New South Wales (NSW) is home to highly innovative, competitive and world-leading manufacturers that are vital to the diversity and strength of the Australian economy.
NSW manufacturers produce almost 30% of the country’s total manufacturing output, generating around $33 billion in industry value. They also directly employ around 253,000 people, accounting for almost one-third of jobs in the sector countrywide.
The NSW Government recognises that manufacturing is undergoing a transformation across the industrialised world.
As the sector is changing, manufacturing businesses are increasingly using new technology or employing advanced business models and so are increasingly being termed ‘advanced manufacturers’.
Embracing advanced manufacturing, regardless of the end product, will be vital to the ongoing profitability of the industry in NSW.
NSW advanced manufacturing industry development strategy
The NSW Department of Industry has consulted with manufacturing stakeholders in the state to develop the NSW advanced manufacturing industry development strategy
It aims to provide a better understanding of the metrics that define global manufacturing success in an advanced economy such as NSW.
It also sets out targeted, practical initiatives to grow the sector, build the capability and capacity of businesses and continue to foster a supportive external business environment in the state.
In developing this strategy, key insights gained included:
- NSW manufacturers can gain a competitive advantage by focusing on value creation
- Advanced manufacturing is no longer about what you make, but how you make it
- NSW manufacturers can take advantage of largely untapped opportunities to become more advanced, and every NSW manufacturer has the potential to be ‘advanced’
- To create value, NSW manufacturers can access the state’s large, highly skilled, cost-competitive labour force.
Significant advanced manufacturing opportunities are available in NSW and elsewhere in Australia. These could increase the industry’s national value-added by 25–35%, equivalent to $25.3 billion to $34.6 billion, by 2026.
To pursue the opportunities advanced manufacturing presents, the strategy is designed to:
- increase collaboration and research within the manufacturing industry and with research institutions by facilitating the development of advanced knowledge
- support skills development in the industry by driving the adoption of advanced processes
- support the implementation of advanced service-oriented business models that lead to high-value manufacturing solutions and create high-value products that reach untapped markets and segments
- grow export and attract investment.
This strategy focuses on laying the foundations for a responsive manufacturing industry that remains a source of economic strength and innovation in NSW.