What Future for Australian Manufacturing and why should you care?

The question of whether manufacturing has a future in Australia has been hotly debated for some time. This year, the debate has reached fever pitch fuelled by the usual Hanrahans spouting their own versions of "We'll all be rooned."

The media is full of stories of failing Australian manufacturers and government bail outs. The Executive Chairman of Manufacturing Australia recently stated that, "manufacturing is severely threatened unless steps are taken to maintain global competiveness".

But is Australian manufacturing really on a road of no return or is it merely reshaping itself, albeit not without some pain, for the 21st century and why does it matter?

Firstly, why manufacturing matters. As Professor Roy Green has commented, Australian manufacturing is important because of the strong connection between manufacturing and developing a knowledge-based economy. True we may no longer be competitive in textiles, garments and footwear given the competition from