The Australian Fashion Council (AFC) has teamed up with textile printing business Epson Australia to unpack the potential of AI and digitally powered smart factories to advance local manufacturing capabilities.
Both organisations are seeking a qualified research partner to conduct a six-month feasibility study that will create a detailed blueprint for a pilot facility combining digital design and print, automation, and AI technologies to drive local production.
This comes one week after the AFC announced its partnership with R.M. Williams to develop a National Manufacturing Strategy for the fashion and textile industry.
According to the two organisation, a clothing smart factory is an automated production facility that enables on-demand, customisable garment manufacturing with minimal waste and fast turnaround times.
By bringing together digital design and print and advanced manufacturing technologies with AI-powered systems and analytics, both organisations claim smart factories enable quick, flexible production runs that respond rapidly to market trends without the high minimum order quantities that can result in overproduction.
"This smart factory initiative addresses multiple challenges facing Australian fashion manufacturing, from supply chain disruptions to skills shortages,” AFC CEO Jaana Quaintance-James said.
“Our sector is at a critical tipping point. The feasibility study will validate whether a smart factory pilot program can be commercially viable while delivering broader benefits as part of an integrated advanced manufacturing ecosystem."
Research commissioned by the AFC has estimated that for every $1 million invested in returning production to Australia, approximately $1.2 million in economic returns could be generated through job creation, technology adoption, strengthened local supply chains, and reduced import dependencies.
Epson Australia MD Craig Heckenberg said the company is committed to supporting innovation in Australian manufacturing.
“Our partnership with the AFC and this blueprint and initiative will help local brands, big and small, have access to smart manufacturing capabilities that match their scale and ambition,” Heckenberg said.
“For smaller brands, it means producing high quality garments locally, on demand. For larger companies it offers a blueprint to implement smart factory practices within their operations.
“As a result, we see a future where Australian made sustainable fashion will set the global standard, leading not just in design, but also in ethical, high-tech manufacturing.”
The six-month study will assess market viability, technical requirements, operational models, financial projections, and social and environmental considerations to create a detailed implementation roadmap.
"This isn't just a research exercise, it's the foundation for action," Quaintance-James said.
"Following completion of the study toward the end of 2025, we'll develop a detailed implementation plan to secure investment partnerships, finalise specifications for an initial pilot, develop training programs with educational institutions, and create a governance framework to maximise benefits to the Australian fashion industry."
Heckenberg added that the smart factory concept represents a transformative shift toward ‘rapid agile’ on-demand manufacturing.
"Rather than speculative production, this approach enables creating products in response to actual consumer demand, simultaneously addressing profitability challenges and environmental concerns."
The initiative aims to retain sovereign manufacturing capability, rebuild local supply chains, drive digital innovation, and upskill the workforce through educational partnerships.
"These advancements will deliver far-reaching economic and community benefits - from job creation and skills development to regional growth and greater participation for women in technology-driven manufacturing roles," Quaintance-James said.
Those interested in being part of the research are being encouraged to reach out to the AFC and submit an expression of interest by June 15, 2025.