As AMGC marks its second decade, it’s executive chair Paul Cooper warns that urgent action is needed to unlock the growth potential of the nation’s 45,000 SME manufacturers.
A core part of my role – and that of the AMGC team’s mission – is to lead with the intent of transforming Australian manufacturing to become more competitive and more resilient. For the past decade, we have consistently championed small- and medium-sized manufacturers, recognising that while they require the greatest support and targeted investment to scale, they also hold the greatest potential for growth.
Large companies can keep growing, but the journey from small to big demands a different, tailored approach. As AMGC enters its second decade as a voice of Australian manufacturing, one reality remains unchanged: the challenges holding back our industry’s ability to scale, succeed and employ more Australians, are as pressing today as they were ten years ago.
From plans that promise Australia will make more things, the reality couldn’t be more different, the diversity of products we manufacture for global and domestic markets is shrinking. This is a narrative none of us should accept – and one that should deeply concern decision-makers.
Harvard Business School’s measure of economic complexity ranks Australia a dismal 105th, wedged between Botswana and Côte d’Ivoire – nations defined not by industrial capability but by commodities like cocoa, coffee, and palm oil. It is no surprise that Australia sits within this cohort given our commodity-dependent economy. The fact that Australia tolerates such a ranking is extraordinary. Were it not for the committed and talented manufacturers we do have, our position would be worse still.
Contrast this with snappy taglines, high-vis photo opportunities, and policy parlance, the question is whether those in a position to act are truly listening. Do they understand the scale of opportunity manufacturing presents, and the untapped potential that remains largely ignored?
This is why, whenever AMGC is afforded the opportunity to inform, inspire, and correct the record, we do so. Our mandate is to stand behind all manufacturers across the nation, representing our 8,000-strong member network and the broader industry in forums that matter most.
Advocacy for urgency
In recent months, this has taken us into government-led Economic Reform Roundtables, where productivity reform has been the focus. I attended such a roundtable hosted by Federal Minister for Small Business, the Hon Dr Anne Aly, as a representative of AMGC’s SME manufacturers, while our managing director, Dr Jens Goennemann, attended a similar discussion with Federal Industry Minister the Hon Tim Ayres.
These events coincided with AMGC participation at two of the nation’s largest manufacturing focussed events, Industrial Transformation Australia and the National Manufacturing Summit, which also allowed us to highlight your needs directly to decision-makers.
The brief for my attendance at Minister Aly’s roundtable was simple: what can be done to unlock economic opportunities and productivity gains for SMEs? There was a clear focus on taxation, reducing red tape, unlocking access to capital, and other measures AMGC proposed to help manufacturers scale. Encouragingly, Minister Aly and her team were receptive to our insights, which were supported by my own experience as a manufacturer of more than 25 years.
Across all forums, including other meetings with state ministers and advisors, or the National Reconstruction Fund (NRF), we convey the challenges you face daily – from high energy costs to limited capital and inconsistent policy. Above all, we have voiced the frustration with inaction – and the toll this is taking.
Areas for immediate attention
If you want a sense of these conversations, then I encourage you to watch Ross Greenwood’s Sky News segment from 10 August, where I joined other industry leaders to discuss the state of the nation ahead of the Federal Treasurer’s three day Economic Reform Roundtable.
The discussion made it clear that access to capital remains one of the greatest barriers for SMEs, particularly when initiatives like the NRF impose investment thresholds that are unattainable for smaller firms. Add to this high taxation, rising energy costs, and regulatory complexity, and it is clear why innovation and competitiveness are being stifled, and productivity is flagging.
Encouraging collaboration between industry and educational institutions – driven by manufacturers – will be critical in strengthening skills, building capabilities and enabling SMEs to make more complex and globally competitive goods. These actions would strengthen industry and the national economy, while improving productivity and economic resiliency – the very targets our political leaders hope to reach.
Despite the Treasurer’s three-day roundtable, the absence of a voice for Australia’s 45,000 SME manufacturers was stark. Our concern is that without a strong industry voice, policymakers risk overlooking the very constituency best placed to lift national productivity and prosperity. Commentators have rightly observed the correlation: as manufacturing declines, so too does productivity. This isn’t because manufacturers aren’t productive but because there are fewer of them – and those who remain are underutilised and under-supported.
The latest Australian Bureau of Statistics data underscores the urgency: in the 12 months to June 2025, Australia’s manufacturing base grew by just 0.2 per cent – the second-lowest growth of any industry. This isn’t a “Future Made in Australia”; it’s a future slipping away.
Prioritising today, for tomorrow
From AMGC’s perspective, the path forward is clear: first, support promising manufacturers on the cusp of greatness – now, not later. Second, manufacturing must be recognised as more than a political backdrop – it has the capacity to reshape Australia’s future prosperity. Third, we must adopt an industry-led national plan grounded in insight and action, modelled on proven international examples like Germany’s Fraunhofer, the UK’s Catapult, and Japan’s MITI programs – programs that inspired AMGC’s earlier successful federal initiatives.
At the heart of it all is action. Decades of inward-looking, well-meaning but overly bureaucratic programs have failed to deliver: Australia is less competitive, less capable, and less productive at making complex goods. It’s time to do something different, it’s time to let industry take the lead.
Australia’s manufacturing industry has immense potential – we know how to turn R&D into GDP, meet global customer demands, and build a future here at home. AMGC will continue to advocate for you to take the lead because manufacturing isn’t just an opportunity, it’s a priority.
