$1.5b shot in the arm for manufacturing industries

Prime Minister Scott Morrison has pledged to invest about $1.5 billion over the next four years in a Modern Manufacturing Strategy to make Australian manufacturers more competitive, resilient and able to scale up. “The COVID crisis opens a new chapter for Australian manufacturing as a revitalised source of high-wage jobs, valuable exports and national income," Mr Morrison said. “Our Modern Manufacturing Strategy is at the heart of our JobMaker plan. It starts with creating a stable and competitive business environment to grow all parts of our manufacturing sector, but it does not end there.“It will play to Australia’s strengths, improve collaboration and commercialisation, and create a sector that is modern, dynamic and highly skilled.“Through this strategy, we are determined to ensure government, industry and the research and education sectors are all working in the one direction to build scale in our manufacturing sector." The centrepiece of the strategy is the $1.3 billion Modern Manufacturing Initiative (MMI), which will see the Government strategically invest in projects that help manufacturers to scale up and create jobs. The Federal Government said MMI would support projects within six national priority areas: Resources technology and critical minerals processingFood and beverageMedical productsRecycling and clean energyDefenceSpace Industry will be engaged to co-design tailored road maps for each of the priority sectors to set clear goals over the next two, five and 10 years. investment.The strategy will also address the competitiveness of individual manufacturers in priority sectors, with a $52.8 million expansion of the Manufacturing Modernisation Fund. A $107.2 million Supply Chain Resilience Initiative will support projects that address an identified supply chain vulnerability. Major role for mining and METS sector The Minerals Council of Australia expects the contribution of mining to manufacturing jobs and innovation to expand under the Modern Manufacturing Fund outlined today. "Building on Australia’s strong comparative advantage, Australian mining and the mining equipment, technology and services (METS) sector already support one in 10 Australian jobs, mostly in regional areas," chief executive officer Tania Constable said."Expanding the networks of local suppliers and supporting the commercialisation of inventions will create further job opportunities."The METS sector is an unsung champion of Australian manufacturing, with three-quarters of METS companies building and selling into mining along with other sectors of the economy."Further development of Australia’s critical minerals capability will also serve to expand manufacturing across the entire economy."Along with proposed changes to the Northern Australia Infrastructure Facility and lower energy costs, significant new investment in mining, processing new materials and manufacturing is now a stronger prospect, enabling the manufacturing of lithium, graphite and a range of high performance metals for use in Australia."

$1.5b shot in the arm for manufacturing industries

Industry Queensland

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