Insights from the Australian Fashion Council's Local Manufacturing Forum - Adelaide, May 6, 2025
In a landmark development announced last week, the Australian Fashion Council (AFC) and R.M. Williams have formed a strategic partnership to develop Australia's first-ever National Manufacturing Strategy for the fashion and textile industry. This nationwide initiative aims to rebuild and future-proof the sector, unlock Australian-made capability and create a globally competitive industry powered by innovation, advanced technology and next-generation skills.
Jaana Quaintance-James, CEO of the AFC, emphasised the critical timing of this initiative: "Our sector is at a critical tipping point. Through deep industry consultation, we've identified an urgent need for a National Manufacturing Strategy - one that safeguards jobs, restores technical capability, and strengthens our global competitiveness." (AFC 2025)
The strategy will address three interconnected challenges:
Safeguarding export contribution: Protecting the industry's $7.2 billion export contribution in an increasingly unpredictable global landscape
Addressing the skills crisis: Tackling widespread technical shortages, with the median age of skilled manufacturing workers now 57
Preserving women's economic participation: Ensuring continued opportunities in an industry where 77% of the 500,000 employees are women
According to research commissioned by the AFC, every $1 million invested in returning production to Australia could generate approximately $1.2 million in economic returns through job creation, technology adoption, strengthened local supply chains, and reduced import dependencies.
The Current Landscape: Insights from the AFC Forum
The Australian Fashion Council's Local Manufacturing Smart Factory Forum in Adelaide (Mondy 5th May 2025) marked the first of six structured industry consultations that will shape the National Manufacturing Strategy. These sessions will take place across Sydney, Melbourne, Brisbane, Perth, Adelaide, and online throughout 2025, bringing together manufacturers, brands and educators to map capabilities, identify critical gaps, and develop targeted recommendations.
I was invited to participate in the first forum in Adelaide and what follows are my thoughts on the day. I will be interested to see whether they reflect the broader national conversation.
The forum on Monday 5th April was held at the R.M. Williams factory in the north of Adelaide. The forum included a tour of the site, which was truly inspiring. The forum brought together industry leaders to address the challenges and opportunities in local textile manufacturing, with a focus on uniting what has historically been a fragmented industry.
While local manufacturing has been discussed over the years, it would seem that several key factors make this an ideal moment for reinvigorating local manufacturing.
Disruptions to global supply chains (particularly over the Covid period) have highlighted the vulnerabilities of overseas production dependencies. At the same time, there is a growing recognition from Australian consumers of the value of locally-made products. Interestingly, there seem to be better connections between brands and manufacturers, thereby creating a more integrated industry infrastructure.
At the investment end, we are increasingly seeing investment in innovation and technology across commercial manufacturing hubs and educational hubs that act as pathways to advanced manufacturing (see for instance Flinders Factory of the Future).
Finally, there is a broader interest in the provenance and storytelling in consumer purchasing decisions, something that I have experienced firsthand when selling my knitwear both online and on site. I wonder whether there is a shift towards smaller businesses moving into spaces traditionally dominated by high volume production.
Challenges to Address
Despite these positive trends, significant challenges remain:
Cost competitiveness: 41% of businesses surveyed cited costs relative to overseas markets as a major concern, with brands feeling pressured toward cost-driven procurement
Skills gaps: 56% of manufacturers reported severe skills shortages, particularly for machine operators, TCF technicians, and trade workers with specialized expertise
Ageing workforce: The industry has historically relied on migrant communities, with concerns about knowledge transfer to younger generations
Technical education gaps: Young designers enter the industry with design knowledge but lacking technical manufacturing skills
Regulatory classification issues: ANSCO codes have consolidated TCF roles into broader categories, potentially undermining recognition of specialized skills
The forum highlighted the need for manufacturers to balance small-run collections for innovative designers with higher volume production that provides stability. Finding this middle ground remains challenging but essential for sustainable business models.
Innovative Approaches and Success Stories
The forum highlighted several innovative approaches and success stories within the Australian fashion manufacturing sector and what follows are my thoughts on some of those opportunities.
Learning from Other Industries
I live moments away from the wine industry on the Fleurieu Peninsula. Over the past 40 years the wine industry has remade itself here and now produces some of the industry’s most successful premium Australian brands, popular both locally and globally. For example, Hither and Yon have led in organic and sustainable farming practices while small batch wine labels have taken advantage of the three contract processing plants in the region, allowing them to focus their attention on creating experiences to consume their bespoke wines, connected to tourism.
Manufacturing as a Service
Manufacturing-as-a-Service is an idea that we could explore given how successful it has been for wine. In this model, production capacity becomes a flexible resource rather than a fixed asset allowing brands to access manufacturing capabilities without major capital investments, while allowing manufacturers to serve multiple clients efficiently .I have watched how this model has built a vibrant wine growing and tasting region and believe that textile manufacturing could tap into similar experiential opportunities if infrastructure was available to enable brands to manufacture short and targeted runs. In order to do so, I believe that there are a number of interconnected policies that must be considered including:
- Skills Development and Training
- Consumer facing Certification and Transparency
- Government Procurement Policy
- Business Model Innovation
- Creative Industries and Tourism Policies
- Technology Investment
Conclusion
The landmark partnership between the AFC and R.M. Williams to develop the National Manufacturing Strategy offers a structured approach to addressing the industry's challenges and capitalizing on emerging opportunities.
By focusing on high-value, quality production that leverages our unique materials, skills, and innovative approaches like Manufacturing-as-a-Service, we can position Australia as a leader in the next generation of fashion manufacturing.
The path forward requires collaborative effort across industry, government, and educational institutions, but the potential rewards include a more resilient industry, improved environmental outcomes and the creation of meaningful employment opportunities. Through strategic investment in skills, technology and new business models, we can build a fashion manufacturing ecosystem that thrives in the global marketplace while honouring Australia's rich textile heritage.
I look forward to hearing more!
This blog post was prepared following the Australian Fashion Council Local Manufacturing Forum in Adelaide, May 6, 2025, and incorporates information from the AFC and R.M. Williams' announcement of their partnership to develop Australia's first National Manufacturing Strategy for the fashion and textile industry.