The Future of Australian Manufacturing Jobs: Rebuilding with Private Investment

Australia’s manufacturing sector has reached a critical juncture. Once a major employer, supporting nearly one in four jobs in the 1960s, it now contributes just 5.1% to GDP, with employment steadily declining (MacroBusiness, 2025).

Recent closures of major manufacturing employers such as Qenos (plastics), Incitec Pivot (fertilisers), and Oceania Glass (glass) have resulted in the direct loss of thousands of jobs. Qenos’s 2024 closure alone affected approximately 700 workers across its Botany and Altona sites (Packaging News, 2024). Incitec Pivot shut its Gibson Island plant due to unaffordable energy, and will soon close its Geelong plant, impacting another 80 workers (Herald Sun, 2024). Oceania Glass’s 2025 collapse eliminated up to 250 jobs (Dandenong Star Journal, 2025).

A growing manufacturing sector not only creates full time roles for skilled trades, engineers, and production workers, but also delivers long term employment and skill development pathways through apprenticeships, cadetships, and technical training programs, particularly benefiting young Australians and regional communities.

While government programs such as Future Made in Australia have helped support strategic industries, Australia cannot rely too heavily on public spending to secure the future of industrial employment. A sustainable approach must focus on encouraging and enabling private sector investment, which is the true engine of job creation.

To reverse the employment decline in manufacturing, Australia needs to focus on:

The Federal Government’s Productivity Roundtable in August 2025 offers a valuable opportunity to refocus industrial policy on supporting business led employment growth. Productivity reform, not perpetual fiscal stimulus, must drive the next phase of job creation.