Victorian Government's New Strategy on Manufacturing Lacks Punch

20 Dec 11

Titled, a more competitive manufacturing industry; securing jobs and boosting investment, but today's press release on the new strategy is very light on the how!

Whilst the Victorian Government has been silent on support for the manufacturing sector for some time, todays press release from Minister for Manufacturing Richard Dalla-Riva seems to be all about cleaning up the mess of Government programs, he states that "the old maze of unwieldy industry assistance programs that failed to deliver effectively for business or the taxpayer will be replaced."

It would be short sighted to view this new manufacturing strategy as simply a Government clean-up, or political posturing, but the strategy outlined in the press release does not speak of direct action or direct support. The press release and strategy seemingly also falls short on advising Victorian Manufacturers on how to access the assistance on offer and the criteria required to be eligible.

The devil is in the lack of detail, and it is to be hoped that the formation of the new Victorian Manufacturing Council will produce tangible results and be an effective source of strategic advice to the government.

The Press Release Reads as Follows:

The Coalition Government has released its manufacturing strategy that will strengthen Victoria's manufacturing industry to secure jobs and grow business investment.

Minister for Manufacturing Richard Dalla-Riva today launched the Coalition Government's manufacturing industry strategy at defence manufacturing specialist Tectonica.

Mr Dalla-Riva said the Coalition Government was committed to a strong and successful future for manufacturing in Victoria.

"This strategy will strengthen Victoria's manufacturing industry to create more opportunities for businesses to grow and become more productive and competitive in a tough global market," Mr Dalla-Riva said.

The strategy sets the direction for five priority areas to lift the productivity and competitiveness of Victoria's manufacturing sector:

1. A world-class specialist manufacturing service
   Manufacturing Solutions Victoria (MSV) will support manufacturers in identifying practical solutions to drive productivity and to get products into new markets.
2. Productivity and innovation networks
   Manufacturers will be supported to strengthen existing co-operation between business and research institutions to facilitate supply chain integration and partnership to support innovation and technology diffusion.
3. Investing in technology
   Manufacturers will be supported to introduce leading-edge technology with high growth potential.
4. Support for small manufacturers
   Manufacturers will be able to access specialised workshops to ensure small business manufacturers can stay up-to-speed on latest trends in areas such as lean manufacturing, access to information on government tenders, and commercialisation.
5. Niche and specialist skills
   Manufacturers will be supported with a systematic and structured approach to identifying and addressing priority specialist skill needs for key trades and other occupations critical for the future manufacturing workforce.

Mr Dalla-Riva said the new strategy would be underpinned by expanded grass roots engagement with Victorian manufacturers and by replacing the existing unwieldy maze of industry programs to make access to support for business easier.

"The government is rolling out a new and exciting business engagement model, which will bring a significant step-up in the scale and effectiveness of the government's relationship with industry," Mr Dalla-Riva said.

"More than 80 specialist business development officers will work directly with businesses in the major manufacturing suburbs of Melbourne and in regional Victoria, where they will interact directly with businesses on a daily basis.

"The old maze of unwieldy industry assistance programs that failed to deliver effectively for business or the taxpayer will be replaced.

"The government's new strategy will simplify and provide easier access to support for business by reducing the number of programs supporting manufacturing, from 32 to 5.

"This new and more tightly-targeted suite of measures will focus on achieving demonstrable gains in productivity, in building new markets, in generating innovation, and in ensuring manufacturers have the skills they need to compete.

"The Coalition Government will also ensure there are more opportunities for local businesses to compete for government contracts and will strengthen the Victorian Industry Participation Program.

"The government will also simplify and increase the transparency of the procurement process," Mr Dalla-Riva said.

The strategy was informed by the Victorian Competition and Efficiency Commission (VCEC) inquiry into the manufacturing sector.

"This has been the most rigorous, detailed study anywhere in the country of the challenges facing manufacturers," Mr Dalla-Riva said.

Launching the strategy, Mr Dalla-Riva also called for expressions of interest to join the new Victorian Manufacturing Council.

"The Victorian Manufacturing Council's central focus will be as a source of strategic advice to the government and for reporting on the performance of the industry," Mr Dalla-Riva said.

"The Council will provide an important channel for the government to consult and interact directly with manufacturers big and small.

"The Council will also provide a platform for information sharing between government, industry and research institutions," Mr Dalla-Riva said.

Victoria's manufacturing sector is the state's single largest full-time employer. The sector employs around 295,000 Victorians and generates around $15.3 billion per annum in export sales.

Council members are sought from a variety of industry sectors including large and small manufacturers in metropolitan Melbourne and regional Victoria. Individuals with a mix of expertise, experience and a range of business perspectives are invited to apply.

The Victorian Manufacturing Council will operate for a two year term, running from 2012 to 2014.

Confidential expressions of interest to join the Victorian Manufacturing Council should be sent to the Executive Director of Sector Development, Department of Business and Innovation, GPO Box 4509, Melbourne Vic 3001. For more information call David Latina, Executive Director, Sector Development on (03) 9651 9786.

The Victorian Government manufacturing strategy: A more competitive manufacturing industry can be viewed at www.dbi.vic.gov.au

The Victorian Competition and Efficiency Commission final report: Victorian Manufacturing Meeting the Challenges and the Victorian Government's response can be viewed at www.vcec.vic.gov.au