Victorian fashion manufacturing at a $1 billion crossroads

Victoria’s fashion manufacturing industry has reached a critical point in its evolution, new research commissioned by the Australian Fashion Council and Epson Australia has revealed.

Compiled by RMIT University, the report titled Victorian TCF (Textile, Clothing, Footwear) Manufacturing: Future Jobs, Technology and Economic Growth details, for the first time, the current and potential value of the almost $1 billion industry.

Although Victorian TCF manufacturing has shed 18 per cent of its value in the past five years, key policy interventions, industry and government can together inject an additional $225 million into the Victorian economy and create a further 1,500 jobs, the report found.

According to the report, this would be particularly beneficial for women in the sector with a survey showing over half of businesses have more than a 60 per cent female workforce (compared to 28 per cent in Australian manufacturing, generally).

In contrast, without preferencing and investing in the sector, on its current trajectory, $98
million of value will be lost by 2030, along with 700 jobs.

In addition, the state will see a loss in technical skills, an increased reliance on overseas supply chains and miss the opportunity to enhance Victoria’s reputation as a source of high-quality, innovative and sustainable products.

This research demonstrates the sector can be transformed into a female-led manufacturing powerhouse, with Victoria at the forefront and identifies five key areas to drive productivity, innovation and higher wage growth.

Recommendations include:

  • Adding TCF manufacturing as a priority within the Made in Victoria statement;
  • Strengthening government procurement policies to increase local content in uniforms,
    workwear and personal protective equipment (PPE) contracts;
  • Developing a revitalised TCF skills and training program to full workforce skill gaps;
  • Co-investment in advanced technology and jobs of the future for a sustainable, circular clothing economy; and
  • Developing a national TCF manufacturing strategy, with Victoria at the forefront.

“It’s imperative to the future of Victoria’s, and more-broadly Australia’s, textiles, clothing and footwear manufacturing industry that we collectively invest in and preference local. This sector is ours to lose. By implementing these very practical and achievable recommendations we can revive the industry, retain sovereign capability in Australia in TCF manufacturing and empower Australian brands to start, remain or even return onshore,” Australian Fashion Council CEO, Jaana Quaintance-James said.

“What has also been made clear is how important swift action is for the many women
employed in fashion manufacturing, and how crucial the role of a female-powered workforce will be in turning its decline around.”

The report also highlights cost efficiencies and reduced waste that can be achieved should a smart-factory model be rolled out. Smart-factories utilise advanced technologies including digital sampling, digital printing and laser cutting to reduce waste and production lead times.

“With the help of new sustainable technology such as the Epson Monna Lisa direct-to-fabric printer, manufacturing locally can be made far more cost effective for brands, enabling made-to-order production, reducing waste to landfill and ensuring cost efficiencies,” Epson managing director Craig Heckenberg said.

“The smart-factory concept and technology to support it, can allow Australian brands to
produce high quality, sustainable Australian-made clothing, for Australian consumers and abroad.”

He added that through adhering to the recommendations in the report, more Australian-owned labels will be able to operate entirely onshore and have the capacity and capability to continue long-term.

The report is available at www.ausfashioncouncil.com

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