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The Australian Fashion Council (AFC) and R.M.Williams have launched what they describe as the first coordinated national roadmap to scale domestic manufacturing capability across Australia’s textile, clothing and footwear sector.
The National Manufacturing Strategy for Australian Fashion and Textiles 2026-2036 was unveiled at Parliament House in Canberra at a breakfast symposium attended by more than 90 industry and parliamentary guests, including members of the Parliamentary Friends of Australian Fashion and Textiles.
The ten-year strategy is the product of almost a year of industry consultation, including 14 national sessions with manufacturers, brands, educators and policymakers. More than 300 stakeholders contributed to the process, generating over 1,000 proposed initiatives and nearly 900 votes on strategic priorities.
97 per cent manufactured offshore
The strategy arrives against a backdrop of ongoing vulnerability in Australia’s fashion and textile supply chain. At present, 97 per cent of the country’s clothing and textile products are manufactured offshore, leaving the sector exposed to global supply disruptions and trade volatility.
Rather than attempt to compete with high-volume offshore manufacturing markets, the strategy focuses on closing structural gaps and accelerating advanced manufacturing. The goal is to position Australia to compete globally in premium, technology-enabled and traceable production, built on the country’s natural fibre strengths.
Marianne Perkovic, Executive Chair of the Australian Fashion Council, outlined the ambition behind the plan.
“This Strategy sets out a clear roadmap for rebuilding a globally competitive Australian fashion and textile manufacturing sector,” Perkovic explained. “Australia already has exceptional design talent, advanced manufacturing capability and globally recognised brands. With the right coordination across industry, skills and procurement policy, we have a real opportunity to strengthen sovereign capability, create skilled jobs and position Australia as a leader in premium manufacturing.”
The missing middle
The strategy identifies three core outcomes: capturing more value from Australian fibre, strengthening sovereign manufacturing capability and building a globally competitive premium sector.
Australia is one of the world’s leading producers of premium natural fibres, including wool and cotton, but exports raw fibre and imports finished goods at multiples of the original value. Re-establishing fibre processing and spinning capability is identified as a critical gap in the value chain.
Samantha Delgos, General Manager of the Australian Fashion Council, pointed to this disconnect.
“Australia is the world’s largest exporter of greasy wool and a globally significant cotton producer. Yet we export raw fibre and import finished goods at multiples of the original value,” Delgos noted. “Re-establishing fibre processing and spinning capability restores the missing link in our value chain.”
“Building the next generation of capability to capture this value – capability that is advanced, technology-enabled and circular – will also require stronger demand signals. Strategic public procurement can help anchor that demand and support the growth of Australia’s domestic manufacturing capability,” she added.
Three strategic pillars
The strategy is structured around three pillars. The first focuses on activating and driving demand, with strategic public procurement at the federal and state level identified as the anchor, supported by Australian-made identification and coordinated national promotion to extend demand through to consumer sectors.
The second pillar targets the workforce. The median age of a manufacturer in the sector is 57, making skills transfer an urgent priority. The strategy calls for new skilled pathways for advanced manufacturing roles and protections for the participation of women, who make up 58 per cent of textile, clothing and footwear manufacturers. Some 41 per cent of workers in the sector come from culturally and linguistically diverse communities.
The third pillar centres on accelerating advanced manufacturing through co-investment in modern machinery, new technologies and rebuilding early-stage fibre processing and yarn spinning – what the strategy describes as the sector’s “missing middle.” It also calls for innovation in circular manufacturing and fibre-to-fibre recycling.
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$1.4 billion economic dividend
Independent modelling by RMIT University projects that full implementation of the strategy’s policy platform would grow textile, clothing and footwear manufacturing value added from $2.6 billion to $2.9 billion by 2030/31, delivering a cumulative $1.4 billion economic dividend over five years.
The strategy is also projected to create more than 1,000 new skilled jobs and $864 million in additional wages, with approximately half of those jobs projected to be filled by women.
The sector already employs more than 27,000 Australians, with 58 per cent women compared to 28 per cent in other manufacturing industries, and pays over $1.4 billion in wages annually. The broader fashion and textile industry is valued at $28 billion and employs nearly 500,000 Australians across the value chain.
R.M.Williams backs the flywheel
Tara Moses, Chief Operating Officer at R.M.Williams, drew on the company’s own manufacturing history to frame the opportunity.
“R.M.Williams has manufactured in Adelaide for more than 90 years. We employ skilled craftspeople, invest in apprentices and continue to modernise production while competing globally,” Moses outlined.
“What’s needed now is to activate a flywheel: demand enables investment in skills, skills enable advanced manufacturing, and technology allows Australian manufacturers to scale while maintaining quality.”
Parliamentary backing
The strategy has the support of the Parliamentary Friends of Australian Fashion and Textiles group, which is co-chaired by Matt Burnell MP, Dai Le MP and Zoe McKenzie MP, with more than 60 bipartisan members across Parliament.
Burnell described the strategy as an economic blueprint for communities.
“This Strategy is a serious economic blueprint for communities, supporting skilled jobs, strengthening regional manufacturing and creating clearer pathways for women into trades and long-term manufacturing careers,” Burnell offered. “It presents a coordinated, cross-portfolio agenda that connects procurement, skills and industry capability.”
“As Co-Chair of the Parliamentary Friends group, I’m committed to supporting the sector to turn this plan into long-term coordinated action,” he added.
Epson backs smart factory push
Epson Australia, the AFC’s official print and projection partner, is also backing the strategy. The company is working with the AFC on a feasibility study for a “smart factory” and shared manufacturing hubs, similar to those it has already developed with The Social Outfit and Citizen Wolf, where Epson’s direct-to-fabric digital printing technologies form part of the production workflow.
Craig Heckenberg, Managing Director of Epson Australia, emphasised the role of digital technology in the strategy’s implementation.
“Epson is firmly committed to our partnership with the Australian Fashion Council and our joint goals around improving local manufacturing, furthering innovation and developing digital transformation,” Heckenberg remarked.
“This National Manufacturing Strategy represents an important step forward for Australia’s fashion and textile industry. Epson is proud to support this initiative and help accelerate the adoption of advanced digital technologies that can drive greater sustainability, unlock new opportunities and create the jobs of the future.”
Domestic capability on display
To showcase manufacturing capability already operating in Australia, AFC members from across the sector presented a cross-section of domestic production at the Parliament House event. The showcase featured R.M.Williams, Bianca Spender, Bond-Eye Australia, Clothing the Gaps, ABMT, Sylvia P, Waverley Mills, Silver Fleece and Stewart and Heaton.
The AFC and R.M.Williams also produced a short film titled “Made Here, Worn Everywhere” profiling AFC members including Australian Defence Apparel, The Social Outfit, Maara Collective, Citizen Wolf, Waverley Mills and Silver Fleece, highlighting the diversity of manufacturing already taking place across the country.
What comes next
The strategy will be led by the Australian Fashion Council as the peak body for the sector, with progress measured through a two-stage assessment framework.
The first phase, running to 2029, will assess progress in establishing the core architecture underpinning the strategy, including procurement reform, national capability mapping, skills recognition pilots, shared manufacturing infrastructure and governance arrangements to coordinate delivery.
The second phase, running to 2036, will measure progress against the strategy’s long-term ambition of a competitive, technology-enabled and domestically anchored manufacturing sector with a sustainable workforce pipeline and globally recognised market position.
Last Updated on March 14, 2026 by Nick Ross
