The Australian Fashion Council (AFC) has opened a final industry-wide survey as it moves into the last validation stage of Australia’s first National Manufacturing Strategy (NMS), ahead of its scheduled launch at Parliament House in Canberra on March 12.
The survey follows the release of the AFC Industry Consultation Findings paper, which distils findings from 14 national consultations conducted over the past year in collaboration with R.M.Williams. More than 300 stakeholders across brands, manufacturers, fibre producers, educators, supply-chain specialists, technology providers and First Nations businesses took part, contributing over 1,000 initiatives and votes to shape the draft strategy.
The consultations were designed to test what policy settings, investment levers and structural reforms are required to rebuild Australia’s local clothing, textile and footwear manufacturing base — a sector that contributes $27.2 billion annually to the economy, employs almost 500,000 people and accounts for 1.5 per cent of national GDP.
Sector under pressure
Across all consultations, participants consistently described a sector at a critical juncture. While Australia’s broader fashion and textile industry remains economically significant, local manufacturing has become increasingly fragile. Participants highlighted that 97 per cent of fashion and textile products sold domestically are now made offshore, leaving Australia highly exposed to global supply-chain shocks, currency volatility and rising geopolitical risk.
Although the local TCF manufacturing base contributes more than $2.6 billion to the economy and employs over 28,000 people — more than half of them women — businesses warned that capability is being steadily eroded by factory closures, ageing infrastructure and declining skills transfer.
Workforce shortages emerged as one of the most urgent risks. Manufacturers reported difficulty recruiting and retaining workers with core technical skills such as sewing, cutting, patternmaking and machine maintenance, alongside growing gaps in digital production, automation and advanced manufacturing capabilities. An ageing workforce and limited apprenticeship pathways were cited as compounding risks, particularly for SMEs and regional operators.
Technology and capability gaps
Technology adoption was another dominant theme, with consultations revealing widespread reliance on outdated machinery and limited access to capital for modernisation. Participants warned that without targeted co-investment, Australian manufacturers will struggle to compete with offshore producers operating highly automated, digitally integrated facilities.
The absence of early-stage processing capability — particularly scouring and yarn spinning — was repeatedly raised as a structural weakness. Industry participants argued that without these capabilities, Australia is unable to fully capitalise on its strengths in cotton and wool production or build a viable fibre-to-finished-product manufacturing ecosystem.
Shared priorities nationally
Despite regional differences, the consultations revealed strong national alignment around several priority actions. These included using government procurement as a demand lever for Australian-made uniforms, PPE and workwear; rebuilding technical training and apprenticeships aligned to industry needs; accelerating investment in automation and advanced manufacturing technologies; and establishing shared manufacturing hubs to improve access to equipment, training and collaboration.
Participants also called for clearer and more credible Australian-made labelling and a nationally backed consumer campaign to lift awareness, trust and willingness to pay for locally produced clothing and textiles.
Final industry validation
The AFC said the newly opened survey is intended to test whether the proposed priorities and actions outlined in the Strategy reflect current commercial realities and are practical to implement. The survey is open to the entire industry, not just AFC members, and will directly inform the final version of the National Manufacturing Strategy.
The Strategy is being developed in partnership with R.M. Williams and aligns with broader federal and state priorities including Future Made in Australia, sovereign capability, women’s economic participation and regional job creation.
The final National Manufacturing Strategy will be delivered at Parliament House in March 2026, marking a shift from consultation to implementation and advocacy.