Australian manufacturing’s ‘Future Made’ opportunity

RSM Australia’s Louis Quintal, explains how the Federal Government’s ‘Future Made in Australia’ initiative could spark a resurgence in local manufacturing.

The manufacturing sector has been a cornerstone of the nation's economic development, shaping our cities, creating employment opportunities, and fostering innovation. However, in the face of globalisation, technological advancements, and recent economic disruptions, the industry has faced challenges. Yet, with the Federal Government's Future Made in Australia funding initiative, there lies immense potential for a renaissance in this vital sector.

The historical context of Australian manufacturing

Manufacturing in Australia has evolved over the decades, from early industrial activities such as milling and shipbuilding to the complex, diversified sector we see today. Post-World War II, Australia experienced a manufacturing boom, driven by the need to rebuild and modernise the nation. This period saw the rise of industries such as automotive, textiles, and electronics, which provided robust employment and contributed significantly to the GDP.

However, the latter part of the 20th century brought about a shift. The advent of globalisation resulted in manufacturing offshoring to countries with lower labour costs. Australia, like many other developed nations, saw a decline in its manufacturing base, leading to concerns about the sector's future viability.

The current manufacturing landscape

Today, Australian manufacturing is characterised by a mix of traditional industries and emerging sectors. While we still maintain strong capabilities in areas such as food and beverage production, machinery, and chemicals, there is a growing emphasis on advanced manufacturing, which integrates cutting-edge technologies like robotics, artificial intelligence, and 3D printing.

The COVID-19 pandemic underscored the importance of local manufacturing. Supply chain disruptions highlighted the vulnerabilities of over-reliance on international suppliers. This realisation has spurred a renewed focus on bolstering domestic manufacturing capabilities to ensure national resilience and security.

The Federal Government's role in ‘Future Made in Australia’ funding

In response to these challenges and opportunities, the Federal Government launched the Future Made in Australia funding initiative. This program aims to rejuvenate the manufacturing sector by providing financial support to businesses that invest in advanced manufacturing technologies, research and development, and workforce skills enhancement.

The funding also emphasises sustainability, encouraging manufacturers to adopt environmentally friendly practices and develop green technologies. By doing so, the initiative aligns with global trends towards sustainability and positions Australian manufacturers at the forefront of the green economy. 

Some of the key components of the funding initiative include:

• Investment in advanced manufacturing: The program allocates resources to support businesses in adopting advanced manufacturing technologies. This includes grants for purchasing new equipment, implementing automation, and integrating digital solutions.
• Research and development [R&D]: Recognising the critical role of innovation, the funding provides incentives for companies to invest in R&D. This fosters the development of new products, processes, and technologies that can enhance competitiveness and open new markets.
• Workforce development: A skilled workforce is essential for the success of advanced manufacturing. The initiative includes training programs and partnerships with educational institutions to ensure that workers have the necessary skills to thrive in a modern manufacturing environment.
• Sustainability and green manufacturing: To promote environmental stewardship, the funding encourages manufacturers to adopt sustainable practices. This includes energy-efficient technologies, waste reduction initiatives, and the development of green products.

With the infusion of this funding, the short-term potential of the manufacturing sector is promising. RSM Australia believe that we can expect growth and development in some key areas.

Reshoring and strengthening supply chains

One of the immediate impacts of the funding is the potential for reshoring manufacturing activities. By providing financial support to local businesses, the initiative makes it more feasible for companies to produce goods domestically rather than relying on international suppliers. This not only reduces supply chain risks but also creates local jobs and stimulates economic activity.

Advancements in technology

The focus on advanced manufacturing technologies will drive innovation across the sector. Companies that embrace automation, AI, and other digital solutions can enhance productivity, reduce costs, and improve product quality. These advancements will enable Australian manufacturers to compete more effectively on the global stage.

Sustainability and green manufacturing

As the world shifts towards sustainability, Australian manufacturers can lead the way in green manufacturing. The funding's emphasis on environmental practices will help businesses reduce their carbon footprint, develop eco-friendly products, and tap into the growing market for sustainable goods. This not only benefits the environment but also enhances the reputation and marketability of Australian products.

Creating high-value jobs

Investment in workforce development is crucial for the sector's growth. By equipping workers with the skills needed for advanced manufacturing, the initiative ensures that the industry can access a pool of talented individuals. This, in turn, creates high-value jobs that offer better wages and career prospects, contributing to overall economic well-being.

Fostering collaboration and innovation

The funding encourages collaboration between businesses, research institutions, and government agencies. This collaborative approach fosters innovation by pooling resources and expertise. It also helps bridge the gap between research and commercialisation, ensuring that new technologies and products reach the market faster.

Future Made in Australia funding represents a pivotal moment for the Australian manufacturing sector. By addressing the challenges of globalisation, technological disruption, and sustainability, the initiative lays the foundation for a resilient, competitive, and innovative industry.

With the right support and strategic direction, Australian manufacturing can not only reclaim its historical significance but also forge a path towards a prosperous and sustainable future. Let us embrace this opportunity and build a manufacturing landscape that is truly Future Made in Australia.

At RSM Australia we can play a pivotal role in supporting the manufacturing sector under the Future Made in Australia initiative by offering advisory services tailored to enhance operational performance, investment strategies, and risk management. Leveraging our deep industry knowledge and global resources, RSM can assist manufacturers in navigating regulatory compliance, optimising supply chains, and implementing innovative technologies to boost productivity and competitiveness. Additionally, RSM's expertise in strategic consulting and financial management can help manufacturers secure funding, expand into new markets, and achieve sustainable growth.
 

FOR MORE INFORMATION

If you would like to learn more about the topics discussed in this article, please contact your local RSM office.