The new Labor government and PM Anthony Albanese have announced ambitious plans to reshore manufacturing in Australia through investment and various government-backed plans. But what does this mean for advancing modern manufacturing?
Maria Kinsella, CEO of the International Exhibition & Conference (IES) Group, and organiser of the upcoming Modern Manufacturing Expo in September, breaks down the manufacturing initiatives proposed by the new government, and gives more context on the resources available to help support this plan for advancement.
“It is essential that Australia be self-sufficient when it comes to manufacturing. The pandemic further proved the pitfall of relying on other countries to fill the gaps in our supply chain,” explains Kinsella.
“As organisers of some of the biggest and most influential industry-focused events in Australia, we regularly come into contact with smaller manufacturers who’ve made it clear that, while they would like to advance their manufacturing capabilities to become more competitive, they often don’t have the resources to do so.”
Recently, a 2020 Organisation for Economic Cooperation and Development (OECD) report tanked Australia as last in manufacturing self-sufficiency among the world’s largest developed economies, and 15th in the world for innovation inputs, but only 33rd for innovation outputs.
Kinsella believes that targeted government support for local manufacturing may be key to helping Australia catch up to the pace of the global economy.
She said that despite what the OECD ranking may imply, Australia is not lacking opportunities, nor the drive to implement a world-leading advanced manufacturing strategy.
“At our Modern Manufacturing Town Hall earlier this year, we saw some of the best and brightest names in the industry like Thales, the CSIRO, and the University of Sydney come together to brainstorm ideas, and share how their organisations are using technology to move local manufacturing into the future,” explained Kinsella.
“In NSW in particular, the collaboration between public, private sectors and academia has the potential to play a major role in the call to re-shore manufacturing. Similar collaborations in other states also exist.”
The new federal government has proposed a number of plans to deliver on the Prime Minister’s promise to “make Australia a country that makes things again”, which includes:
- Job creation projects: up to $15 billion of capital will be invested in job-creating projects through loans, equity and guarantees in key manufacturing sectors.
- Energy investments: Labor plans to allocate cheap and renewable energy resources where it’s needed to upgrade the country’s outdated energy grid, and power the technologies needed for a modern manufacturing strategy.
- Buy Australia plan: Prime Minister Albanese has promised to redirect government contracts away from international competitors to Australian businesses, and maximise the use of Australian-made products, goods and materials in future projects.
- Public transport production: more trains, trams and ferries will be manufactured locally.
- Defence industry development strategy: $270 billion of defence spending has been allocated for the next decade. By maximising local content, Labor has promised to create jobs and establish a local defence manufacturing sector.
- Local skills capabilities: to ensure that the skills needed to implement advanced manufacturing are available, the government will train thousands of additional workers to ensure that one in 10 workers on major government projects is an apprentice, trainee or cadet.
“We look forward to seeing the Labor government’s plans to advance manufacturing progress and put into action, and we will assist in whatever way we can,” Kinsella concluded.
The Modern Manufacturing Expo takes place from 20-21 September 2022 at the Sydney Showground, Sydney Olympic Park, Homebush.
It is designed for key decision-makers and management looking to explore the latest automation and digital offerings for future growth, and features a showcase of technology advancements to innovative operational practices for manufacturers.
