Aerospace, medtech manufacturing are priority industries for Victoria’s government as it seeks re-election

Key industries have been identified by the Victorian Government to focus on up to 2030 – if it wins the November state election.

Victorian Premier Daniel Andrews. Picture: Nicki Connolly

Aerospace engineering and medical technology have been identified as priority industries under Daniel Andrews’ manufacturing plans for Victoria to 2030, should the Labor Party secure a third term at the state election in November.

While the focus on “medtech” is a far cry from the car manufacturing boom of the late 1940s after the first mass produced Australian-made car at General Motors-Holden was released in Melbourne, transport minister Ben Carroll said the motor business had left a “legacy” in the state.

“(Former prime minister Ben) Chifley challenged the Australian car industry in 1944 to produce a vehicle that would be entirely made in Australia, believing that boosting the manufacturing industry would stimulate the economy, generate jobs and support the nation’s recovery following the Second World War,” he said in an opinion piece in Wednesday’s Australian.

Victorian Minister for Industry Support and Recovery Ben Carroll. Picture: Andrew Henshaw

“The car industry was one of many that made their home in Victoria and made us the manufacturing state. This legacy remains strong today – Victoria is home to a $31 billion manufacturing industry.”

War in Ukraine and supply chain issues spurred on by global Covid-19 lockdowns have highlighted the need to ensure a self-sufficient economy, Mr Carroll said as he launched the government’s policy plans with industry leaders on Tuesday night.

The food and fibre industry will also be bolstered with an expansion into sustainable food manufacturing. As well, zero and low carbon emissions and digital and advanced technologies have been identified as growth sectors.

There are also “unprecedented” opportunities in defence and aerospace, Mr Carroll said.

Should the government retain power at the state poll on November 26, they have committed to invest in research and development opportunities in the sector which supports exports of $350m and employs 24,300 people.

According to an outline of the policy, the state is already home to “world-leading” defence and aerospace companies including Thales, Lockheed Martin, BAE Systems and Boeing among others.

“Victoria also has core strengths in space sector design, engineering and manufacturing. For example, Ronson Gears exports gear components for Lockheed Martin’s military and commercial satellites globally,” the policy snapshot read.

“The Victorian Government will continue to invest in its world class R & D and advanced manufacturing capabilities in defence, and support the state’s ambition to become a leader in the global space industry.”

As well, the “medtech” industry — which exports $3.5bn in pharmaceuticals and employs 31,400 people — will be a focus according to the snapshot.

“The health technologies sector was critical to Victoria’s pandemic response. It is in the national interest to build on this success to secure long term economic growth in the sector,” it read.

“Victoria’s $21.4bn health technologies sector is a global leader in research and manufacturing. The Victorian government will focus on strengthening the … sector.”