Winning government grants: A manufacturer’s guide to success

With Australia’s manufacturing sector under pressure, RSM Australia explores how strategic advice and well-prepared grant applications are helping manufacturers access critical funding for innovation, resilience and expansion.  

Australia’s manufacturing sector is at a critical juncture, but rising demand for sovereign capabilities and decarbonisation is creating strong opportunities for manufacturers to innovate and expand.

Government grant funding can be a powerful tool to help businesses seize this momentum, offering support for growth, modernisation and long-term resilience. While the funding landscape can be complex, those who navigate it successfully are unlocking advantages.

“There’s never really a bad time to act, but the manufacturing sector is in decline, and that needs to be addressed,” said Tim Linke, partner, Financial Modelling, RSM Australia.

“Government support is out there – businesses should be taking advantage of it to expand manufacturing lines rather than continue down the path of contraction.”

This view is shared by Rebecca Barnes, RSM’s director of National Grants, who believes targeted funding programs designed to build resilience in the sector have never been more important.

“We’ve seen international supply chains become less stable and geopolitical tensions increase, and all of that points to the need for stronger onshore manufacturing,” she said.

Navigating the funding landscape 

Australian State and Federal Governments collectively offer billions of dollars across thousands of grant programs. According to Barnes, the grants targeted at manufacturers have increasingly become focused on specific sub- sectors – specifically critical minerals processing, medical technologies, ag-tech, defence, transport, energy and renewables – rather than supporting traditional manufacturing more broadly.

A major trend in recent years has been the focus on decarbonisation. Grant funding is now frequently used to help high-emitting manufacturers reduce their environmental impact, while simultaneously supporting innovation in low-carbon technologies.

However, identifying the right grant opportunity is only the beginning. According to Barnes, a good grant application does more than tick eligibility boxes; it aligns with the strategic intent of the funding body and presents a clear, compelling case.

“It’s a minefield out there. The government offers thousands of programs and billions of dollars, but figuring out what’s relevant is incredibly difficult,” she said. “My full-time job is staying across the grants landscape, understanding the details of the eligibility criteria and the intent behind each funding body’s program.

“Even if you meet the eligibility criteria, that doesn’t always mean you’re likely to be competitive. It’s about knowing what kind of ribbon the funding body wants to cut.”

How RSM helps manufacturing industries find grants

To help manufacturers navigate this “minefield,” RSM has built a specialised grant advisory service that supports businesses through every stage of the process, from initial scoping to post-grant reporting and commercialisation. Rather than trying to navigate that minefield alone, manufacturers who are unsure can contact RSM, ask questions and get options and possibilities in return.

“This is a key service line that RSM has invested in and built specifically to support clients through the complexity of the grants landscape,” said Linke.

Strategic preparation is critical. Grants are rarely awarded retroactively, and businesses must demonstrate how the funding aligns with broader growth plans. Linke says that the correct process starts with having a clear plan and demonstrating how the grant will be used to support that plan.

RSM’s approach involves helping clients build robust business cases, develop financial forecasts, and use ‘what-if’ scenario modelling to understand the potential impact of grant funding.

“We help clients develop models and forecast tools to perform ‘what if’ analysis, essentially providing a crystal ball for potential outcomes,” said Linke. “This analysis helps them decide the right course of action based on current micro and macroeconomic conditions.”

To help address the rigorous and multifaceted grant application process, Barnes outlined a multi-step approach, starting with a realistic assessment of the implications of grant funding.

“It’s important to consider whether a grant works commercially for your business,” she said. “For example, if applying means you can’t start your project for another four months, is that delay going to harm your commercial interests?”

Next comes project definition, developing a win theme, preparing documentation – such as project plans, governance frameworks and financial modelling – and finally, lodgment. Very often, grant applications involve large numbers of stakeholders, contributors and deliverables which need to be coordinated to a hard deadline.

Barnes said that helping businesses achieve this level of preparedness is one of the qualities of a good grants consultant, but an excellent grants consultant “will be passionate about your success”.

“They will work and push and communicate and sacrifice as though your success were their own,” she said.

One example is a minerals processing company that approached RSM Australia with a decarbonisation project. Unsure of where to start, they relied on RSM to connect the project with the right funding stream.

“We set up a workshop to fully understand the project, the business and their trajectory, then mapped it against the funding landscape,” Barnes said. “Ultimately, we helped them secure more than $30 million for their decarbonisation project.”

Beyond the grant

Importantly, RSM’s support doesn’t end once the grant is approved. The firm views funding as part of a broader business growth lifecycle where grants, financial modelling, auditing and strategic advisory services work together to scale a company sustainably. All these elements support a growing business beyond just securing grant funding.

“The grant process is just one part of a broader business support system,” Linke said. “RSM has teams that can support a range of business requirements, including audit, business advisory, and preparing for potential M&A or divestments down the track.”

With interest rates expected to fall, Linke believes now is an opportune time to consider blending public and private capital to support growth initiatives.

“It’s probably a good time to be brave – to take advantage of both public and private funding opportunities and invest in growth,” he said.

Looking ahead, the pair believe manufacturers should keep an eye on key state and federal programmes such as the Industry Growth Programme, CRC Projects, the National Reconstruction Fund, Defence Industry Development Grants and ARENA’s suite of decarbonisation incentives.

“There are different categories of grants depending on what you’re looking to achieve, such as funding for new IP development or manufacturing expansion,” Barnes said. “When it comes to capital facility establishment, the National Reconstruction Fund is a key program – though it’s not a grant, but rather debt finance or investment.”

Critical capital for the future  

Government grants are not merely helpful add ons – for many businesses, they are enablers of future growth. In many cases, grants play a critical role in enabling businesses to take the next step. “At the highest level, grants can be a decision breaker on potential acquisitions or expansions – essentially the next evolution of the business,” said Linke.

With the right preparation, guidance, and strategic thinking, government grants can unlock transformational opportunities – and with RSM Australia’s support, manufacturers are increasingly turning this complex process into a powerful growth engine.  

This article was originally published in Manufacturers’ Monthly.