Greater Western Sydney’s manufacturing sector could play a leading role in a national resurgence, according to a new discussion paper released by the Western Sydney Leadership Dialogue.
The report, Re-Tooling a Manufacturing Powerhouse: A Future Made in Greater Western Sydney, highlights the region’s manufacturing strengths while identifying barriers that may be limiting further growth.
Dialogue chief executive Adam Leto said the region already has the foundations needed to support a renewed phase of industrial activity.
“Western Sydney has always been a region of makers, builders and innovators – it’s part of our DNA,” Leto said.
He noted that manufacturing has been central to the region’s economy since the 1950s and remains a significant source of employment, in contrast to declines seen in other industrial areas.
“This was once the epicentre of manufacturing in this country, and there’s no reason it can’t return to those halcyon days – particularly given the region’s high concentration of talent, skills and businesses,” he said. “Very few places in the nation are as well-placed to drive the next era of manufacturing as Greater Western Sydney.”
The report also points to policy signals from state and federal governments, including the Future Made in Australia agenda, as indicative of broader support for strengthening domestic industrial capability.
“We’re at a point where we need to see these government initiatives and policies put into practice that will open up more opportunities for local manufacturers not only to prosper, but also help solve some of the nation’s biggest issues, particularly in the areas of housing and clean energy,” Leto said.
He added that recent geopolitical tensions have underscored vulnerabilities in global supply chains. “When that happens, regions with strong local capability are better able to keep businesses operating and people in work,” he said.
Based on consultations with industry stakeholders, the paper outlines several challenges, including unclear definitions in local procurement policies, rising industrial land costs, freight and connectivity constraints, and workforce shortages.
Stakeholders indicated that while domestic procurement frameworks exist, “definitions and systems aren’t well established,” limiting their effectiveness. The report recommends clearer standards for local content and the establishment of a working group involving industry, workers and government to address policy gaps.
It also highlights pressure on industrial land as population growth drives demand for housing, and calls for stronger planning protections and a review of cost pressures such as land taxes on small and medium-sized manufacturers.
Transport and logistics were identified as another constraint, with limited freight connectivity affecting efficiency and competitiveness. The report proposes improved integration between major freight corridors, including links between the Illawarra and South Western Sydney.
On workforce development, the paper notes that skills shortages remain a constraint but identifies opportunities to expand participation, particularly by increasing the number of women entering manufacturing roles and strengthening engagement with schools and training providers.
The report states that manufacturing continues to account for 11% of employment in Greater Western Sydney, above state and national averages, and contributes 60% of the region’s export value, indicating an existing base for potential growth.
