Solutions for Australia to maximise the $124bn industry
The Manufacturing Industry Skills Alliance, together with the Job and Skills Council, has released the 2024 Manufacturing Workforce Plan, highlighting the numerous opportunities the multi-billion-dollar sector presents to jobseekers and the country.
The plan is a roadmap outlining the key skills and emerging workforce needs for the industry. With projected employment growth indicating a likely increase in employment equivalent to around 120,000 additional workers (16.8%) by the year 2033, the plan is designed to turn challenges into solutions and begin to build the capacity of the manufacturing workforce in Australia.
It highlights sectors with the greatest opportunities for growth, development and expansion including the defence, clean energy, medical and space sectors, and the urgent need for skilled workers.
Australia’s highly diverse manufacturing industry, which encapsulates everything from food manufacturing to machinery, metals to transport and robotic engineering, is the fifth largest industry in Australia and contributed $124bn to the economy in the 2021-2202 FY, according to the Manufacturing Alliance.
Sharon Robertson, CEO of Manufacturing Alliance, said that most people’s understanding of manufacturing is that it is dying out in Australia, when in fact the exact opposite is true.
“As Australia’s fifth largest industry and growing, manufacturing plays a key role in the economy. Given the projected industry growth, we want to ensure that the manufacturing industry can access workers with the skills needed to shape an innovative future in Australia.
“We are committed to delivering tangible solutions that address the skills and workforce challenges faced by the manufacturing industry. By focusing on practical, actionable strategies we are building priority actions that can offer solutions to supply side skill shortages.
“The 2024 Workforce Plan is a positive step forward in addressing the workforce skills shortages in Australia’s manufacturing industry. Our aim is to not only fill the existing gaps but to build a resilient and skilled workforce that can drive the industry forward,” she said.
Four key challenges in the industry
With approximately 875,000 workers, the industry is facing four key challenges identified in the Workforce plan:
Attracting and increasing the pipeline of apprentices: This occurs due to a misunderstanding or lack of awareness of the exciting careers in manufacturing.
Ageing workforce: An aging workforce of specialised trades/technicians creates a ‘skills retirement cliff’ if skills are not transferred or retention strategies like job transfer or redesign are not implemented.
Lack of diversity: Lack of diversity suggests the need to better incorporate women, First Nations Australians, CALD communities, and individuals with disability within the workforce to address labour force pressures.
Emerging skills, opportunities and industries: There is a need for broader and more consistent skills development that meets the demand for emerging industries throughout careers (informal and formal).
The plan outlines occupations such as mechanical engineering technicians, bakers, and pastry cooks as a focus area for retention and training. All other sectors, including plastics and rubber machine operations, boat building, and metal trades, are also set to benefit from targeted actions to enhance skills and productivity and ensure the availability of a skilled workforce.
The manufacturing industry is committed to fostering diversity, aiming to integrate underrepresented groups such as women, First Nations people and individuals with disability into the workforce. Embracing technological advancements, the industry is set to equip its workforce with new and emerging skills, positioning itself for future success.
Strategic solutions to meet challenges
The 2024 Manufacturing Workforce Plan presents innovative solutions to drive the industry forward. Campaigns to engage schools, community groups, and employers will highlight the variety of rewarding career opportunities in manufacturing, with a view to increasing the pipeline of apprentices and new talent.
The plan also emphasises the importance of retaining the expertise of older workers through flexible work arrangements and knowledge transfer programs. Initiatives to support succession planning and mentoring will ensure that critical skills are passed on to the next generation.
The solutions include attracting underrepresented groups by creating supportive networks, leadership training, and optimising work environments to make manufacturing more inclusive. A best practice toolkit will highlight successful strategies and case studies, facilitating the sharing of innovative approaches and continuous learning.
“The 2024 Manufacturing Workforce Plan is the result of extensive consultation with employers, industry experts, training organisations and unions, ensuring that the solutions we propose are well-informed and supported. By incorporating diverse perspectives and expertise, we have created a comprehensive roadmap for workforce skills development that seeks to meet the industry’s needs,” explains Robertson.