vehicles is owned by an offshore entity whose priority at a given point in time may not be Australia.”
Obtaining a Defence contract is a remarkable achievement for an SME, given how slowly the wheels of bureaucracy turn, said Mr McMillan, who worked in defence before starting his own business focusing on capability delivery.
AEP, whose workforce comprises military veterans, First Nations employees and James Cook University engineering students and graduates, had applied for and received a Sovereign Industrial Capability Priority Grant to initially deliver two of the patrol vehicles to Defence and was chuffed when the order was doubled.
Mr McMillan credited his military experience for being able to identify the capability gap.
“Defence is a difficult customer because the decision-making process is so long,” he added.
“SMEs can’t usually work in that space because you’d go broke waiting for things to happen. They need to be agile and have the ability to make a decision, move quickly, develop and move forward.
“That’s what helped us get into this space so quickly from where we started. We were able to do all the development work, design activity, certification and compliance under our business outcome but in a much faster timeframe than Defence could have supported.”
Based on a Landcruiser chassis, the patrol vehicles are suited for Australian and Pacific conditions and are undergoing testing for ‘technical readiness level 8’ — “not in a real fighting environment . . . but the level just under it”.
“These are mature, commercial prototypes,” Mr McMillan said.
“They are not first-off editions; they have been tested in other environments. The user trial is purely to ensure we meet criteria.”
Mr McMillan hopes Supply Nation-certified AEP will eventually deliver more vehicles to Defence.
“The intent is to do it on this level and capability and utulise the lessons learnt to ensure that if there were a follow-on order, we could do more,” he said.
“We’re not at the scale or level yet, but we’re proud of where we are at.
“We’re regional-based, veteran and Indigenous-owned, developing, manufacturing and delivering sovereign capability.
“If Defence is your target, it’s a patience game. You need the ability to understand bureaucracy. Have a plan and get in early.”
Australian Engineering Professionals have been a member of Ai Group since August, 2022.
“Ai Group gives me confidence that my business is supported and our voice is heard. The support and information we receive is of great value to me in my planning and future decision-making." — Michael McMillan, Managing Director, Australian Engineering Professionals
Wendy Larter is Communications Manager at the Australian Industry Group. She has more than 20 years’ experience as a reporter, features writer, contributor and sub-editor for newspapers and magazines including The Courier-Mail in Brisbane and Metro, the News of the World, The Times and Elle in the UK.
