The Review is biggest adjustment of Australia's defence in decades

Jeffrey Hawkins said even though the review recommended the scaling down of two key army contracts that Tasmanian companies were heavily involved in, it also recommended expansion in other areas that created "good opportunities" for small and medium-sized businesses in the state.

A number of Tasmanian companies, including CBG Systems, Penguin Composites and Elphinstone, were involved with the tender by Korean group Hanwha to supply 450 infantry vehicles and 60 artillery systems to the Army.

But the review recommended scaling back the number of infantry fighting vehicles by two-thirds, and scrapping the second phase of the artillery contract entirely, cutting its value in half.

The report instead recommended an expansion and speeding up of the Army's purchase of landing craft.

Even though the craft are to be built in Western Australia, Tasmanian companies may still benefit given the state's history of success in construction of smaller boats, according to Mr Hawkins.

Mr Hawkins also said it was significant that the Defence Department report had brought forward the threat horizon, meaning they required more equipment sooner.

"I think Australian sovereign [manufacturing] capability will become more important ... if something can be built in Australia, it's going to be at a big advantage [in procurement terms], he said.

With the landing craft being built in Western Australia, the Army might look more favourably on parts being supplied from other areas of the country so as to not have such a high reliance on Western Australia and South Australia, he said.

"I think it's an opportunity for us to go an say, if you're going to build everything in Western Australia and South Australia, you won't be able to do it as quickly. If you want to do them quicker, look at some of the regional areas," he said.

"We've got a company here - Haywards - who have very good capability to build for those landing craft," he said.

"If the Army are genuine about wanting things sooner and faster, then looking at states like Tasmania is going to offer an advantage," he said.

Mr Hawkins said he was also encouraged by the Defence Strategic Review's focus on expanding Australia's cyber defences, saying there were opportunities there for Tasmanian IT companies.

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