Australian manufacturers need clearer procurement signals, long-term policy certainty and targeted investment if the Federal Government’s Future Made in Australia agenda is to translate into tangible outcomes, according to GME Group Marketing Manager Tony Crooke.
In an exclusive interview with Australian Manufacturing, Crooke said manufacturers were now looking for the Government to move beyond policy commitments and provide coordinated action around sovereign capability, supply chain resilience and workforce development.
“Manufacturers now need to see the agenda move from aspiration to execution,” Crooke said.
He said this should include clearer definitions of which capabilities need to be maintained onshore, alongside measures such as strategic stockholdings of essential inputs, faster procurement pathways for locally made products and co-investment in domestic processing and component manufacturing.
Policy support needed to strengthen local manufacturing
For Australian manufacturers, the issue is increasingly tied to the commercial realities of producing locally. Crooke said businesses face structural barriers including rising energy, logistics, materials and compliance costs, as well as competition from lower-priced imports and shortages of skilled workers.
“Competing primarily on price becomes a race to the bottom when cheaper imports can consistently undercut local margins,” he said.
Crooke argued that government procurement could play a greater role in creating dependable demand for Australian-made products, particularly in strategically important categories.
“Where national resilience is at stake, these policies should include clear and measurable local content requirements,” he said.
The comments come as Australian manufacturers continue to navigate supply chain risks exposed by global disruptions in recent years. According to Crooke, those disruptions have reinforced the value of shorter supply chains, specialised domestic capabilities and reliable delivery.
He said local design, engineering and assembly can give manufacturers greater control over quality and timing while allowing them to respond more quickly to customer requirements.
GME, an Australian communications technology manufacturer, reprted that it generates more than 85 per cent of its revenue from Australian-made products. Crooke said this domestic manufacturing base helped the company maintain stable deliveries when international freight costs increased and delays became widespread.
“That experience reinforced that customers are prepared to pay for certainty, particularly when they rely on products that must perform every time,” he said.
Manufacturers weigh reshoring against global sourcing
However, Crooke acknowledged that Australian manufacturing remains dependent on imported components and sub-assemblies in many areas. Long and concentrated supply chains can leave businesses exposed to disruptions caused by transport constraints, geopolitical developments or changes in global markets.
For manufacturers seeking to increase domestic production, he said reshoring should therefore be approached selectively rather than as an objective in itself.
“Reshoring is not a blanket solution; it must be targeted and strategic,” Crooke said.
He suggested manufacturers assess individual components and production stages according to their strategic value and exposure to disruption. For some businesses, this could mean maintaining local design and engineering capabilities, manufacturing critical sub-assemblies domestically while continuing to source commodity components internationally.
“A hybrid model offers the best balance,” Crooke said.
This approach, he said, allows manufacturers to concentrate domestic investment on areas where local production provides advantages in quality, certification, speed to market, resilience or customer support.
Crooke said sovereign capability should similarly be determined according to strategic necessity, with critical infrastructure, emergency services, defence, health, energy and communications among the areas that warrant consideration.
He also pointed to import dependency and concentration risk as factors in determining where domestic capability may be justified.
“Where supplies come from a small number of offshore sources or rely on vulnerable trade routes, investing in local or trusted allied production becomes an important resilience measure,” he said.
For Crooke, government support should also consider whether Australian manufacturing capabilities have dual-use applications or export potential, which could improve their commercial viability beyond domestic government demand.
He called for a clear and published set of sovereign manufacturing priorities that is directly connected to procurement, co-investment and workforce programs.
Skills investment key to long-term manufacturing growth
Crooke also identified workforce development as a critical component of strengthening Australia’s manufacturing base, arguing that skills programs need to be closely linked to actual industry demand.
He said employer-linked apprenticeships and traineeships, supported by incentives for businesses training workers in areas such as machining, electronics assembly, RF engineering, testing and certification, could help address skills shortages.
“The goal should be to align skills investment with manufacturers’ genuine growth plans,” he said, adding that training should translate into increased production capacity rather than qualifications without clear employment pathways.
Looking ahead, Crooke said the success of the Future Made in Australia agenda should ultimately be judged by what happens on the factory floor.
“Success would mean more production lines operating in Australia, more skilled manufacturing jobs being created and retained, and fewer critical categories depending on a single offshore source,” he said.
He identified several indicators that could demonstrate whether the agenda is delivering, including a sustained decline in manufacturing insolvencies, greater uptake of Australian-made goods in critical categories, improved apprenticeship participation and retention, and increased exports of specialised Australian-made products.
For Australian manufacturers, he said the ultimate test would be whether government policy delivers greater certainty and strengthens the domestic capabilities businesses need to compete.
“Increased exports of specialised, high-reliability products would be a strong sign that Australian manufacturing is competing successfully on quality and value, rather than relying solely on policy protection,” Crooke said.
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