EPSON and AFC research shows Victorian fashion manufacturing at a $1 billion crossroads

New research commissioned by The Australian Fashion Council and Epson Australia has revealed that Victoria’s fashion manufacturing industry has reached a critical point in its evolution.

A report compiled by RMIT University, ‘Victorian TCF (Textile, Clothing, Footwear) Manufacturing: Future Jobs, Technology and Economic Growth,’ details the current and potential value of the almost $1 billion industry. 

The research indicates that even though Victorian TCF manufacturing has shed 18% of its value in the past five years, critical policy interventions, industry and government can together inject an additional $225m into the Victorian economy and create a further 1,500 jobs. This would be particularly beneficial for women in the sector, with a survey showing that over half of businesses have a female workforce of more than 60% (compared to 28% in Australian manufacturing).

In contrast, without preferencing and investing in the sector, on its current trajectory, $98 million of value will be lost by 2030, along with 700 jobs. In addition, the State will see a loss in technical skills and an increased reliance on overseas supply chains and miss the opportunity to enhance Victoria's reputation as a source of high-quality, innovative, and sustainable products.

This research demonstrates that the sector can be transformed into a female-led manufacturing powerhouse, with Victoria at the forefront. It also identifies five key areas to drive productivity, innovation, and higher wage growth. Recommendations include:

• Adding TCF manufacturing as a priority within the Made in Victoria statement;

• Strengthening government procurement policies to increase local content in uniforms, workwear and personal protective equipment (PPE) contracts;

• Developing a revitalised TCF skills and training program for full workforce skill gaps;

• Co-investment in advanced technology and jobs of the future for a sustainable, circular clothing economy; and

• Developing a national TCF manufacturing strategy, with Victoria at the forefront.

“It’s imperative to the future of Victoria’s, and more-broadly Australia’s, textiles, clothing and footwear manufacturing industry that we collectively invest in and preference local. This sector is ours to lose. By implementing these very practical and achievable recommendations we can revive the industry, retain sovereign capability in Australia in TCF manufacturing and empower Australian brands to start, remain or even return onshore,” Australian Fashion Council CEO, Jaana Quaintance-James said.

“What has also been made clear is how important swift action is for the many women employed in fashion manufacturing, and how crucial the role of a female-powered workforce will be in turning its decline around.”

The report also highlights cost efficiencies and reduced waste that can be achieved should a smart factory model be rolled out. Smart factories use advanced technologies, including digital sampling, digital printing, and laser cutting, to reduce waste and production lead times.

“With the help of new sustainable technology such as the Epson Monna Lisa direct-to-fabric printer, manufacturing locally can be made far more cost-effective for brands, enabling made-to-order production, reducing waste to landfill and ensuring cost efficiencies,” Epson Managing Director Craig Heckenberg said.

“The smart-factory concept and technology to support it, can allow Australian brands toproduce high quality, sustainable Australian-made clothing, for Australian consumers and abroad,” Heckenberg continued.

Adhering to the recommendations in the report will allow more Australian-owned labels to operate entirely onshore and have the capacity and capability to continue long-term.

“If the industry was adequately supported to enable brands like mine to be able to produce onshore, it would significantly help to streamline our business and take advantage of just-in-time manufacturing so critical to address sustainable activity. I’m sure many labels would feel the same. We all want to support our highly skilled talent at home and continue to grow the Australian textiles trade, its job market and ultimately the wider economy,” said Ngali Owner and Designer Denni Francisco.

The report is available now at www.ausfashioncouncil.com