It seems that at every turn, local manufacturers and the supply chain are being asked to either cut costs or pay more tax to navigate endless layers of red tape and battle for what’s fair in a global marketplace.
At SEMMA, however, we believe our local jobs and local content should not be compromised for profit.
Under the current system, it doesn’t matter what you produce, the result is the same – less after-tax profit. That means less money for investment, less for hiring that new apprentice or recent graduate. Less for research and development, and less for growth and innovation.
Unless your product is the latest whiz-bang innovation or hot topic, it just doesn’t get the attention or support it deserves.
According to the Australian Bureau of Statistics, in 2024, Victoria had the highest number of businesses closing down – 129,000. Victoria is also the most taxed state in all of Australia at $5408 per person in 2025-26, figures from the Victorian Parliamentary Budget Office show.
Some sectors, such as rail and defence, might seem immune to these economic pressures. But when we look at the recent situation with access to diesel fuel, we all pay more through the supply chain in the end. Understanding the “sector silo” can be the difference when it comes to financial survival for small and medium enterprises (SMEs).
It’s good practice not to focus on one sector, but to have a cross-section of industries that you supply to and vice versa. And it is always good practice to buy locally manufactured goods.
Our local jobs must be safeguarded. SEMMA recently provided a submission to the Federal Government’s Productivity Commission in the application of a safeguard on fabricated structural steel.
Our local suppliers and manufacturers must be protected, or we risk reputations and lives.
New regulations come into play in Victoria on July 1, 2026, and we will have a new Local Jobs Content Commissioner who will need to hit the ground running.
While SEMMA is based in the southeast of Melbourne, we have an eye on the national economy and our place in it. Nationally, manufacturing is the sixth largest industry in Australia, generating $137 billion in value-added output and employing 930,000 people. It contributes 12.4 per cent to our country’s exports and 7.9 per cent to capital expenditure (AI Group, 2024).
SEMMA presented the first of five Australian Manufacturing BLUEPRINT 2026 Election Forum Series in April. Each one of the five forums is focused on one of our five pillars of growth to invigorate industry.
The first pillar was “Economic” and featured financial sector and industry experts, and those from the political sphere, followed by an interactive panel. It was an opportunity for manufacturers to come together to discuss, debate and dissect current policy and offer solutions through our BLUEPRINT platform.
Manufacturers make our economy. It’s time policymakers recognised the significant contribution our manufacturing sector makes to the Australian way of life.
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