Made in Australia: New strategy aims to rebuild local fashion manufacturing

The National Manufacturing Strategy for Australian Fashion and Textiles 2026 - 2036 launch at Parliament House in Canberra
Image supplied

The Australian Fashion Council (AFC) and iconic Aussie bootmaker R.M.Williams have unveiled a National Manufacturing Strategy for Australian Fashion and Textiles 2026–2036. The 10-year plan is designed to rebuild parts of the country’s clothing and textile manufacturing sector.

Launched at Parliament House in Canberra, the strategy is the first coordinated national roadmap to scale Australia’s textile, clothing and footwear manufacturing capability.

Right now, 97 per cent of Australia’s clothing and textile products are made offshore, leaving the industry exposed to supply chain disruptions and global trade volatility.

Instead of trying to compete with mass-production hubs overseas, the strategy focuses on something Australia does well already: premium products, natural fibres and advanced manufacturing.

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Key points

  • Australia imports most of its clothing, with 97% produced offshore
  • The strategy could create more than 1,000 skilled jobs and add $1.4 billion to the economy
  • It aims to grow local manufacturing value from $2.6bn to $2.9bn by 2031

Turning Aussie fibre into Aussie fashion

Australia is already a global heavyweight when it comes to natural fibres like wool and cotton. However, most of it is shipped overseas to be processed and turned into finished products, which Australia then imports back at a much higher price.

Instead of just exporting raw materials, the industry wants to capture more of the value here at home.

“Australia is the world’s largest exporter of greasy wool and a globally significant cotton producer. Yet we export raw fibre and import finished goods at multiples of the original value,” said Samantha Delgos, general manager of the Australian Fashion Council.

“Re-establishing fibre processing and spinning capability restores the missing link in our value chain.”

The fashion sector has serious economic clout

The fashion and textile industry is already a major employer in Australia. According to the strategy, textile, clothing and footwear manufacturing currently employs more than 27,000 Australians, paying over $1.4 billion in wages each year.

Across the broader fashion supply chain, the sector supports nearly 500,000 jobs and generates about $28 billion in economic activity. If the strategy is fully implemented, modelling by RMIT University suggests it could deliver a $1.4 billion economic dividend over five years, create more than 1,000 skilled jobs, and generate $864 million in additional wages.

About half of those new roles are expected to go to women, reflecting the sector’s already strong female workforce.

Epson Australia Managing Director Craig Heckenberg, Samantha Delgos, General Manager, Australian Fashion Council, Marianne Perkovic, Executive Chair, Australian Fashion Council and Epson Australia Corporate Marketing Manager, Priscilla Dickason

Epson Australia Managing Director Craig Heckenberg, Samantha Delgos, General Manager, Australian Fashion Council, Marianne Perkovic, Executive Chair, Australian Fashion Council and Epson Australia Corporate Marketing Manager, Priscilla Dickason. Image supplied

The three pillars of the plan

The strategy centres on three big ideas designed to strengthen the sector.

First, create demand for Australian-made products, including through government procurement and clearer “Australian-made” branding.

Second, build the workforce of the future, with new training pathways and skills transfer programs as the current manufacturing workforce ages.

And third, accelerate advanced manufacturing, including investment in modern machinery, fibre processing and circular production technologies.

Marianne Perkovic, executive chair of the Australian Fashion Council, said the strategy gives the industry a clear roadmap for the decade ahead.

“This Strategy sets out a clear roadmap for rebuilding a globally competitive Australian fashion and textile manufacturing sector,” she said. “With the right coordination across industry, skills and procurement policy, we have a real opportunity to strengthen sovereign capability, create skilled jobs and position Australia as a leader in premium manufacturing.”

Backing from a beloved brand

Few brands understand local manufacturing better than R.M.Williams.The company has been producing boots in Adelaide for more than 90 years, employing skilled craftspeople and apprentices while competing with global brands.

Chief operating officer Tara Moses says the industry needs a cycle of investment and demand to really take off.

“What’s needed now is to activate a flywheel: demand enables investment in skills, skills enable advanced manufacturing, and technology allows Australian manufacturers to scale while maintaining quality,” Moses said.

Smart factories and future tech

Technology will also play a big role in the sector’s future. Printer and digital manufacturing company Epson, which partnered on the strategy, is exploring the potential for shared manufacturing hubs and “smart factory” models that could help smaller brands scale production locally.

Epson Australia managing director Craig Heckenberg said digital manufacturing could unlock new opportunities for the sector.

“This National Manufacturing Strategy represents an important step forward for Australia’s fashion and textile industry,” he said.

“Epson is proud to support this initiative and help accelerate the adoption of advanced digital technologies that can drive greater sustainability, unlock new opportunities, and create the jobs of the future.”

Where to from here?

The strategy will be led by the Australian Fashion Council and rolled out in stages. Progress will first be assessed in 2029, focusing on foundational changes such as procurement reform, skills programs and manufacturing infrastructure. A second review in 2036 will measure whether the industry has achieved its bigger ambition: a globally competitive, technology-enabled fashion manufacturing sector built right here in Australia.

In an industry long dominated by offshore production, the strategy is a lifeline.  If successful, textiles of the future might just be made here rather than elsewhere.

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Cec is a content creator, director, producer and journalist with over 25 years of experience. She is the editor of Business Builders and Flying Solo, the executive producer of Kochie's Business Builders TV show on the 7 network, and the host of the Flying Solo and First Act podcasts.
She was the founding editor of Sydney street press The Brag and has worked as the editor on titles as diverse as SX, CULT, Better Pictures, Total Rock, MTV, fasterlouder, mynikonlife and Fantastic Living.
She has extensive experience working as a news journalist, covering all the issues that matter in the small business, political, health and LGBTIQ arenas. She has been a presenter for FBI radio and OutTV.

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