NSW Industry Policy sets local manufacturing targets

The NSW Government has released the state’s first NSW Industry Policy to promote collaboration across industry, the innovation sector and trade businesses.

The policy is built around three connected missions — Housing, Net Zero & Energy Transition, and Local Manufacturing — and sets out the government’s approach to the NSW economy of the future. The policy will also set three new local manufacturing targets.

The government says it is committed to building a better NSW with a thriving and diversified economy, and the NSW Industry Policy will provide a clear strategic direction across all government agencies and programs. This approach will ensure industry support is clear and consistent, driving investment to help build a productive and resilient economy fit for the future.

According to the government, the policy consolidates actions from the private sector, research institutions and government agencies to help address some of the current and future challenges facing the state.

The government says it will use regulation, procurement, planning, strategic land use and infrastructure building to help drive change. It will also partner with industry and other stakeholders to deliver on skills and education, innovation and technology, and trade and investment, to help ensure the policy’s success.

The Local Manufacturing mission aims to make NSW a dynamic and resilient economy supported by local manufacturing. Manufacturing has declined nationally over the past two decades, and NSW manufacturers face significant challenges, including high costs and weak supply chains.

In light of these challenges, growing local manufacturing will require NSW to leverage its comparative advantages, including its skilled workforce, infrastructure and abundant resources. Three local manufacturing targets have been set:

• Target 1: NSW Gross Value Added for manufacturing achieves real growth on average over the years to 2031.
• Target 2: NSW Gross Value Added for manufacturing achieves growth equal to, or greater than, Gross State Product on average in the years between 2031 and 2040.
• Target 3: Achieve a 50% minimum local content target for future rolling transport stock by 2035.
   

Advanced manufacturing technologies will also provide new opportunities for NSW to be globally competitive in complex and high-value products while NSW manufacturers can benefit from the global transition to net zero.

Innovative new technologies in big data, artificial intelligence, quantum, virtual reality and robotics are dramatically changing manufacturing processes, from design and prototyping to the actual fabrication of products. To these ends, the state government has already committed over $600 million to drive investment in local manufacturing.

“The NSW Industry Policy details the Minns Labor government’s vision and plans for the economic future of NSW and provides the strategic direction across all government agencies and programs to drive industry investment,” said NSW Minister for Industry and Trade Anoulack Chanthivong.

“This is a clear and stable policy approach to help guide private sector investment needed to increase jobs and productivity in NSW.

“NSW manufacturing grew in only two years in the 2010s under the previous Liberal–National government,” Chanthivong noted.

“With three new Local Manufacturing targets, we have demonstrated a real commitment to supporting local manufacturing to promote a dynamic, sustainable and diversified economy. We want to see a manufacturing industry that is innovative, productive, and boosts Australia’s sovereign capability.”

Image credit: iStock.com/EtiAmmos