South East Melbourne claims title as nation's top manufacturing hub

The Greater South East Melbourne (GSEM) regional alliance has released a report by Deloitte Access Economics, ‘GSEM: Australia’s Manufacturing Powerhouse’, that says the region is overtaking Western Sydney as the nation’s leading manufacturing hub.

The report reveals that the region supports more manufacturing jobs and businesses per capita than any other part of Australia.

The GSEM region includes the local government areas of Cardinia, Casey, Frankston, Greater Dandenong, Kingston, Knox, Monash and the Mornington Peninsula. The region employs one in four Victorian manufacturing workers and generates more manufacturing output than any other region.

GSEM is home to 3801 manufacturing businesses which employ 75,046 Australians. That is more manufacturing jobs than in each of the G21 region, Melbourne’s west, Western Sydney, Brisbane South, Perth South, or the entire state of South Australia, despite having a smaller population than other major Australian manufacturing hubs.

The manufacturing workforce in GSEM has expanded strongly, with projected growth of 9.3% between 2016 and 2025. Over the same period, the national manufacturing workforce has shrunk by 0.5% and by 4.7% in Western Sydney.

The Deloitte Access Economics report also explored the characteristics that underpin GSEM's high-performance when compared to other industrial regions. These include:

• advanced capabilities in high-tech industries, such as advanced materials, chemicals, pharmaceuticals and transport equipment;
• the presence of world-class industrial clusters, such as the Australian Manufacturing and Material Precinct in Clayton and the Dandenong National Employment and Innovation Cluster;
• access to a skilled and growing workforce, with the region home to more than 1.5 million people and several key skills and training institutions, such as Monash University, Federation University, Chisholm Institute TAFE and Holmesglen Institute TAFE; and
• GSEM’s strategic location and proximity to key transport corridors, like the Port of Melbourne and Melbourne Airport.
   

“South East Melbourne is uniquely placed to lead Australia’s economic renaissance, with advanced manufacturing at the core,” Greater South East Melbourne Chair Simon McKeon said. “The unique makeup of our businesses, industry hubs, geography and workforce position GSEM as a vital economic and strategic asset for Victoria and Australia, driving innovation, exports, and sovereign capability.”

Despite these strengths, the report warns GSEM faces threats that could constrain future industrial growth — risking job and economic growth. This includes limited land availability, skills challenges in emerging advanced manufacturing disciplines and ongoing freight infrastructure constraints.

The GSEM alliance is calling for coordinated action from the Australian and Victorian Governments to address these challenges.

Image credit: iStock.com/franckreporter