NSW pilot program to strengthen regional manufacturing

The NSW Government has launched a Lean Manufacturing Pilot Program aimed at boosting productivity, reducing costs and increasing competitiveness for manufacturers across regional NSW.

The $800,000 program will provide small to medium-sized manufacturers across regional NSW with funding to undertake audits by professional consultants that will identify ways to re-organise their manufacturing operations.

Lean manufacturing is an internationally recognised business management process that revolves around the principles of continuous improvement, waste elimination and a customer-centric approach. It focuses on creating products more efficiently by eliminating unnecessary steps, saving time and using fewer materials in the production process. This approach helps businesses produce goods with fewer resources, without compromising on quality.

More efficient processes mean production lines manufacture fewer products with defects, which in turn reduces operating costs related to providing returns and waste disposal.

For example, a regional food manufacturer might reorganise production lines to improve efficiency, implement preventative maintenance to reduce equipment breakdowns and implement just-in-time inventory management to reduce excess stock and waste.

The audits, undertaken as part of the program, will offer tailored recommendations to help businesses identify inefficiencies, streamline operations, reduce waste and increase productivity, while also highlighting training opportunities for staff.

Many regional NSW companies such as the Bega Group in Bega, Donaldson Australia on the Central Coast, Belmore Engineering at Tamworth, Flavourtech in Griffith and Tyree Transformers at Braemar have successfully used lean manufacturing principles.

Manufacturing is a key driver of the NSW economy, contributing nearly 30% of Australia’s total manufacturing output. In regional NSW, the sector generates $32 billion in sales and employs 84,000 workers, reinforcing the need for continued support to strengthen and futureproof the industry.

“The Lean Manufacturing Pilot Program is an important part of our ongoing support for regional manufacturers across the state, helping them overcome the challenges posed by rising supply chain, energy and labour costs,” said Minister for Regional NSW and Western NSW Tara Moriarty. “We know that by supporting regional businesses to improve their operations, we’re strengthening the entire economy of regional NSW, creating more local jobs and enhancing the long-term sustainability of our regions.”

Expressions of interest for the audits are now open to eligible manufacturers and will close at 4 pm on Monday, 31 March 2025, with funding allocated on a first-come, first-served basis.

For more information about the program, including guidelines and Expression of Interest details, go to www.nsw.gov.au/LMPP or email economic.programs@dpird.nsw.gov.au.

Image credit: iStock.com/Tempura