Australia: Strategy launched to rebuild domestic textile manufacturing

A new strategy has been launched in Australia aimed at rebuilding targeted domestic manufacturing capabilities across the textile, clothing and footwear (TCF) sector. The Australian Fashion Council (AFC) and footwear brand R.M.Williams have jointly introduced the National Manufacturing Strategy for Australian Fashion and Textiles 2026–2036.

The ten-year strategy was unveiled during a symposium and AFC member showcase at Parliament House in Canberra attended by more than 90 industry and parliamentary representatives. It seeks to address the sector’s heavy reliance on offshore manufacturing despite ongoing supply chain disruptions and global trade volatility.

The plan aims to close structural gaps and support advanced manufacturing to position Australia as a global competitor in “premium, technology-enabled and traceable production”. Key priorities include expanding domestic fibre processing and yarn spinning, strengthening specialised textile production and developing traceable, sustainably produced apparel and materials.

The strategy is built around three core pillars: activating demand, securing the future workforce and accelerating advanced manufacturing. Measures include leveraging public procurement to increase demand for Australian-made products, creating new skills pathways while supporting workforce diversity, and co-investing in modern equipment, fibre processing capacity and circular manufacturing innovation.

Development of the strategy followed nearly a year of consultation led by the AFC and R.M.Williams, involving 14 national sessions with manufacturers, brands, educators and policymakers. More than 300 stakeholders contributed over 1,000 proposals and almost 900 votes to determine the sector’s priorities.

Independent modelling by RMIT University and RPS suggests full implementation could increase TCF manufacturing value added from 2.6 billion to 2.9 billion dollars by 2030/31. The strategy is projected to deliver a cumulative 1.4 billion dollars economic dividend over five years, create more than 1,000 skilled jobs and generate 864 million dollars in additional wages, with around half of new roles expected to be filled by women.

Currently, TCF manufacturing employs more than 27,000 people in Australia and pays over 1.4 billion dollars in annual wages. Women make up 58 percent of the workforce, while 41 percent of workers come from culturally and linguistically diverse communities.

Marianne Perkovic, executive chair of the Australian Fashion Council, said the plan sets a clear direction for strengthening domestic capability. “This strategy sets out a clear roadmap for rebuilding a globally competitive Australian fashion and textile manufacturing sector… 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,” she said.

Samantha Delgos, general manager at the AFC, added: “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. Re-establishing fibre processing and spinning capability restores the missing link in our value chain."

The strategy will be led by the AFC and assessed through two review phases: an implementation review to 2029 and a strategic outcomes review through to 2036, aimed at establishing a competitive, technology-enabled and domestically anchored manufacturing sector.