2020-21 Budget: Government invests $1.5 billion in manufacturing strategy
The Government announced its $1.5 billion investment in the Modern Manufacturing Strategy as part of the 2020-21 Federal Budget.
The Strategy aims to harness Australian manufacturing capability and drive economic recovery and future resilience in the country. It envisions to build the country as a high-quality and sustainable manufacturing nation that helps to deliver a strong, modern and resilient economy for all citizens by 2030.
In the announcement, the government emphasizes how manufacturing is critical to a modern Australian economy and a vital part of the country’s response to the COVID-19 crisis.
“A resilient and competitive manufacturing sector should be at the heart of a modern Australian economy and this Strategy will create jobs, drive our economy forward and make Australia more secure,” said Karen Andrews, Minister for Industry, Science and Technology.
Manufacturing was also stressed as key to almost every supply chain and adds value across all sectors.
A central pillar in the the government’s JobMaker plan, the $1.5 billion Strategy will help Australian manufacturers to scale-up, improve competitivenes and build more resilient supply chains.
The government revealed that despite world-class skills and incredible natural assets in the country, manufacturing in Australia has stagnated. Not enough manufacturers are scaling-up in areas that provide good returns.
Through the Strategy, the government will aim to seize market growth opportunities in our National Manufacturing Priorities.
Four key initiatives are outlined in Strategy with immediate and long-term impacts, which are the Modern Manufacturing Initiative (MMI), the Supply Chain Resilience Initiative, the Manufacturing Modernisation Fund (MMF) round two and road maps to recovery and beyond.
The Modern Manufacturing Strategy will be led by industry, for industry. With the combined efforts of both industry and government, the Strategy will grow manufacturing and create jobs through getting the economic conditions right for business, making science and technology work for industry, focusing on Australia’s areas of advantage and building national resilience.
Source: Australian Government