In the Australian Government Budget 2020–21 announcement includes the $1.5 billion Modern Manufacturing Strategy.
Manufacturing is critical to a modern Australian economy. It is a vital part of Australia’s response to the COVID-19 crisis. Manufacturing is key to almost every supply chain and adds value across all sectors.
The Strategy will help Australian manufacturers to:
scale-up
improve competitiveness
build more resilient supply chains
Despite our world-class skills and incredible natural assets, manufacturing in Australia has stagnated. Not enough manufacturers are scaling-up in areas that provide good returns.
The Strategy will seize market growth opportunities in our National Manufacturing Priorities.
The Modern Manufacturing Strategy
The Strategy is led by industry, for industry.
The government and industry will grow manufacturing and create jobs by:
getting the economic conditions right for business
making science and technology work for industry
focusing on Australia’s areas of advantage
building national resilience
The vision is for Australia to be recognised as a high-quality and sustainable manufacturing nation that helps to deliver a strong, modern and resilient economy for all Australians.
Modern Manufacturing Initiative (MMI)
The MMI will invest $1.3 billion in large transformative projects. It will encourage private investment and build the scale, connections and capabilities of local manufacturers, allowing them to shift up the value chain and grow.
The MMI will provide co‑funding for large manufacturing projects that have broad sectoral benefits across the National Manufacturing Priorities. It will unlock private sector investment across three targeted streams.
Manufacturing Collaboration Stream
Manufacturing Translation Stream
Manufacturing Integration Stream
All streams will operate on a co-investment basis.
Eligible applicants will be confined to trading corporations. There will be no specific business size requirements. Funding will be focused on supporting businesses to scale.
Find out more about the Modern Manufacturing Intiative and National Manufacturing Priorities.
National Manufacturing Priorities
To turbo-charge Australian manufacturing the Modern Manufacturing Strategy will focus on areas of comparative advantage and strategic importance.
The National Manufacturing Priorities are:
Resources Technology & Critical Minerals Processing
Food & Beverage
Medical Products
Recycling & Clean Energy
Defence
Space
Manufacturing Modernisation Fund (MMF) round two
This $52.8 million investment builds on the popular and successful program to support transformative investments in manufacturing technologies and processes.
The MMF round two is now open for applications until January 21 and aims to address barriers to growth and innovation.
MMF round two will:
co-fund capital investment technology upgrades that help transform businesses
help create and maintain a highly skilled workforce through jobs growth and upskilling
The program will offer:
Co-funding grants of between $100,000 and $1 million, up to 25 per cent of eligible project expenditure.
support for transformative investments in technologies and processes
You are eligible for the program if you:
Are an Australian small to medium manufacturing enterprise (SME) with maximum 199 employees.
Have a minimum of $400,000 in eligible project expenditure.
Are able to identify the level of Australian job creation expected from your project.
Able to demonstrate your project aligns with one or more of the six National Manufacturing Priorities
The Australian Government is building on the success of the $48.3 million round one of the MMF. Round one supported around 200 projects valued at more than $215 million. These projects are expected to create around 2,600 new jobs
Find out more about the Manufacturing Modernisation Fund (MMF) round two.
Supply Chain Resilience Initiative
This $107.2 million investment will allow to better understand supply chains, identify gaps and take action to address them.
Find out more about the Supply Chain Resilience Initiative.
Road maps to recovery and beyond
This will facilitate expert industry-led teams to develop road maps against each of the National Manufacturing Priorities and work together to identify road blocks to growth.
Australia’s manufacturing goals
The vision is to be recognised as a high-quality and sustainable manufacturing nation. Australia want to help deliver a strong, modern and resilient economy for all Australians by 2030.
In 2 years:
create a business environment to support manufacturing jobs and encourage new investment
In 5 years:
support a more industry-focused science and technology system
help to boost productivity, scale and competitiveness
In 10 years:
lock in productive and competitive firms with high-impact sectoral growth
The Minister announced the Strategy on 6 October 2020
Original article: Australian Government
If you need any assistance with the Manufacturing Modernisation Fund or applying for any other government initiatives, please contact us now for a confidential conversation.
Email us at info@hainesconsultinggroup.com.au