DroneShield’s manufacturing manager, Diego Koth, outlines how design, scale and quality will shape the future of Australian manufacturing.
In the early pages of Freedom’s Forge, Arthur Herman tells the story of how an industrial base sprang to life under pressure. The United States did not win World War II by building monolithic factories and hoping for miracles. It won because it implemented tried-and-tested manufacturing processes from the motor industry and was able to efficiently orchestrate a network where parts were machined by the thousands across third party supply chains. Components were delivered to a central production facility, and final assembly lines brought it all together with disciplined quality assurance. That model created speed and scale at the exact moment the country needed both. 80 years on and for many industries today, it is still a playbook for the future of manufacturing.
At DroneShield, we live that playbook every day. I have spent years of my life on shop floors and in engineering bays, from machining in Brazil where I started my career, to building robotic arms for underwater vehicles in Australia. The lessons that I bring to my role as manufacturing manager at DroneShield are simple. Speed and scalability are not accidents. They are the product of how you invest in design, how you organise, and how you can have confidence in what you deliver to customers.
Design for manufacturability and scale is a strategic choice
The first lever of all good manufacturing is design. When design is embedded in your company culture, this means that product innovation draws in not only user-experience, but also the development and manufacturing process. If components are engineered for repeatability, you can scale reliably. Our most complex systems however, where real manufacturing challenges lie, are built totally in-house. Our manufacturing team is highly skilled, with many members coming from very technical engineering backgrounds, enabling us to rapidly adapt to new processes, technologies and changes.
As components are manufactured by a network of trusted suppliers and contract manufacturers, volume can expand where it makes sense and expertise can be applied where it is critical. They are primarily local suppliers, allowing us to quickly jump in a car or take a short plane ride to solve issues in-person when needed.
At DroneShield, we aim to design products to be simple to build and easy to manufacture, allowing us to quickly scale production globally through contract manufacturers.
Scaling is an architectural problem
Manufacturing scale is rarely constrained by a single machine. When we moved into our in-house production facility in early 2024, our rapid growth meant we could foresee that space would quickly become a challenge. Because of this, we started the process to establish a new production facility. Fortunately, and as I write this in early 2026, DroneShield is moving its in-house production facility – still within Sydney – to a space that is triple in floor size.
This new space will considerably increase our in-house manufacturing capacity, giving us room to grow and take on more complex projects. My hope is that this will be a facility that acts like a manufacturing powerhouse, where production is efficient and technicians have what they need within reach. This means that beyond just size, we recognise the importance of the design from the ground up, from floor layout to the exact placement of power outlets, ensuring decisions made now lead to long-term optimised efficiency.
The supply chain side of scaling is equally important. Global electronics shortages, competition from high-growth sectors, and geopolitical volatility are of course daily realities. DroneShield has addressed this challenge with strategic and intentional partnering – primarily with Australian industry partners for our Australian-produced hardware. As we scale our manufacturing globally, we will look to replicate this model to harness local markets.
Quality is embedded, not a department
Products built to military specification (MILSPEC) have a unique burden. Failure is simply not an option. We build quality and compliance into every step, from design, to assembly, to testing.
At DroneShield, our engineers and production team work side-by-side, so on the rare occasion that an issue surfaces, we can quickly implement a fix. That discipline means defects do not become culture, and it lets you move at the speed of relevance – not requirement – without eroding standards. At a device level, we combine detailed manual checks with automated testing that runs consistently and fast. Nothing is packed onto the pallet in Sydney, without passing both.
When we work with our third-party suppliers to make sure every component meets our specifications, we perform rigorous incoming inspections before anything reaches our inventory. This integrated approach ensures every system we deliver is reliable, high-performing, and does exactly what our customers expect.
Australian sovereign capability because it is in our national interest
Naturally, when governments invest in or incentivise Australian companies to modernise equipment, scale up production, and upskill their workforce, you strengthen the network of local suppliers who are more able to compete for work, create jobs, and build companies willing to anchor design and production at home.
As an example, the Australian Government has committed tens of millions of dollars to the Defence Industry Development Grants, which directly support the growth of our national industrial base.
As the COVID period has shown, the importance of sovereign capability is about ensuring that we have what we need at home when there are competing external interests. Decisions, investments, and incentives by government now will have an impact on commercial decisions around where products are made, and there is an ongoing opportunity to ensure Australia is positioned as a serious player in next-generation defence manufacturing.
People are your greatest asset
At the end of the day, if I had to give one piece of advice to other manufacturers looking to compete in high-tech or military-related sectors, it is to invest in your people. The best machines and processes in the world will not save a production facility run by a disengaged workforce. Building a highly skilled, versatile, and empowered workforce is critical: provide comprehensive training, encourage hands-on learning, and create an environment where engineering, production, and quality teams can work and grow closely together.
But it’s not just about the people in your company, it’s also critical to think strategically about the people in your supply chains. By maintaining relationships with your trusted suppliers, you are cultivating a broader team who will be more prepared to manage risks in an unpredictable global market.
What does this mean, and what comes next
The future of manufacturing will favour companies that treat design and production as a single through-put, quality as a universal habit, and scale as an architectural problem.
It will favour companies with strong teams and strong networks of capable suppliers tied together by a clear mission: teams that learn fast, own outcomes, and can seamlessly pivot to meet the evolving challenge. And it will favour regions that invest in sovereign capability with long-term programs and real procurement opportunities.
Companies who embrace continuous improvement and innovation will come out on top. That is the essence of Freedom’s Forge remade for today.
Australia has the tools, the talent, and the template. Now we need the courage to execute.
