From the Ministry – Testing the resilience of our manufacturers

New technologies and methods of production are shifting the focus from mass production to more bespoke, advanced, and higher value-added manufacturing. Design and associated service delivery are now as important as the production process itself.

The Government’s vision is for Australia to be recognised as a high-quality, skilled and sustainable manufacturing nation that supports a modern and resilient economy.

The ability to make things here, and do it well, will drive investment and innovation, grow our exports and create new jobs, including critical high-skilled jobs.

The lessons learnt from the COVID-19 pandemic have provided a powerful impetus to increase our self-sufficiency in key sectors, including vaccine production and defence.

The pandemic has presented a number of big challenges which our manufacturers have overcome with ingenuity and agility. Many Australian industries have rapidly embraced digital solutions to continue operating.

But just when the worst of the crisis seemed to be passing, the Omicron variant has put severe strains upon workforces and supply chains.

It is yet another test of the resilience of our manufacturers but they can be assured of the Government’s ongoing support as we deal with this crisis.

We are working hard to keep energy costs down for industry, cut red tape and generally create a positive business environment.

Since the announcement of the $1.5bn Modern Manufacturing Strategy in October 2020, the Government has been supporting Australian manufacturers to scale up, innovate and access new markets.

As at 15 December 2021, the Strategy has delivered over $309m to fund 176 Australian manufacturing projects across the National Manufacturing Priorities of Space; Medical Products; Resources Technology and Critical Minerals Processing; Food and Beverage; Defence and Recycling and Clean Energy.

Combined, these projects are valued at $906m which will drive new manufacturing activity, investment and create jobs.

Successful recipients include Noumed Pharmaceuticals which was awarded $20m towards construction of a new $85m state-of-the-art manufacturing facility for prescription and over-the-counter medications.

Sabrini Foods was awarded $1.4m in funding to become the first local manufacturer to transform Australian dairy into extended shelf-life frozen paneer, overcoming one of the constraints to export.

Victorian-based Pact Group was awarded $20m to support its world-leading recycling technology. This investment will help create more than 900 jobs and divert around 125,000 tonnes of plastic waste from landfill each year.

Significant investment also been provided to the defence sector to help access new local and global defence supply chains.

A capable and advanced defence industry is vital to our national security and our response to natural disasters and other emergencies.

The development of domestic defence industries will not only strengthen our protection against external threats, it will lead to innovations in other industrial areas.

Our commitment to this sector included a $16.2m grant to Hofmann Engineering in December last year. It is a family-owned company based in Western Australia. The funds will help the company establish its advanced sovereign defence manufacturing centre and training facility for apprentices and graduates.

On 30 June 2021, the Government launched both the MMI Collaboration Stream and the Supply Chain Resilience Initiative.

The Collaboration stream is the largest component of the MMI with $800m available to provide co-funding of up to one third of eligible project costs – supporting large-scale projects that will help transform manufacturing sector by increasing collaboration, and building scale to enhance growth and competitiveness in the six National Manufacturing Priority areas.

The $107.2m Supply Chain Resilience Initiative will strengthen Australia’s ability to access critical products and inputs, better positioning us to respond to future supply chain disruptions.

Under Round one of the Supply Chain Resilience Initiative, 26 projects in medicines and agricultural production chemicals will share in $33m of funding. This includes backing Australia’s only local manufacturing site for critical intravenous (IV) medical fluids, Baxter Healthcare. The company will receive up to $2m to support the manufacture of more than 50 million units of life-saving IV medicines used in the ICU, emergency rooms, operating theatres and oncology wards around the country.

Round 2 of the Supply Chain Resilience Initiative opened on 6 December last year and will support the critical areas of semi-conductors and water treatment chemicals.

Under Round 2 of the Manufacturing Modernisation Fund (MMF) announced in June 2021, 84 businesses across the country were awarded $55m for projects with a total value of $254m. The MMF supports small to medium manufacturing businesses to innovate, develop new technologies and create new high-skilled jobs. This builds on the outcomes of the first round, which provided over $40m to support 172 projects.

We are also supporting Australian small to medium manufacturers to commercialise new innovative products and processes through the $30m Commercialisation Fund, administered by the Advanced Manufacturing Growth Centre.

We will continue to work closely with industry to position Australia as a globally recognised, high-quality, competitive and sustainable manufacturing nation.

COVID-19 has highlighted the importance of strengthening our sovereign manufacturing capabilities and securing reliable supply chains. The Government is providing the framework to enable this. Our policies and targeted investments are helping ensure Australia’s essential needs continue to be met. They are also supporting our manufacturers to innovate, adapt and grow. Our manufacturers are leading the way, transforming the economy and putting Australia at the forefront of modern manufacturing nations.