Manufacturing in Victoria

Victoria’s manufacturing sector faces many challenges in the wake of the COVID-19 epidemic. While more Victorians still work in manufacturing compared to other states, there had already been a big decline by 2021. Far-reaching changes in the location and types of Victorian manufacturing activity have occurred with the closure of many operations, especially in the automotive and clothing subsectors. Various emerging factors also include mounting trade disputes among major international trading partners and a government focus on ‘sovereign manufacturing’. 

Different Victorian state governments have released policy documents over the years, each with varying impacts. The Victorian Government released its most recent manufacturing policy statement in 2022. With technology changes, lower tariffs on imported goods and other factors causing the decline in historically significant parts of the industry, the state and federal governments are now promoting more ‘advanced’ and ‘sovereign’ manufacturing.   

This paper outlines how manufacturing is defined and examines developments over recent decades. It then provides maps and other data that show the location and changes in manufacturing sector businesses and employment across the state. The paper also outlines the sector’s evolution and relative decline after 2000 and the emerging policy debates.