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Advanced manufacturing

Australia’s manufacturers embrace advanced technologies. The Australian Government has powered up support for our manufacturing capability, focusing on high-value sectors.

We offer investors:

  • Strong government support for industry innovation and commercialisation. This includes a new A$15 billion National Reconstruction Fund to help Australian industry move up the value chain.
  • Strong talent pool of engineers and materials scientists. World-leading expertise in research fields including advanced materials, nanotechnology and 3D printing.
  • Abundant natural resources that mean access to locally sourced raw materials. Space available to support manufacturing industries.
  • Domestic demand for advanced manufacturing capability in sectors including energy, infrastructure, defence, aerospace, health, and agrifood.
  • Access to customers in key export markets. Australia presents a strategic location for distributed/decentralised manufacturing opportunities
  • “Made in Australia”: The opportunity to leverage Australia’s reputation for quality, and bespoke and customised products.
$118 billion
investment

In 2022, there was A$118.4 billion foreign direct investment in Australia’s manufacturing sector – up 2.9 per cent from 2021

Source: Australian Bureau of Statistics, May 2023
table 15

Thinking about entering the Australian market?

  • Investors typically establish a new company, register as a foreign company or acquire an existing company. Assess your options with our Investor Guide.
  • Austrade is Australia’s national investment promotion agency. We attract and facilitate game-changing foreign direct investment into Australia. Our team of business and investment specialists can connect investors to early-stage opportunities in Australia and provide direct and tailored professional assistance. Find out how we can help.

Your future made in Australia

The Australian Government is working to establish a new A$15 billion financing vehicle to support Australia’s manufacturing industry. The National Reconstruction Fund will drive investments into priority areas of the Australian economy focussed on value adding and capability development to leverage Australia’s natural and competitive strengths. The Australian Government has announced target investment levels for several areas, including:

  • A$1 billion targeted to advanced manufacturing. This investment will help grow advanced manufacturing and support businesses to innovate and move up the technological ladder.
  • A$1.5 billion allocated for medical manufacturing
  • A$1 billion allocated for investment for critical technologies. This could include technologies that underpin advanced manufacturing such as AI and robotics.

It will provide a range of financing options including loans, equity investment and guarantees.

“The National Reconstruction Fund will be the greatest investment in manufacturing capabilities in living memory.”
- Minister for Industry and Science Ed Husic

Video: Join Australia’s advanced manufacturing industry

Australia’s innovative culture, abundance of natural resources and generous funding and incentives are among our manufacturing sector’s competitive advantages.  Watch to find out why there’s never been a more exciting time to be part of Australia’s thriving advanced manufacturing ecosystem.

Fast facts

  • In 2019-20, the manufacturing industry had the second highest business R&D spend of any Australian industry at A$4,763 million. It also recorded the second largest increase in R&D spend, up A$164 million or 4 per cent, from 2017-18 (Australian Bureau of Statistics, 2021).
  • Around 905,000 people were employed in the manufacturing sector in March 2023 – representing about one in every 16 Australian workers (Australian Bureau of Statistics, June 2023).
  • Industry value added (IVA) for manufacturing increased 15.2 per cent (A$16.1billion) in 2021-22 (Source: Australian Bureau of Statistics, May 2023).
  • Gross value added (GVA) of the manufacturing industry grew 2.4 per cent in December 2022 to March 2023 – representing the highest quarterly growth of any sector (Australian Bureau of Statistics, March 2023).

Video: Biotechnology in Australia

An estimated 60 per cent of the world's physical inputs could one day be made with biology – and innovative Australian company, Provectus Algae, is leading the charge. Founder & CEO Nusqe Spanton explains why our innovative culture, natural resources and government support makes Australia’s manufacturing industry globally competitive.

Incentives, grants and support

In addition to the National Reconstruction Fund, support available in Australia includes:

  • The Advanced Manufacturing Growth Centre (AMGC). A not-for-profit organisation led by a board of industry experts, it funds innovative projects with the potential to make the country’s manufacturing industry more productive and competitive. It has co-funded over 140 industry-led collaborative projects with A$137.2 million committed collectively.
  • A National Robotics Strategy under development to boost responsible production and adoption of robotics and automation and support advanced manufacturing.
  • The Research and Development Tax Incentive, a tax offset for companies conducting eligible R&D activities.
  • The Australian Tax Office’s New Investment Engagement Service, which gives tailored guidance on tax issues to businesses planning significant new investments in Australia.

Additional funding and support is available in specific states and territories around Australia:

  • Queensland’s Advanced Manufacturing 10 Year Roadmap and Action Plan outlines the north-eastern state’s plans to grow the sector. Initiatives include:

    • the Industry Partnership Program, which will invest A$350 million over four years in priority sectors including advanced manufacturing.
    • Made in Queensland (MIQ), a A$101.5 million Queensland Government program helping small and medium sized manufacturers to increase international competitiveness, productivity and innovation via the adoption of new technologies.
    • the A$30 million Regional Manufacturing Hubs program.
  • In Victoria, a A$2 billion investment fund called the Breakthrough Victoria Fund aims to cement the south-eastern state as a global innovation hub in key industry sectors including advanced manufacturing.
  • NSW is developing a new Modern Manufacturing Strategy which will set out a roadmap for the state’s modern manufacturing sector – the country’s largest.
  • Tasmania offers a range of grants for businesses in advanced manufacturing.
  • The Northern Territory’s Advanced Manufacturing Ecosystem Fund provides grants to industry-led advanced manufacturing projects in the territory.
  • Western Australia operates the A$16.7 million New Industries Fund (NIF) to support the acceleration of new and emerging businesses in the state, including Innovation Booster Grants to help start-ups and small businesses to commercialise and expand.

Join our thriving ecosystem

Innovators in advanced manufacturing capabilities will find a supportive environment that can help your business expand.

Success stories

A businessman hands over the keys to a hydrogen generator to another businessman with the generator positioned behind them.
Toyota Australia President and CEO Matthew Callachor (left) handing over the keys of the first EODev GEH2® generator assembled at Toyota’s Altona facility to Thiess Group Executive - Assets, Autonomy & Digital, Ramesh Liyanage. Credit: Toyota Australia
Green arrows of the recycling triangle logo displayed on strips of shredded paper
A controller dressed in a white clean suit touches a screen that programs a manufacturing robotic arm
From left: QUT Vice Chancellor Professor Margaret Sheil, Stryker Chair and CEO Kevin Lobo, Queensland Minister for Health, Yvette D’Ath, and UQ Vice Chancellor Professor Deborah Terry.
From left: QUT Vice Chancellor Professor Margaret Sheil, Stryker Chair and CEO Kevin Lobo, Queensland Minister for Health, Yvette D’Ath, and UQ Vice Chancellor Professor Deborah Terry.
Renewable energy farm using a combination of wind turbines and solar PV arrays

Contact an Austrade specialist as an investor as a buyer