As we near the end of 2024, it’s a good time to pause and reflect. Reflect both on the events of the past year, as well as what we can expect as we move into 2025.
We asked our Contract Lead, Simon Blake, and Defence Director, Rob Kremer, to share their reflections.
What’s what in defence industry
Investment in Defence has slowed significantly post the 2022 Defence Strategic Review, but there are areas that remain busy. 2024 updates include:
The Surface Ship Review led to the announcement of SEA 3000, the new general-purpose frigate.
Announcement of a new Naval Strike Missile, with manufacturing happening in Newcastle.
Announcement of LAND 8710, a new landing craft for Army.
Investment in national intelligence, including REDSPICE, remains strong, and Defence remains committed to building offensive capabilities to counter long-term domestic and international threats.
Investment is focused on AUKUS Pillar 1, Hunter class frigates and GWEO (Guided Weapons Explosive Ordnance).
The satellite communication project JP 9102 has been cancelled and sustainment budgets are being reduced.
APS vs. subcontractors
Above the line, Defence has remained steadfast in its commitment to reduce the number of subcontractors and bring major decision making back into the APS.
DDG (formally CIOG) this year announced that they had achieved their target of re-balancing the subcontractor vs APS equation.
When subcontractors are used, there is pressure to do more with less, and quality is being scrutinised. The expectation is that milestones will still be hit without increased investment.
For PSPs (Professional Service Providers) and SMEs (Small and Medium Sized businesses) this has created a need to pursue work elsewhere, whether that’s below the line, in adjacent sectors or overseas.
2025… it’s an election year
During election years we generally experience a slow down with regards to hiring. Organisations tend to become more conservative in their approach to investment, and decisions can be delayed.
As defence industry has been relatively subdued to date, this might mean the impact is not felt as acutely.
It might also mean that more contract roles become available, as defence industry organisations use contractors to plug gaps and avoid making long-term hiring decisions.
Whatever the outcome of the election, the true impact won’t be felt until the latter half of 2025.
Our advice
Whether you’re looking for permanent or contract work in 2025, the two important things to bear in mind are patience and flexibility.
Whilst there is increased candidate availability, defence industry organisations are still struggling to find quality talent, particularly for specialist technical roles with security clearances.
Contract rates have steadied, and some career contractors are having to become more flexible to secure work.
Organisations continue to offer interesting EVP options for permanent workers, especially around flexible work/work from home, but we are seeing a shift to bring workforces back into the office.
Overall, for both permanent and contract work, be prepared for the process to take longer than you’re used to.
So there you have it, our wrap up of 2024 and a look ahead into next year. Thanks to Simon and Rob for their insights, and from all at Kinexus we wish you a safe and happy festive period.
Photo by Eyestetix Studio on Unsplash
