Dr Jens Goennemann, managing director of the Advanced Manufacturing Growth Centre (AMGC), has urged policymakers to move beyond consultations and deliver immediate support to small and medium-sized manufacturers, warning that inaction is eroding the nation’s industrial base.
Speaking after a series of engagements with federal and state governments, Dr Goennemann said AMGC’s role is to represent the interests of its network of 8,000 members and the broader manufacturing sector, most of whom are SMEs.
“In all instances, we relayed the challenges manufacturers face daily, from high energy costs to lack of available capital and flip-flop policy,” he said. “But the single largest message delivered at all forums was the frustration around inaction and the impact this is having on the industry.”
Dr Goennemann pointed to recent closures, including Oceania Glass, the Peanut Company, several metal processors, and a lithium battery maker in Tomago that entered voluntary administration after an investor withdrew support. He said such developments reflect the difficult business environment and the consequences of slow-moving policy responses.
“The slow pace of industry programs and the ever-increasing pressures on business are having a noticeable impact today,” he said.
Recent Australian Bureau of Statistics figures showed manufacturing grew just 0.2 per cent in the 12 months to June 2025, the second lowest rate of any industry.
Dr Goennemann said the data underlined the urgency for reform, adding that “a future made in Australia continues to slip away.”
He outlined three priorities for strengthening the sector: immediate support for manufacturers close to scaling, recognition of manufacturing as more than “a backdrop for photo opportunities,” and an industry-led plan modeled on proven approaches overseas.
“What we do not need is another blueprint, innovation summit, strategy paper, policy working group, or roundtable,” he said.
“We need an industry-led approach – not more high-vis kabuki or suits pretending to understand what manufacturing is. And once that plan is in place, we must stick to it.”
Despite the current pressures, Dr Goennemann said the sector retains significant potential. “Australia’s manufacturing industry holds immense potential. We know how to turn R&D into GDP, we know what our global customers want, and we know what it takes to build a future in Australia. AMGC will unapologetically advocate for it.”
