Five years ago, the Queensland Government announced the 10-year roadmap and action plan for advanced manufacturing. Since then it has continued to invest heavily in the sector. By Craig Barry of AMTIL corporate partner William Buck Chartered Accountants and Advisors.

With manufacturing contributing over $20bn pa to the Queensland economy and employing more than 170,000 people, the Queensland Government is committed to helping foster new growth and transition existing businesses into sustainable and successful advanced manufacturers to ensure the continued growth of the industry.

In the words of the Queensland Government itself, its vision for the Queensland manufacturing sector is for it to be “… international market leaders in the delivery of advanced manufacturing technologies, systems, products and services that are innovative, sustainable, and embedded in local and global supply chains” by 2026.

This vision drives its strategy of supporting advanced manufacturing, which in Queensland, includes sectors such as:

  • Defence industries.
  • Food, beverage, and beef processing.
  • Mining equipment, technology, and services.
  • Precision agriculture.
  • Rail manufacturing.
  • Renewables and hydrogen.
  • Resource recovery

High value sectors

While there are many areas in the manufacturing industry, four sectors have stood out as high-value emerging areas to watch in Queensland. These are :

  • Potential for manufacturing opportunities in areas such as large-scale alloy casting, heat treatment for avionics, along with new opportunities for advanced materials.
  • A fast-growing sector with an emphasis on manufacturing products from sustainable organic or waste resources. This is considered a sector with a high level of potential, given the future focus of renewables and sustainability in the general business environment.
  • Growing demand for medical devices and assistive technologies for the state’s growing and aging population. In addition, Queensland is well placed for export opportunities of pharmaceutical products, including the manufacture of vaccines.
  • Defence industries. Ongoing investment in the defence sector is creating opportunities for advanced manufacturing of heavy vehicles and new types of composites for structures and components.

Why establish your business in Queensland?

Queensland Premier Annastacia Palaszczuk stated in the foreword to the advanced manufacturing roadmap: “Queensland offers a unique home for manufacturing businesses to grow and evolve into manufacturers of the future, poised for further success. Our abundance of natural resources, comprehensive transport and infrastructure networks, world-class universities and training institutes, unrivalled proximity to the high-growth markets of the Asia-Pacific, competitive business and living costs, and enviable lifestyle make Queensland an attractive place to operate.”

Add to that the State’s handling of the COVID-19 pandemic, compared with other states where many businesses are struggling to operate due to the continued lockdowns. Queensland businesses can operate comparatively freely with minimal COVID-19 restrictions in place, allowing them to continue to grow and thrive during this period.

Apart from the enviable lifestyle we have up here in Queensland, there are several key factors to consider when looking to establish or expand your operations:

  • Government grants. Queensland is committed to funding the manufacturing industry and has continued to deliver on grants to the industry, with a focus on partnering with those businesses looking to grow their Queensland operations. Successful grants include the Made in Queensland grant, which has delivered $77m to small and medium manufacturers.
  • Manufacturing hubs. The Government has invested over $30m into regional hubs to support the growth of regional manufacturers in locations such as Townsville, Cairns and Rockhampton. These hubs provide a place for local manufacturing businesses to receive expert advice and support to transition to advanced manufacturing. The latest hub to open was located on the Gold Coast in July 2021.
  • Housing affordability. With capital city prices increasing significantly over the past 12 months, the mean price of residential dwellings for Queensland is still only $586,000, compared with $1,011,000 in New South Wales, and $834,000 in Victoria. With affordability of property being a key issue for staff, Queensland represents significant value compared to other states, while still showing signs of long-term growth.
  • Migration to Queensland. Since the COVID-19 pandemic started, there has been a significant change in the way people live their lives and where they are choosing to live. Coupled with housing affordability, this has led the latest statistics to show a net migration to Queensland of more than 7,000 people, compared to a loss of 4,900 in Victoria and 4,500 in New South Wales. With more people moving up to the Sunshine State, there will be greater opportunities to attract and retain staff.
  • Olympics 2032. Brisbane has recently been named host of the 2032 Olympics and Paralympic Games, which will be the largest event ever staged in Queensland. The Brisbane 2032 Games are forecasted to generate $8.1bn in total benefits for Queensland.

Craig Barry is Director, Tax Services at William Buck.

www.williambuck.com