Manufacturing Activity on the Rise

Australia’s manufacturing sector is experiencing a steady resurgence, with renewed investment, growing export demand, and government support helping to reshape the industry for a more resilient and sustainable future. As of early 2025, indicators suggest cautious optimism—driven by key sectors like construction materials, advanced manufacturing, and clean energy technology.

Positive Growth in Manufacturing Output

According to the most recent Australian Performance of Manufacturing Index (PMI) from the Australian Industry Group (Ai Group), the sector showed modest expansion in Q1 2025, with the index consistently trending above the critical 50-point threshold. (Readings above 50 indicate expansion, while below 50 signal contraction.)

Key areas of growth include:

• Construction materials – buoyed by infrastructure and housing investments
• Food and beverage manufacturing – supported by export demand and regional processing hubs
• Transport and defence equipment – underpinned by long-term national projects
• Clean energy manufacturing – such as solar components, batteries, and green hydrogen infrastructure

Challenges Still Remain

Despite this growth, the sector continues to face headwinds. High operational costs, a strong Australian dollar, and skills shortages are putting pressure on manufacturers—particularly small to medium enterprises (SMEs).

In some sub-sectors—such as clothing and textiles, traditional wood products, and printed media—demand has remained flat or declined as global competition and digital disruption reshape the market.

Employment in manufacturing has also yet to fully recover from previous decades of decline. While automation and robotics are improving productivity, they also shift the nature of roles available—from hands-on fabrication to programming, maintenance, and quality assurance roles.

Growth Opportunities in Advanced and Sustainable Manufacturing

The Australian Government’s Modern Manufacturing Strategy continues to support priority areas including:

• Advanced manufacturing and robotics
• Medical products and diagnostics
• Food and beverage production
• Recycling and clean energy

This policy focus is creating new career pathways across engineering, automation, logistics, environmental science, and industrial design. If you’re looking to enter or upskill in the industry, it’s a smart time to align with future-focused areas.

State-by-State Activity

Manufacturing growth has been strongest in:

• South Australia and Victoria – driven by defence, automotive innovation, and renewable energy projects
• Queensland – where regional food processing and infrastructure manufacturing are expanding
• Western Australia – supporting mining technology and energy exports

New South Wales and Tasmania remain steady, with growth focused on niche manufacturing and value-added exports.

Start a Career in Manufacturing or Upskill for What’s Next

Whether you’re new to the workforce, shifting careers, or aiming to adapt to industry innovation, there are many vocational and higher education pathways available. Consider training in:

• Engineering and trades (e.g., metal fabrication, machining, mechatronics)
• Automation, robotics, and industrial technology
• Supply chain and manufacturing logistics
• Sustainable manufacturing and environmental compliance

Many qualifications are offered online and are eligible for government subsidies under Skills Reform initiatives.

Manufacturing Is Evolving—Now’s the Time to Get Involved

Australia’s manufacturing industry is no longer just about traditional factory work. It’s modern, tech-driven, and sustainability-focused—opening the door to a wide range of skilled, high-demand careers.

As the sector continues to grow and diversify, there’s strong demand for workers with the right training in automation, clean energy, logistics, and production technologies. Whether you’re upskilling, retraining, or starting fresh, now is a great time to position yourself for the future of Australian manufacturing.

Explore online manufacturing and technology courses today and take the next step toward a future-ready career.