Back to the Future for a Manufacturing Powerhouse

Greater Western Sydney can lead the nation’s manufacturing resurgence, according to a new discussion paper released by leading advocacy group, the Western Sydney Leadership Dialogue.

Re-Tooling a Manufacturing Powerhouse: A Future Made in Greater Western Sydney outlines the
region’s potential to power a new manufacturing golden age, while identifying the barriers holding back industry.

Dialogue CEO Adam Leto said the foundations to supercharge the region’s manufacturing renaissance are already in place – and ready to step up.

“Western Sydney has always been a region of makers, builders and innovators – it’s part of our DNA,” Mr Leto said.

“Manufacturing has underpinned Western Sydney’s economy since the 1950s, and unlike many other industrial regions which have fallen away over the past few decades, it has managed to remain a major employer.

“This was once the epicentre of manufacturing in this country, and there’s no reason it can’t return to those halcyon days – particularly given the region’s high concentration of talent, skills and businesses.

“Very few places in the nation are as well-placed to drive the next era of manufacturing as Greater
Western Sydney.”

Mr Leto added that the NSW Government, along with the Federal Government, through its Future
Made in Australia Act, has signalled its commitment to strengthening the region’s sovereign industrial capability.

“We’re at a point where we need to see these government initiatives and policies put into practice that will open up more opportunities for local manufacturers not only to prosper, but also help solve some of the nation’s biggest issues, particularly in the areas of housing and clean energy,” Mr Leto said.

“The conflict in the Middle East has shown how quickly global supply chains can be disrupted. When that happens, regions with strong local capability are better able to keep businesses operating and people in work.”

Following consultation with key industry stakeholders, the Dialogue’s discussion paper identifies the barriers and opportunities to unlock the region’s manufacturing potential, including:

Commitment to buy local
State and federal jurisdictions have domestic procurement policies in place, but many industry
stakeholders told us these policies aren’t yet working as intended because definitions and systems
aren’t well established.
The solution:

• Develop clear and consistent definitions for local content that help producers understand how these policies can be accessed.
• Appoint a domestic manufacturing working group with representatives of workers, industry and government to spot and correct loopholes or flaws in government policies

Space to grow
As the region’s population grows, demand for residential land has put pressure on industrial land costs.
The solution:

• Embed industrial lands planning into strategy.
• Investigate the impact of land taxes on SMEs to ease cost pressures.

Freight and connectivity
GWS manufacturing and freight systems are constrained by limited connectivity, particularly between major regions. Without urgent integration of freight corridors, the region’s manufacturers battle inefficiency, higher costs and reduced competitiveness.
The solution:

• Develop and deliver a plan to improve freight connections between the Illawarra’s global freight gateway to South Western Sydney’s rapidly growing manufacturing and logistics industries.

Creating career paths
While employers cite skills shortages as a key constraint on manufacturing growth, in GWS upskilling women into manufacturing roles is an opportunity to expand the available workforce, diversify skills pipelines and build the scale needed to grow the sector.
The solution:

• Targeted campaign to reposition manufacturing as a modern, high-tech and well-paid career.
• Scale place-based programs that engage schools and provide firsthand exposure.
• Partner with councils and industry to tackle gender and cultural barriers.

READ THE FULL REPORT ON OUR WEBSITE: Re-Tooling-A-Manufacturing-Powerhouse.pdf