Analysis: Manufacturing goals are clear, but skills shortages remain the bottleneck

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Stock image. Image credit: Pixel_B/stock.adobe.com

Australia’s manufacturing ambitions are increasingly being tested by a central workforce question, according to the Manufacturing Industry Skills Alliance, as government, industry and training leaders gather in Melbourne to address skills shortages shaping the sector’s future.

The National Manufacturing Workforce Forum, held at the State Library Victoria and hosted by the Manufacturing Industry Skills Alliance, brought together stakeholders from across industry, unions, education and government to examine how Australia can translate its manufacturing goals into delivery on the ground.

The Alliance said the key issue facing the sector is not only what Australia wants to manufacture, but whether there are enough skilled workers to do it, as demand grows across defence, advanced manufacturing and clean energy industries.

Federal Minister for Skills and Training the Hon Andrew Giles MP said manufacturing remains central to Australia’s economic and strategic priorities, including the energy transition and sovereign capability.

“Australian manufacturing is critical to so much of what we’re working to achieve as a nation, including our transition to a clean energy economy and building our sovereign capability,” said Andrew Giles. “We need to grow our workforce with the highly trained, skilled workers that enable us to meet the challenges and opportunities of our national priorities.”

He pointed to existing national frameworks, including Jobs and Skills Australia and the network of Jobs and Skills Councils, as well as industry initiatives aimed at improving training pathways and awareness of manufacturing careers.

“As one of Australia’s ten Jobs and Skills Councils, the Manufacturing Industry Skills Alliance will continue to play an essential role in this work,” he said. “The Alliance is leading the way in building partnerships that will create the solutions Australia needs.”

Economist Saul Eslake told the forum that global economic and geopolitical shifts are reshaping the environment in which Australian manufacturing operates, creating both risks and opportunities.

“The rules-based international order which has underwritten Australia’s prosperity over the past four decades or so is disintegrating,” he said.

He added that Australia’s future manufacturing opportunities are likely to build on existing strengths, but will depend on capability development in the workforce.

“Australia’s greatest potential for re-building manufacturing is likely to be founded on our long-standing advantages and expertise in mining and agriculture, an emerging comparative advantage in clean energy and our expertise and innovation.”

Manufacturing Industry Skills Alliance Chief Executive Officer Sharon Robertson said the forum was intended to align stakeholders around practical workforce solutions.

“For all the attention on what Australia wants to make, the harder question is who will make it, and whether we are giving those people the skills to do it,” she said. “That is a workforce question, and it is one that industry, government and the training system can only answer by working together.”

The forum is expected to continue discussions on improving entry pathways into manufacturing and strengthening workforce capability as Australia seeks to expand domestic production capacity across priority sectors.