The Australian Fashion Council (AFC) has commissioned a landmark feasibility study to establish a first-of-its-kind Clothing Smart Factory in Australia, a nationally significant step towards rebuilding sovereign clothing manufacturing capability. A Clothing Smart Factory is a next-generation, technology-enabled manufacturing facility designed to bring on-shore garment production back for Australian brands. The purpose-built manufacturing incubator will allow brands to test ideas, conduct R&D, and run small production at a scale and cost that is currently unavailable on-shore.
The study is backed by global technology leader Epson Australia as principal partner and sponsored by Investment NSW, delivered by a research consortium of three of Australia's leading universities; RMIT, UTS and Swinburne University of Technology.
Register for the Industry Workshop
As part of the market assessment for the study, the AFC and the research consortium are inviting industry to a 90-minute national online workshop: Designing the Factory of the Future, via Zoom. It's your opportunity to directly shape how a Clothing Smart Factory could give Australian brands a genuine on-shore alternative for small-run, on-demand production.
Using an interactive Miro board, you'll work alongside industry peers to explore market demand, manufacturing technologies, workforce needs and industry partnerships, with your input feeding straight into the recommendations delivered to the AFC. Register Below.
Australia's clothing and textile industry is fragmented and under pressure, with outdated machinery, skills shortages and limited local supply chain integration, every $1 million returned to on-shore production could generate $1.2 million in economic returns. The objective is to establish a commercially viable smart factory in NSW that closes this gap, enabling brands to sample and produce on-demand before scaling with local manufacturers.
A smart factory brings AI, digital design and sustainable technology together to enable on-demand garment manufacturing, connecting brands with manufacturers, strengthening local supply chains, and closing critical skills gaps through specialised training. By pairing digital design and print with advanced manufacturing, it enables fast, flexible production runs without high minimum order quantities, while improving supply chain visibility.
The AFC has appointed a research consortium of RMIT, Swinburne and UTS to run the feasibility study, drawing on their combined expertise in advanced manufacturing, textile technology and emerging fashion industry skills. The study covers five areas: market demand, technology, workforce, cost, and funding.
We have partnered with Epson Australia to commence a comprehensive six-month feasibility study examining market viability, technical requirements, machinery options, operational and funding models, and environmental and social impact assessments.
The study will create a detailed blueprint for a pilot facility combining digital design, automation, and AI technologies to revolutionise local production.
Who should attend the workshop?
Australian fashion and clothing brands, manufacturers, and anyone with a stake in onshore production are welcome to register. A second workshop will follow for more targeted input.
What will the feasibility study explore?
The feasibility study will explore whether an automated Cut, Make & Trim (CMT) facility can strengthen local manufacturing, create skilled jobs, and give the industry a scalable model for the future. The study is structured across six workstreams:
Market
Assessing demand from Australian brands and how a smart factory would connect with the existing manufacturing ecosystem.
Technical
Exploring the machinery, IoT platforms, process management and energy systems needed to operate the factory.
Workforce
Identifying the skills, training needs and workforce opportunities required to staff the factory.
Financial
Modelling the costs, revenue potential and financial viability of establishing and running the factory.
Location
Determining where the pilot should be based and what's needed to support a future national network.
Funding
Mapping funding pathways and investment opportunities, from government programs to industry co-investment, to bring the factory to life.
When will the Smart Factory be implemented?
The feasibility study is expected to be completed in late 2026, with a report coming out in November 2026. If validated as commercially viable, the AFC will move forward with securing funding to establish the smart factory.
Where will the Smart Factory be located?
The study is focused on establishing an initial smart factory in New South Wales, aligned with the NSW Government's Fashion Sector Strategy. The AFC's longer-term ambition is a scalable, replicable model that could underpin a national network of smart factories over the coming decade
Join us in shaping the future of advanced Australian fashion manufacturing.
"The NSW Government, through Investment NSW, is proud to support innovation that keeps fashion and textile manufacturing right here in New South Wales. A clothing smart factory has the potential to create skilled local jobs, strengthen our advanced manufacturing base and give Australian designers a genuine on-shore alternative for small-run production. This feasibility study is an important step in building the evidence and the partnerships needed to make that vision a reality."
The Hon. Anoulack Chanthivong MP, NSW Minister for Innovation, Science and Technology
"Epson is proud to support the Australian Fashion Council on this important initiative. Digital textile printing is transforming how garments are designed and made, reducing waste and water use while enabling local, on-demand production. We are excited to bring our technology and expertise to a project that could reshape the future of Australian fashion manufacturing."
Craig Heckenberg, CEO of Epson Australia
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