Manufacturing in Victoria’s south-east requires further targeted investment to fully realise its potential, according to the Greater South East Melbourne Council Alliance, which says the 2026–27 Victorian Budget does not go far enough to support the region’s industrial base.
In a statement, GSEM acknowledged the allocation of close to $20 million toward initiatives supporting electrification in the food manufacturing sector and diversification within the gas appliance manufacturing supply chain. However, the alliance said the funding falls short of what is needed to strengthen the region’s role as a key manufacturing hub.
Cardinia Shire Mayor Brett Owen said the south-east’s position as a manufacturing centre should not be assumed.
“Without targeted investment to help manufacturers modernise, plan for future industrial land and build workforce capability, we risk seeing jobs and investment stall or move elsewhere,” he said.
GSEM reiterated its call for the establishment of a dedicated fund for small and medium-sized manufacturers to support the uptake of new technologies, automation and digital transformation.
The alliance also pointed to the need for an industrial land plan, expanded training opportunities and a shared forum to encourage collaboration across the sector.
The group welcomed several broader budget measures, including funding to progress development of the Victorian Renewable Energy Terminal at the Port of Hastings and previously announced investment in bus services.
Owen said transport connectivity remains critical to maximising the benefits of major infrastructure projects.
“Major rail projects will only deliver their full benefits if people can get to stations easily and reliably,” he said. “Improving bus frequency and reliability is one of the quickest and most cost-effective ways to reduce congestion and make better use of our rail network.”
GSEM also noted investment in education infrastructure, including upgrades to Hastings Primary School and Pakenham Consolidated School, as well as planning for a new secondary school at Pattenson Road.
The budget further confirmed funding for a Digital, AI and Technology TAFE Centre of Excellence at Chisholm Institute’s Frankston campus.
Additional funding was allocated to health services, including the Pakenham Community Hospital and the redevelopment of Dandenong Hospital, alongside upgrades under the Metropolitan Roads Upgrade program.
Despite these measures, GSEM said more investment is required to address congestion across one of Victoria’s key freight and commuter corridors and to support productivity for local businesses.
The alliance represents communities and businesses across the municipalities of Cardinia, Casey, Frankston, Greater Dandenong, Kingston, Knox, Monash and Mornington Peninsula, with governance supported by an independent board including Simon McKeon, Margaret Fitzherbert and James Merlino.
