Australia’s supply chain and manufacturing sectors are entering a new era, driven by global shifts and emerging strategic priorities. Recent research from the World Economic Forum and MHD Supply Chain highlights four key trends shaping this transformation.
1. Regionalisation and Resilience
Global manufacturers are moving beyond cost as the sole driver of decision making. According to the World Economic Forum, over 90% of manufacturers are regionalising supply chains, with two thirds adopting a “power-of-two” sourcing strategy to strengthen resilience (World Economic Forum, 2024a). Australian businesses are following suit, diversifying suppliers and investing in regionally based capabilities to improve operational continuity.
2. Infrastructure and Sustainable Development
Infrastructure plays a vital role in enabling modern manufacturing. The Beyond Cost report identifies infrastructure as one of seven critical readiness factors that influence global investment (World Economic Forum, 2024a). In Australia, we see this reflected in developments such as Stockland’s 46,000-square-metre warehouse expansion in Melbourne, which features energy efficient construction and smart logistics design (MHD Supply Chain, 2025a).
3. Advanced Technology Integration
Digitisation, automation, and artificial intelligence are transforming supply chains worldwide. The World Economic Forum’s Global Lighthouse Network demonstrates that technology led innovation significantly improves productivity and sustainability (World Economic Forum, 2024c). Australian manufacturers are increasingly embracing these technologies to remain competitive and agile in a fast moving global environment.
4. ESG as a Strategic Priority
Environmental, Social and Governance (ESG) factors are no longer optional. Transparent governance, sustainability commitments, and ethical labour practices are becoming central to investment and procurement decisions (World Economic Forum, 2024a). Australian organisations are aligning strategies accordingly, recognising ESG as a key differentiator in global supply networks.
Australia’s supply chain and manufacturing industries are evolving through regionalisation, infrastructure modernisation, tech adoption, and ESG alignment—positioning the sector to thrive in a fluctuating global landscape and sustainability conscious future.
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References
MHD Supply Chain, 2025a. Stockland opens new warehouses at Altona Industrial Estate. [online] 8 April. Available at: https://mhdsupplychain.com.au/2025/04/08/stockland-opens-new-warehouses-at-altona-industrial-estate/
MHD Supply Chain, 2025b. Key findings on the future of supply chains. [online] 8 April. Available at: https://mhdsupplychain.com.au/2025/04/08/key-findings-on-the-future-of-supply-chains/
World Economic Forum, 2024a. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains. [pdf] December. Available at: https://reports.weforum.org/docs/WEF_Beyond_Cost_2024.pdf
World Economic Forum, 2024b. New Report Introduces Seven Readiness Factors for Countries to Grow Their Share of Global Supply Chains as 90% of Manufacturers Regionalize. [online] 10 December. Available at: https://www.weforum.org/press/2024/12/new-report-introduces-seven-readiness-factors-for-countries-to-grow-their-share-of-global-supply-chains-as-90-of-manufacturers-regionalize/
World Economic Forum, 2024c. Global Lighthouse Network: Transforming Advanced Manufacturing. [online] 11 January. Available at: https://www.weforum.org/stories/2024/01/advanced-tecnologies-manufacturing-factories-scaling-innovations/
