Australia’s manufacturing and fabrication industry is seeking stronger local content requirements, improved compliance checks and investment in workforce development, with a Weld Australia survey finding that many businesses have limited confirmed work despite concerns about future project demand.
Weld Australia’s 2026 Industry and Workforce Outlook Survey found that 60 per cent of respondents had three months or less of confirmed work, while 20 per cent had no confirmed pipeline. Almost 60 per cent of fabrication workshops were operating below 75 per cent capacity, with respondents citing a lack of work and skilled staff as the main reasons.
Weld Australia CEO Geoff Crittenden said the findings highlighted a gap between local industry capacity and access to projects.
“Australian welding and fabrication businesses are not short of capability. They are short of access to work,” Crittenden said.
The survey identified a lack of work as the leading concern for business owners and senior managers, cited by 35.7 per cent of respondents as a factor likely to inhibit business growth in 2026. Labour shortages followed at 21.4 per cent, alongside concerns about rising material costs, inflation and interest rates.
Compliance with Australian welding and fabrication standards was another major concern. Some 71.4 per cent of respondents said imported fabricated products failed to meet relevant standards at least sometimes, while 53.6 per cent said this occurred often or very often.
Weld Australia is calling for independent verification of fabricated steel used in Australian projects, regardless of where it is manufactured, and government support for the proposed Australian Fabrication Authority.
“If imported fabricated steel complies with Australian Standards, it should be welcome. If it does not comply, it should not be used,” Crittenden said.
Rising operating costs are also affecting businesses. The survey found that 82.1 per cent of respondents reported higher energy prices over the previous 12 months, while 78.5 per cent reported increased material costs. However, only 28.5 per cent reported higher selling prices, and 39.2 per cent recorded a decline in gross profit margins.
Despite these pressures, 50 per cent of respondents reported increased investment in technology, while 42.8 per cent increased investment in staff training and 39.2 per cent increased investment in research and development.
Workforce shortages remain a key challenge, with 89.2 per cent of respondents saying Australia did not have enough qualified welders to meet anticipated infrastructure and defence demand. The survey also found that 79.5 per cent believed welding did not receive the respect it deserved.
Crittenden said investment in apprenticeships, pre-apprenticeship programs, TAFE pathways and industry-led training would be needed to strengthen the workforce.
Weld Australia is urging federal and state governments to strengthen local content procurement requirements, improve compliance verification, support advanced manufacturing adoption among small and medium-sized businesses, and consider whole-of-life value rather than only upfront costs when awarding contracts.
The organisation said these measures would support local fabrication businesses and help build the workforce and manufacturing capabilities needed for infrastructure, defence, renewable energy and other industrial projects.
