Education key to success of Australian manufacturing

Despite downturns in some manufacturing sectors, things aren’t all bad for the industry, according to the Australian Workforce and Productivity Agency’s (AWPA’s) new report, the Manufacturing Workforce Study 2014.

While employment in the sector has declined by 10.2% in the last decade, several subsectors - including food and beverage and medical and pharmaceutical - have experienced employment growth.

Sue Beitz, general manager of AWPA, says there are “fabulous” manufacturing opportunities in the pharmaceutical, biotechnology and food and beverage sectors.

“The future lies in us shifting from heavy industry manufacturing to higher value-added, technologically advanced production,” the report says.

“Raising skill levels, including by employing a larger proportion of university graduates, will be critical to success, as will stronger collaboration between manufacturers and universities to ensure the supply of skilled graduates and drive innovation through research.

“Business, supported by peak industry groups and governments, will need to drive the transition in order to secure a competitive future.”

Currently, 45.2% of existing workers in the manufacturing industry do not hold any tertiary qualifications, the report says, with only 14.5% holding university qualifications.

The transition from heavy industry to advanced and niche manufacturing will create new jobs, the report says, but there are likely to be fewer jobs overall in the industry.

“Despite the probable lack of overall job growth, businesses will generate demand for a wider range of skilled trades workers, technicians and professionals, particularly in STEM [science, technology, engineering and mathematics] disciplines. Technology and innovation may result in the loss of some occupations but will also change the scope of job roles and create new occupations,” the report says.

The AWPA recommends that strategies be put in place to support workers to transition to new roles, in combination with structural adjustment assistance packages, to mitigate the impact of closures on workers, their families and communities. Extending the working lives of mature-age workers and limiting knowledge loss due to retirement should also be a priority.

More information about the Manufacturing Workforce Study is available here