A new report released last week has found that about three quarters of former supply chain companies remain in business following the closure of the Ford, Holden and Toyota car manufacturing plants in 2016 and 2017.
The Australian Automotive Industry – Transition following the end of Australian motor vehicle production report presents an analysis of the outcomes for the automotive supply chain and lessons for future policy directions.
According to the report, early results of the Government programs designed to support transition and diversify supply chain businesses are encouraging, with about 75% of businesses that participated in the Automotive Transition Scheme remaining in business, albeit with reduced workforces.
Minister for Industry, Science and Technology Karen Andrews said the Morrison Government ‘has a strong set of policies and programs’ to encourage all manufacturers to embrace new technologies, especially in cases of industry transition.
“This report shows locally owned businesses achieved the best results by drawing on existing skills to diversify and take advantage of new markets,” Minister Andrews said.
“Supply chain businesses have transitioned effectively by moving into new sectors such as truck and bus manufacturing, as well as agriculture and medical technologies.
“For future growth, electric vehicle markets offer significant opportunities for businesses to participate further in global supply chains.
“Our manufacturers also have strengths in emerging areas of light weight components, battery recharging and cooling, and autonomous vehicle technologies.”
Minister for Employment, Skills, Small and Family Business, Michaelia Cash said the report details the impact of the Automotive Transformation Scheme on the transition of the industry’s labour force.
“These findings reinforce a recent report from my department, which found that as a result of the actions taken by the Coalition Government working with industry, 82 per cent of affected workers were able to secure work, with the majority satisfied with their circumstances. Four per cent of these started their own business,” Minister Cash said.
“The successful outcomes for car-industry workers shows what can be achieved when industry and government work together. The support provided included tailored career advice, skills and training assistance, health and wellbeing initiatives and job search assistance through the Government’s Stronger Transitions package.”
The report is available at: industry.gov.au/auto-transition-report.