The local manufacturing industry is always an interesting topic of debate. Many industry experts have predicted a decline in local manufacturing as international options become more viable, but fortunately for Victorians this is not the case.
According to the Australian Industry Group’s (AIG) monthly Australian Performance of Manufacturing Index (PMI) Victoria has recorded another month of growth in manufacturing, making it 15 months in a row that the industry has grown. With so many cheaper manufacturing options available internationally, just why is it that manufacturing in Victoria continues to grow? According to AIG CEO Innes Willox it is due to three main factors “resilience, the benefits of diversification and a supportive government.”
One of the biggest factors is government support, with the Victorian government spending more than $120 million supporting the local industry. This support has helped generate more than 5,000 jobs and roughly $1.4 billion in private investment. A large part of this support comes in the form of the grants for companies that want to “implement new manufacturing technologies and processes in their Victorian operations, providing a critical foundation for growth.”
These grants are available to companies that are implementing new manufacturing technologies and processes in their Victorian operations and also fit into three criteria (1) the manufacturing will generate sustainable new local jobs, including high-value jobs, (2) these new processes will improve productivity and competitiveness and finally (3) they will target new growth opportunities.
Programs like this have helped the local manufacturing get tow here it is today, with the latest figures seeing it contribute $27.7 billion to the Victorian economy, with $18.16 billion worth of manufactured goods being exported in 2016-17. Given the large part it plays in the Victorian economy it should surprise no one to learn that the industry employs over 286,000 people across roughly 13,000 businesses.
At Haines we are experienced at guiding businesses through the government grant process, and have helped multiple clients expand their business with the help of a government grant. Get in contact with us today if you think we could help grow your business.