In recent years, Northern Australia has seen significant Defence investment, with major base upgrades, airfield works, accommodation precincts, logistics infrastructure, and force posture initiatives contributing $11.9 billion to its economy.
But according to Chris Giannikouris, General Manager of Construction at DCOH, the NT’s economic fertility should not be mistaken for accessibility, with local barriers to trade greater than many interstate contractors realise.
Chris – a third-generation Territorian with decades of experience in procuring Defence projects – claims NT businesses can be cautious about who they partner with, but says collaboration is possible with the right approach.
“Subcontractors in the Territory are often risk-averse when engaging with large corporates, given the potential impact on the local economy. It can be done, but it’s not as easy as some may assume. It’s a completely different approach when compared with like-for-like projects in Sydney or Melbourne, for example.”
Local knowledge is everything
When doing business in the NT, Chris says local knowledge matters, and that executives who understand “Territorian mentality” have an advantage.
“It’s a unique place. We have a small population, considering we’re about the same size as a single Sydney suburb. So, with that comes a different perspective in how we approach life and business,” Chris said.
Raised in Darwin and with long-standing ties to the construction industry, Chris knows this mentality well but says those who don’t should focus on building trust early.
“I grew up here. My father and grandfather were both builders from Darwin. So we understand that your word with trusted locals is just as tight as a contract.
“At DCOH, we have long-standing, established relationships with the local subcontractor base. We understand their capabilities, their constraints, and their capacity. We know how to package work in a way that aligns with what the market can realistically deliver.”
Navigating the supply chain
Local knowledge can also help contractors navigate the NT’s supply chain, which Chris describes as “fundamentally different” to that of other states.
“It is not simply a matter of mobilising resources and executing a program. It requires a deep understanding of remoteness, logistics, workforce limitations, and the realities of operating in a constrained environment,” he said.
Additionally, adverse weather from climate change can make the remote city of Darwin even more difficult to access and bring challenges that feel foreign to some interstate corporates.
“It’s difficult, but we’re used to the seasonal things that happen here. This year, we have had a big wet season. Access to whole communities, roads and rail have all been flooded. We are talking about solving a complex equation of balancing workforce, logistics, infrastructure, and long-term sustainability. Because not all contractors are positioned equally to operate in this environment.
“At DCOH, we have been operating in Darwin for nearly four decades. We are not a contractor that mobilises into the Territory for a project and demobilises when the work is complete. We are part of the Territory. Our business is built here. Our people live here. Our relationships are here.”
Navigating the labour market
With the NT’s Defence industry often outpacing its population growth, labour shortages are also a possibility. The 2023-24 financial year saw defence-related employment rise 9.1 percent to almost four times the national average, with 451 businesses engaged in defence-related construction.
However, Chris says the area’s liveability is a drawcard for interstate migrants.
‘’It’s a great place to live. Everything you need is within a 15 to 20 minute radius. And when you have a family, that’s unbeatable. You can knock off work and still make it to your kid’s sport match in the afternoon, which is a luxury you don’t often get in major cities.”
To support migration and the broader Territorian community, DCOH is developing schools, police stations, university facilities, residential subdivisions, and student accommodation, alongside its defence infrastructure portfolio.
“We provide the housing, education, and community infrastructure that allow families to relocate, settle, and stay in the Territory. Without this supporting infrastructure, workforce attraction and retention become significantly more difficult,” Chris said.
If you can make it in Darwin, you can make it anywhere
In spite of the challenges, Chris said companies should embrace trade in the Territory and claims that those who survive its harsher conditions often thrive elsewhere.
“Many local businesses view Darwin as a launchpad for growth. We have seen companies that began in the Northern Territory now delivering projects right across Australia,” he said.
Sharing more expertise on defence procurement in the NT, Chris and DCOH Chief Operating Officer Lachlan Michell will present at the upcoming ADM Northern Australia Defence Summit, hosted by Informa.
This year’s Defence Week events are held 27 April – 1 May at the Darwin Convention Centre.
Learn more and register your tickets here.