The Australian Fashion Council (AFC) has opened a final, industry-wide validation survey as it enters the last stage of developing Australia’s first National Manufacturing Strategy (NMS) for clothing, textiles, and footwear.
The Strategy is scheduled to be launched at Parliament House on March 12, 2026, marking a shift from consultation to implementation.
Why This Matters
The Strategy addresses a structural crisis in Australia’s textile, clothing, and footwear (TCF) manufacturing sector:
- 97% of fashion and textile products sold in Australia are now made offshore
- Local manufacturing capability is shrinking due to:
- Factory closures
- Ageing infrastructure
- Loss of skilled labour
- Australia is increasingly exposed to global supply-chain shocks, currency volatility, and geopolitical risk
Despite this, the broader sector:
- Contributes $27.2 billion annually
- Employs ~500,000 people
- Accounts for 1.5% of national GDP
How the Strategy Was Built
- Based on 14 national consultations over the past year
- Conducted with R.M. Williams
- Involved:
- 300+ stakeholders
- Brands, manufacturers, fibre producers
- Educators, technology providers
- Supply-chain specialists
- First Nations businesses
- Generated 1,000+ initiatives and votes
The findings were distilled into the AFC Industry Consultation Findings paper, now being validated through the final survey.
Key Problems Identified
- Workforce Crisis
- Severe shortages in:
- Sewing, cutting, patternmaking
- Machine maintenance
- Digital and automated manufacturing skills
- Ageing workforce + weak apprenticeship pathways
- SMEs and regional manufacturers most exposed
- Over 50% of the local manufacturing workforce are women
- Technology & Investment Gaps
- Heavy reliance on outdated machinery
- Limited access to capital for automation and digitalisation
- Risk of falling permanently behind offshore competitors operating advanced, automated factories
- Broken Fibre-to-Fashion Chain
- Lack of early-stage processing (e.g. scouring, yarn spinning)
- Australia cannot fully leverage its strengths in cotton and wool
- Weak domestic value-chain integration
Shared National Priorities (Strong Consensus)
Across regions, stakeholders broadly agreed on the following actions:
- Government procurement as a demand lever
(uniforms, PPE, workwear made in Australia) - Rebuilding technical training and apprenticeships
- Co-investment in automation and advanced manufacturing
- Shared manufacturing hubs for access to equipment and skills
- Clearer Australian-made labelling
- A national consumer campaign to rebuild trust and willingness to pay for locally made products
What the Final Survey Does
- Tests whether proposed priorities are:
- Commercially realistic
- Practically implementable
- Open to the entire industry, not just AFC members
- Directly shapes the final National Manufacturing Strategy
Strategic Alignment
The Strategy aligns with broader policy agendas:
- Future Made in Australia
- Sovereign manufacturing capability
- Women’s economic participation
- Regional employment and industry resilience
What Comes Next
- March 2026: Strategy formally delivered at Parliament House
- Signals a transition from:
- Diagnosis → Execution
- Consultation → Advocacy and policy action
If implemented effectively, the NMS could mark the first serious attempt in decades to rebuild Australia’s fashion and textile manufacturing base as a strategic, resilient, and future-facing industry.
