SA positions for “jobs bonanza” as nation looks to rebuild manufacturing base
South Australia is angling to cash in on a possible jobs boom as Australia looks to rebuild its local manufacturing base after coronavirus and be self-reliant in times of disaster.
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South Australia is angling to cash in on a possible “jobs bonanza” as Australia looks to rebuild its local manufacturing base after coronavirus and be self-reliant in times of disaster.
Premier Steven Marshall says SA’s combination of a skilled manufacturing workforce and hi-tech defence and space investment has us perfectly positioned to grow again.
“I think there will be a resetting of the balance,” he said.
“I think that post the coronavirus, we will be looking for a lot more balance in our supply chains. This could create a jobs bonanza in the manufacturing sector in SA.” Mr Marshall said he expected to see federal policy changes in support of local manufacturing.
“In recent years, if people could purchase product from overseas at a lower price, then that would be an attractive proposition,” he said.
“I think that post corona the Federal Government could change their policy towards a whole range of products which have in recent times relinquished local manufacturing capability.”
Prime Minister Scott Morrison has signalled he wants to reinforce national “sovereignty”, forging a new balance between free global trade and supporting strategic local industry.
SA has already stepped up with $1.5 million in support for local fast food packaging firm Detmold, which will pump out 145 million medical masks in this desperate time of need.
Employment in SA manufacturing has been battered over recent years and decades, as job-creating industries like building cars and whitegoods have gradually shifted offshore. After employing a peak of 114,000 people in 1990, the sector now supports 75,000 SA jobs. A key reason for rejecting an overseas submarine build was to create self-reliance during war.
This week, Mr Morrison said: “What we are in currently at the moment I think highlights the need for us, of course to be an open trading nation, that has been a core part”.
“Equally, we need to look carefully at our domestic economic sovereignty as well,” he said.
“These are issues that the government … is spending a lot of time focusing on at present”.
The Australian Competition and Consumer Commission has relaxed rules to allow medical technology companies to work together to co-ordinate the supply and potential manufacture of ventilators, testing kits, personal protective equipment and key coronavirus equipment.
SA Opposition Leader Peter Malinauskas said defence, food, energy and medical equipment were all areas where the state should be looking to create jobs and strengthen national security.
“I have never subscribed to the view that manufacturing is dead in SA,” he said.
“There is demand for innovative manufacturing in first world economies, even with relatively high labour costs. With appropriate government policy … that presents an opportunity for SA.
“There’s not an easy switch you can flick. It’s going to take concerted public policy effort.”
He said that would require a careful balance that does not scare private investment.
Federal Industry, Science and Technology Minister Karen Andrews said: “This pandemic has already shown we have incredible manufacturing capability in this country and when opportunities arise our manufacturers can take them”.
“What’s important is making sure those opportunities are still there once borders reopen and demand subsides,” she said.
“The Federal Government is already supporting Australian manufacturers to either increase their output or begin producing essential medical supplies like masks and hand sanitiser.
“I’m very committed to ensuring this spirit of making and buying Australian continues.”
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Ms Andrews said SA’s burgeoning space and defence industries were an added advantage for the state.
“SA could play an even further role, given the extensive advanced manufacturing capability that exists in the state thanks to the defence industry and space sector,” she said.
“It’s on governments at all levels, industry and consumers to maintain that.”
There are also hopes that a much lower Australian dollar, which has been falling amid and oil price war and coronavirus disruption, will supercharge local exporting. Some defence watchers believe it will also make local component manufacture much cheaper than doing it in France.
Mr Marshall said the State Government’s $200 million spend on trades training was essential.
“SA is in a unique position to benefit from any renewed focus on manufacturing onshore, particularly given the very keen focus we have on building up trade skills,” he said.
“We really genuinely are the only state in Australia making inroads into increasing the number of trade qualified personnel. It’s definitely the right strategy.”