Greater South East Melbourne is Australia’s manufacturing powerhouse that can drive future economic growth, according to a new report by Deloitte Access Economics.
But “urgent investment” is needed to lead an “economic renaissance”, says GSEM regional alliance’s chair Simon McKeon in response to the report.
The report GSEM Australia’s Manufacturing Powerhouse released today (23 September) finds that the GSEM region supports more manufacturing jobs and businesses per capita than other manufacturing centres.
Per capita, it was found to have overtaken Western Sydney as the nation’s “leading industrial engine room”.
“GSEM [is] the largest and most important manufacturing hub in Victoria and Australia,” the report stated.
“[It is] distinguished by its scale, advanced manufacturing capabilities, skilled workforce, and proximity to key transport corridors.”
However, the report calls for action on constraints such as limited land availability, skills challenges and freight infrastructure.
It identified available industrial land at Officer South and Port of Hastings but little in “key Inner East and South East regions”.
The limited capacity of Monash Freeway, Princes Highway and Eastlink connections, as well as a lack of direct rail freight links, were also noted.
Major transport projects were required such as the Thompsons Road upgrade, Dandenong South Intermodal Terminal and the proposed South East Airport.
The report also warned of a low share of young workers in the sector, and skills gaps for advanced manufacturing roles.
“If local training and national migration and skills policy do not keep pace, firms may struggle to scale advanced production lines in the region.”
In response, McKeon called for urgent investment in infrastructure, skills and innovation.
“South East Melbourne is uniquely placed to lead Australia’s economic renaissance, with advanced manufacturing at the core.
“If Australia wants to fix its productivity crisis and continue to power economic growth, it will be the workers and businesses across Melbourne’s south-east leading the charge.”
The GSEM region comprises eight local government areas including Greater Dandenong, Monash, Casey and Cardinia.
It is home to 3801 manufacturing businesses, employing more than 75,000 – or 27 per cent of Victoria’s manufacturing workforce.
Manufacturing jobs in the region were projected to have grown 9.3 per cent between 2016 and 2025, the report found.
In the same period, manufacturing jobs shrunk across Australia (-0.5 per cent) and in western Sydney (-4.7 per cent).
The region benefits from high-tech industries such as advanced materials, chemicals, pharmaceuticals and transport equipment, as well as “world-class industrial clusters” in Clayton and Dandenong.
Greater Dandenong accounts for a third of GSEM’s manufacturing output, including a large transport-equipment sector such as Jayco, Nissan Casting Australia and Alstom.
GSEM was well placed near key transport corridors connecting to Port of Melbourne and Melbourne Airport for international markets, the report found.
Monash mayor Paul Klisaris said “growing our manufacturing base is not about just better statistics”.
“It’s about creating thousands of secure, skilled jobs that let families put down roots, buy homes and build strong communities.”
“Every new factory means more apprentices, more local spending and more opportunities for the next generation right here in Melbourne’s South East.”
