Greater South East Melbourne (GSEM) has overtaken Western Sydney as Australia’s largest manufacturing region, according to new analysis by Deloitte Access Economics.
The report, GSEM: Australia’s Manufacturing Powerhouse, commissioned and released by the GSEM regional alliance, shows the area supports more manufacturing jobs and businesses per capita than any other part of the country.
The region, which covers the municipalities of Cardinia, Casey, Frankston, Greater Dandenong, Kingston, Knox, Monash and the Mornington Peninsula, employs one in four of Victoria’s manufacturing workers and produces more manufacturing output than any other region nationally.
GSEM reported that the area is home to 3,801 manufacturing businesses, providing 75,046 jobs.
According to the report, this is more manufacturing employment than in Western Sydney, Brisbane South, Perth South, the G21 region, or the entire state of South Australia, despite GSEM’s smaller population base.
The Deloitte report also found that South East Melbourne’s manufacturing workforce has grown by 9.3 per cent between 2016 and 2025, while the national workforce fell by 0.5 per cent and Western Sydney declined by 4.7 per cent.
“South East Melbourne is uniquely placed to lead Australia’s economic renaissance, with advanced manufacturing at the core,” GSEM Chair Simon McKeon AO said.
“The unique makeup of our businesses, industry hubs, geography and workforce position GSEM as a vital economic and strategic asset for Victoria and Australia.”
According to GSEM, the region’s manufacturing strength is underpinned by advanced capabilities in industries such as chemicals, pharmaceuticals, advanced materials and transport equipment.
It also hosts nationally significant industrial clusters, including the Australian Manufacturing and Materials Precinct in Clayton and the Dandenong National Employment and Innovation Cluster.
The alliance said its location provides direct access to key transport corridors linking to the Port of Melbourne and Melbourne Airport, while education and training institutions such as Monash University, Federation University, Chisholm Institute and Holmesglen Institute support the development of a skilled workforce.
“GSEM’s manufacturing sector is not only crucial today, but with the right support it can drive Australia’s future economic growth,” the Deloitte report noted.
GSEM cautioned that growth pressures could constrain the region’s industrial future, pointing to limited land supply, workforce skills challenges, and freight infrastructure bottlenecks.
The alliance has called on the Federal and Victorian governments to act on these issues through land use planning, infrastructure investment and skills initiatives.
“Our political leaders need to recognise and celebrate the immense contribution of Greater South East Melbourne, while also continuing to protect and invest in its future,” McKeon said.
