601. Make stuff here…or else: A framework for deciding what Australia must produce, repair or regenerate domestically
- Author:
- Steven Camilleri
- Publication Date:
- 06-2026
- Content Type:
- Special Report
- Institution:
- Australian Strategic Policy Institute (ASPI)
- Abstract:
- Australia’s prosperity rests on systems that appear permanent but depend on continuous, often unseen, inputs that arrive from beyond its borders. That model worked in an era of stable global trade, but recent shocks, from the Covid-19 pandemic to geopolitical disruption, have exposed a structural weakness. Australia must now shift from optimising for cost to securing continuity, and it must do so with urgency and discipline. This paper draws on public policy documents, industry case examples and published data to frame resilience as a practical national problem. This work is a follow-up to the 2025 ‘Make Stuff Here’—a blueprint to reinvigorate Australia’s economy. This report argues that national resilience is not an abstract policy ambition but a measurable engineering problem. At its core is the concept of the Sovereignty Countdown: the time a critical system can continue operating if external supply is disrupted. Every essential function—water, energy, fuel, food logistics, communications—operates within this constraint. When the countdown expires, continuity depends on external actors, and sovereignty narrows in practical terms. Australia currently operates within a dangerous lag. Policy has pivoted towards resilience, but physical capability hasn’t yet caught up. Decades of rational, efficiency-driven decisions have hollowed out the domestic production layer—the industrial ecosystem that repairs, replenishes and sustains national systems. In its place, Australia relies heavily on storage and logistics. Those extend time but don’t regenerate supply. When supply chains falter, the nation shift s from steady-state operation to drawing down finite reserves. The report introduces a clear framework: Production sustains systems. Systems deliver essentials. Weakness in the production layer creates cascading risk across the entire system. Case studies in water-treatment chemicals, liquid fuels and fertiliser demonstrate that vulnerabilities operate on different timelines, but all converge on the same strategic reality. Some failures emerge in days, others in months, but each reflects a countdown that can be measured, managed and extended. The central policy recommendation is the establishment of a National Resilience Test. Governments and critical-infrastructure operators must identify key inputs, quantify consumption rates and calculate how long systems can endure without external supply. These countdowns should be benchmarked against a defined National Survival Threshold, and gaps should be treated as formal strategic vulnerabilities requiring remediation. Closing those gaps requires a structured mix of interventions: targeted stockpiling, system redesign for substitution, and, critically, rebuilding domestic production capability where resupply timelines exceed available buffers. This doesn’t require autarky, as trusted, reliable and secure partnerships will continue to be a mandatory feature of Australia’s national resilience. As set out in the 2026 National Defence Strategy, strengthening self-reliance and sovereignty requires the combination of identifying which inputs must be sustained locally to preserve national continuity and the identification of key reliable international partnerships. Those must be free from coercion and available even in times of crisis. For policymakers and the private sector, the implication is clear. Resilience carries a cost, but so does unpriced exposure. Australia can either invest deliberately in sovereign capability now or accept constrained choices later. The task ahead is practical and achievable: measure endurance, define acceptable risk, and build the industrial depth needed to ensure that continuity rests on capability, not assumptions
- Topic:
- Manufacturing, Resilience, Supply Chains, and Research and Development
- Political Geography:
- Australia