There is expected to be an increased in components and machinery made locally, after the Government’s $1.5bn investment into its Modern Manufacturing Strategy.
This investment will result in improved availability and safety of consumer goods in Australia.
The Federal Government made its investment available to two of the six priority manufacturing sectors, as of this month.
Manufacturers can apply for a grant to help them strengthen their local supply chain, handle mass production, up-skill employees, scale up and improve competitiveness.
“Restrictions enforced across the world have resulted in a lack of availability, or delivery delays of goods, due to parts and components held up in international supply chains,” quality management expert at SAI Global, Saeid Nikdel says.
“The slowing of production lines has led a flow-on effect to Australians wanting to access goods. The problem has highlighted our manufacturing sector’s deepest vulnerability: its dependence on overseas markets for the supply of machinery, tools, parts and product components.
“Most of the machinery that we bring into Australia comes from the US and Europe, while product components and parts mostly come from China.”
Mr Nikdel says that a number of manufacturing clients have told SAI Global that they are now looking to produce their own product components in Australia.
This coincides with what most Aussies want, with nearly nine in 10 consumers believing we should produce a higher proportion of essential products locally.
Mr Nikdel is optimistic that the $1.5bn Government investment will improve its target markets of space.
“As demand for Australian suppliers increases, our local manufacturers will also need to boost their workforce and facilities to scale-up operations,” he says.
“Right now, the manufacturing sector has a shortage of skilled machinery operators. The Government’s direct funding of the sector will not only result in new manufacturing areas, but also an increase in skilled workers and manufacturing facilities.”