Australian Manufacturing Support Is Failing the Businesses We Rely On
Australia talks a lot about supporting local technology and manufacturing.
But on the ground, we’re quietly pushing these businesses offshore.
Not that long ago, I spoke with a manufacturer based in regional NSW. They export the majority of their product to the US. Demand is strong. They’ve just launched an upgraded product and orders are there.
The problem isn’t sales.
It’s working capital.
To scale, they need cash to keep inventory moving:
- A container in the US so customers can be supplied quickly
- A container on the water en route to the US
- A container in NSW being filled and prepared for export
For a small manufacturer, that’s a significant cash commitment.
So, they looked for support.
Export Finance Australia?
👉 “Come back in six months.”
Their bank?
👉 No appetite for lending against cashflow.
What about the Export Market Development Grant (EMDG)?
Anyone who’s worked with this program recently knows it’s a shadow of what it once was. In the last round, the most popular stream closed in 3.5 hours. This business missed out entirely, as did many others.
Then there’s the cost of operating in Australia.
Electricity prices?
In Texas, where the owner previously operated, power costs are roughly one-third of Australia’s. For an energy-intensive manufacturer, that’s not a rounding error.
Tax settings?
Another structural disadvantage compared to key US states.
The owner is exploring other funding options, but the bigger issue is mindset.
Right now, the conclusion forming is simple:
“It’s not worth the friction or the constraints to stay.”
They are seriously considering moving manufacturing to the US.
That’s another regional business.
Another skilled workforce.
Another export capability lost.
This is not an isolated story.
If Australia is serious about productivity, resilience, and advanced manufacturing, we need to bridge the gap between policy intent and commercial reality.
I call on:
- Dr Anne Aly – Minister for Small Business
- Tim Ayres – Minister for Industry and Innovation
- Kristy McBain MP – Minister for Regional Development
to look closely at how businesses like this can actually survive and scale here, not just in theory.
And to Jim Chalmers: productivity gains won’t come from watching capable businesses quietly pack up and leave.
Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.
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