The Federal Government has welcomed the release of the long awaited Manufacturing Taskforce Report, which has found that the sector can continue to prosper and grow if it takes advantage of key emerging opportunities in the Asian region.

 

The Smart Manufacturing for a Smart Australia report, released by the Prime Minister’s Manufacturing Taskforce, concluded that the sector is a crucial part of the broader economy with significant links to other key industries, including construction, agriculture, utilities and services.

 

Despite its key importance, the report concluded the sector faces challenges such as the high Australian dollar, the strength of the resources boom in terms of capital and labour, more intensive global and regional competition and the continuing fallout from the global financial crisis.

 

The report made 40 key recommendations in an effort to map out ‘a power vision for the future of Australian manufacturing’ aimed at strengthening the local firms as they adapt to the changing economic environment.

 

The Federal Government has given in principle support to most of the recommendations, but has stopped short of supporting the call to further investigate a Sovereign Wealth Fund and a domestic reservation policy for gas.

 

The Federal Government has announced is has accepted the Taskforce’s recommendation to convene a Manufacturing Leaders Group to implement the its responses to the report.

 

The Federal Government has also announced it will bring together  Industry Capability Network, the Buy Australian at Home and Abroad Supply Advocates, AusIndustry and Enterprise Connect to share information on opportunities for Australian manufacturers in large domestic investment projects, with a particular focus on the resources sector.