Following the federal government cabinet reshuffle on the weekend, the industry portfolio and minister responsible have changed. Angus Taylor MP has been confirmed as Minister for Industry, Energy, and Emissions Reduction. Science and Technology have been split from the portfolio and allocated to Melissa Price.
“I am honoured to serve as minister… I will build on the Morrison Government’s work to promote and support Australian industry, to ensure we have a strong, local manufacturing sector that is growing and creating more jobs,” Taylor said.
National employer association Ai Group chief executive Innes Willcox congratulated the ministers and reiterated the portfolio’s importance.
“This portfolio will be critically important for business to help drive the post-COVID-19 recovery and to facilitate the resumption of productivity growth that is required to underwrite sustained improvements in Australian living standards,” Willox said.
“Employers will be looking to the Minister to deliver on an agenda that helps drive local investment, job creation and smart sovereignty, as the economy recovers from the COVID-downturn and then, beyond recovery, as we gear for the future development of our economy.”
Willox said separating industry from science and technology would create challenges as the two work “hand-in-hand”.
“One of the challenges of the new arrangements will be to ensure that we continue to make progress in broadening and deepening collaboration between industry and our science and technology organisations,” he said.
On September 23, while acting in the role, Taylor said more than 91,000 manufacturing jobs have been created in the last three months.
“ABS Labour Force figures show there are now 80,000 more jobs in manufacturing than there was at the start of the pandemic.
“Although we know current COVID restrictions are having an impact on the economy, this strong result for the quarter takes manufacturing jobs above pre-COVID levels and bodes well for our road out of COVID-19 and shows the resilience of our economy,” Taylor said.
He added that this was the first-time manufacturing employment has been above one million jobs since 2009.
“The Modern Manufacturing Strategy is all about government backing our manufacturers to back themselves. It sends a clear signal to the industry, and businesses are responding,” Taylor said.
Meanwhile, the Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) eased by 0.4 points to 51.2 in September, indicating a weaker rate of expansion across manufacturing and effectively stalling a solid period of recovery since late 2020, Ai Group said.
Willox said: "The recovery in the manufacturing sector over the past year all-but-stalled in September as the impacts of lockdowns and border closures constrained activity in the two largest states.
“While sales and employment were both lower in September, there are bright spots on the horizon with new orders continuing to expand (although modestly) and production and finished stocks both rising at a faster pace than in August. Manufacturers are hoping that the prospect of restrictions being wound back will see a strong lift in performance over coming months.”
The PMI said the flat performance in the food and beverage sector and contractions in the machinery & equipment and TCF, and paper & printing sectors failed to offset the return to growth in the building and metal products sectors. Contractions were concentrated in the south-east corner of the country where outbreaks and lockdowns have been more severe.
Food and beverages stalled (down 6.0 points to 50.5), while machinery and equipment (down 2.0 points to 48.4)
Senate Inquiry into manufacturing underway
Meanwhile, the Senate Standing Committees on Economics has begun its inquiry into the Australian manufacturing industry with the following terms of reference:
- what manufacturing capacities Australia requires for economic growth, national resilience, rising living standards for all Australians and security in our region;
- the role that the Australian manufacturing industry has played, is playing and will play in the future;
- the drivers of growth in manufacturing in Australia and around the world;
- the strengths of Australia’s existing manufacturing industry and opportunities for its development and expansion;
- the sectors in which Australian manufacturers enjoy a natural advantage in energy, access to primary resources and skilled workers over international competitors, and how to capitalise on those advantages;
- identifying new areas in which the Australian manufacturing industry can establish itself as a global leader;
- the role that government can play in assisting our domestic manufacturing industry, with specific regard to:
- research and development;
- attracting investment;
- supply chain support;
- government procurement;
- trade policy;
- skills and training; and
- the opportunity for reliable, cheap, renewable energy to keep Australia’s manufactured exports competitive in a carbon-constrained global economy and the role that our manufacturing industry can play in delivering the reliable, cheap, renewable energy that is needed.
The committee is due to report by 24 November. You can follow its progress here.
