Australian furniture makers operate in a competitive and evolving landscape. With sustainability expectations rising, local procurement priorities shifting, and new technologies reshaping production lines, finding new growth avenues is more important than ever. One often‑overlooked opportunity lies in diversifying into specialised sectors – including defence manufacturing – where Australian SMEs are increasingly being sought for strategic supply partnerships.

Recently, Dr Jens Goennemann, Managing Director of the Advanced Manufacturing Growth Centre (AMGC), shared insights with Australian manufacturers about how smaller companies can make meaningful inroads into the defence sector — and what it takes to succeed there. His message offers practical lessons that are equally valuable for furniture businesses looking to expand, collaborate or sharpen their competitive edge.

Start with the Problem Not Just the Product

One clear theme from the defence industry is that solutions matter more than technology alone. Defence primes and buyers look for products or services that solve real challenges – whether they make something stronger, lighter, faster, or more cost‑effective. This approach applies directly to furniture makers aiming to win larger commercial, public sector, or institutional contracts:

Focus first on understanding what the customer really needs – then shape your offering accordingly. Trying to fit a product into a sector without clear demand rarely gains traction.

For the furniture sector, this could mean adapting core capabilities — design excellence, craftsmanship and precision manufacturing — to solve specific client pain points such as ergonomic needs in healthcare, durable solutions for education settings, or customised interior fittings for government facilities.

Embrace Relationships and Long‑Term Engagement

Defence experts stress that selling into large and complex ecosystems is not a one‑off transaction but the start of a long‑term relationship with buyers and strategic partners.

For AFA members, this underscores the importance of building lasting relationships with key customers — whether they’re commercial fit‑out firms, educational procurement teams, health‑sector buyers, or sustainability‑driven retail brands. The ability to listen, adapt and respond becomes a key competitive advantage.

Build Dual‑Use Value and Broader Market Appeal

Many successful defence suppliers also design their technology or components for dual use, meaning they serve both defence and commercial markets. For furniture manufacturers, dual use is highly relevant. For example, modular seating systems built for workplaces could be adapted for emergency services facilities or aged‑care environments; sustainable materials developed for high‑end residential pieces could meet procurement specifications for public institutions.

This strategy, developing products that answer both everyday and specialised needs, helps buffer the unpredictability of any single market and expands opportunities for growth.

Invest in Readiness and Capability

Entering complex markets often requires firms to level up in areas such as quality systems, supply chain transparency, or compliance standards – something that furniture manufacturers are increasingly familiar with through sustainability and certification initiatives like the Furniture Passport Australia System and voluntary ecolabels.

Similarly, defence suppliers emphasise the importance of understanding customer language, timelines and expectations. Translating that lesson for furniture businesses means staying on top of trends such as smart manufacturing, procurement sustainability criteria, and digital supply‑chain tools – topics already front of mind in AFA’s strategy and training programs.

Why This Matters for AFA Members

The Australian furniture industry contributes billions to the economy and supports hundreds of thousands of jobs, with members deeply embedded across retail, contract, education, commercial and residential sectors.

Growing into adjacent opportunities enhances resilience, strengthens sovereign capability, and positions furniture makers as solutions providers in new contexts – not just producers of products. Whether pursuing government tenders with a sustainability lens or collaborating with large integrators for bespoke projects, the core lesson stands: understand your customer, differentiate your value, and build enduring partnerships.

Read the original AMGC newsletter here: https://www.amgc.org.au/newsletters/a-message-from-jens-goennemann-62/ (ADVANCED MANUFACTURING GROWTH CENTRE)