RSM Australia is helping small and medium manufacturers navigate the barriers, requirements and opportunities of the defence supply chain.
Australia’s defence manufacturing landscape is fluid, with opportunities and challenges for businesses of all sizes. For RSM Australia, an Australian professional services firm, supporting small and medium manufacturers to navigate the complex demands of the defence supply chain has become a core focus.
From its Rockingham office, RSM is positioned in the heart of Western Australia’s defence and heavy industry hub. Located close to HMAS Stirling, the Henderson Precinct, and Kwinana’s heavy industrial zone – as well as the state’s future main port – the firm has built a dedicated defence advisory team that helps local businesses seize new opportunities.
Tom Hüberli, partner in RSM’s Rockingham Business Advisory division, has been instrumental in developing this focus. When he transitioned into the role in 2021, he looked at the economy surrounding Rockingham and recognised defence as a key driver. Garden Island, home to HMAS Stirling, looms large on the horizon, while nearby Henderson is the state’s premier defence industry location. Around the same time, the announcement of the AUKUS trilateral partnership reinforced his view of the sector’s long-term significance.
Since then, RSM Australia has expanded from a small starting point to a 30-strong national defence advisory team. The firm’s service model spans four categories: risk and assurance, R&D tax and grants, corporate finance, and business advisory.
Risk and assurance cover areas like cyber security, financial audit, ESG compliance, contract management and fraud forensics. R&D tax and grants are crucial for innovative businesses developing and testing new solutions, while corporate finance supports mergers, acquisitions, valuations and transaction advisory. Finally, the business advisory stream – which Hüberli leads – offers structuring, tax management, reporting, and factory floor financial decision-making support.
“Our role with local manufacturing businesses is to help them know and understand their numbers for real-time influence on decision-making,” Hüberli said. “We also look after their compliance needs so they can focus on their business more. The key is that we act as connectors and identify where clients need help from other services or support.”
Barriers, compliance and the speed of delivery
One of the first questions Hüberli faced when developing this branch of RSM Australia was whether defence warranted treatment as a distinct subsector of manufacturing. He concluded that it did, citing three defining challenges: barriers to entry, ongoing regulation, and the pace required to meet demand.
Despite government efforts, entry into the defence supply chain remains highly competitive. Businesses must first identify a gap or demand, then demonstrate capability. Certifications and documentation such as a Defence Industry Security Programme (DISP) accreditation and a quad chart summarising competitive advantages and qualifications also help the process.
“Government bodies are not shy in telling you if you don’t meet the criteria – you can be chopped out very quickly if you can’t offer anything,” said Hüberli. “It also helps immensely to have strong industry connections. It’s not so much about who you know, but knowing the right government departments and networking groups can really help.”
Once in, manufacturers must keep pace with evolving regulations, certifications, and compliance requirements. Defence’s heightened public profile makes it critical for companies to operate with transparency and professionalism, while poor governance or financial instability can quickly damage opportunities.
The third challenge is speed. Following the 2023 Defence Strategic Review, the government acknowledged capability gaps amid strained international relations and rapid technological change. That has created pressure for prime contractors to work more closely with smaller, agile businesses to deliver results.
“We’ve had examples of businesses being asked to ramp up production significantly to the point where it’s life-changing,” Hüberli said.
RSM can support those providers struggling with these requirements by offering guidance across critical areas such as connections, certification, funding options, business structure and risk management, and ensuring their operations and systems are secure and sustainable. According to Hüberli, the firm emphasises that building capability quickly requires more than short-term fixes or one-off grants – it depends on both business and government embracing innovation with genuine investment and long-term strategy.
Managing risk and requirements through financial literacy
Hüberli said financial literacy is an essential foundation for SMEs seeking entry into the defence supply chain. He argued that robust monitoring and visibility of financial indicators such as margins, cash flow, and return on investment form the backbone of sustainable operations. Without high-quality, timely factory-floor data, he said decision-making is compromised.
“In defence manufacturing, where precision, compliance and cost efficiency are paramount, financial soundness must be achieved alongside complimentary services like R&D or ESG,” he said. “Manufacturers need clear visibility into profit margins, productivity trends, interest cover ratios, inventory movements, and utilisation versus capacity.”
RSM Australia also helps manufacturers meet strict compliance and reporting obligations by guiding them through defence readiness assessments and supporting them in addressing capability gaps. The firm has supported clients with R&D tax incentive applications and defence industry development grants, the latter potentially being worth up to $1 million, while also restructuring businesses and mitigating capital gains or stamp duty impacts.
Risk management – particularly cyber security – is another growing priority. DISP certification is widely recognised as base-level security for defence supply chain participants, though processing backlogs mean many SMEs face frustrating delays.
“It’s not a simple process to navigate yourself, and it’s often better to get help to do it right. Beyond DISP, we assist clients with higher-level certifications in cyber and process security, which demonstrate readiness for larger contracts too,” Hüberli said.
Because many defence projects span years, RSM also focuses on helping businesses prepare for long-term sustainability through consistently processed data and sound reporting platforms. This includes guiding cash flow management, planning for plant replacement or refurbishment, managing provision accounts, and building investor readiness. According to Hüberli, this can be as simple as not buying an item of plant from cash surplus but instead seeking finance, or as complex as keeping an eye on three-way budgets to prepare for increased scale or seeking an investor.
“There’s a saying that suggests we should live for today, and that’s fine, but in business we also have to plan for tomorrow,” Hüberli said.
Local presence, national reach
Rockingham’s position as a hub for defence-related activity gives RSM a unique vantage point. With a national network of 32 offices – including 19 in WA – the firm can blend local business advisory expertise with access to specialised services such as cyber security, R&D, grants, and corporate finance.
“The geographic spread of our offices allows a smaller metro-based office like Rockingham to pull in specialist services and become more than just advisors – we’re conduits to other services and networks,” Hüberli explained. “We’re building a one-stop shop for defence across funding, tax, compliance, assurance and risk.”
The collaborative nature of the sector is also a strength. Defence networking events bring together SMEs, government, primes, advisors and industry bodies in a way that fosters genuine partnerships. Hüberli believes RSM is ahead of the curve in providing coordinated national services tailored to defence.
“Defence is probably one of the most collaborative environments out there. Industry meets government meets advisory, and together they’ve got a great opportunity to build something special – something that supports national security and the sovereignty of Australia,” he said.
As RSM continues to expand its role in this space, Hüberli remains optimistic. The work may be complex, but its impact is profound – shaping industries, strengthening communities, and ultimately helping secure the nation.
