Victoria’s fashion manufacturing industry has reached a critical point in its evolution, new research commissioned by the AFC in partnership with Epson Australia has revealed. Compiled by RMIT University, the report details for the first time, the current and potential value of our almost $1 billion industry.
In 2023, the Victorian TCF manufacturing industry generated over $930m for the Australian economy and employed over 9,000 people, 53% of which are women. TCF exports are valued at $334m, nearly $200m more than Victoria’s wine exports.
If left at the current trajectory, total industry value will decline by 18% with the loss of more than 700 jobs by 2030.
The report dives into the many challenges faced by the industry including underestimated industry value due to outdated ABS definitions; Limited support for SME's that are not prioritised in grants or funding; Unmet skills demand restricting industry growth; Rising operational costs and cost-competitiveness with offshore; and Ineffective procurement policies.
Modelling shows that implementation of the proposed policy suite would result in: An additional $225 million contributed to the Victorian economy, bringing the total annual value of the sector to $1.03 billion; A $133 million increase in wages; A 15% increase to the Victorian TCF manufacturing workforce; Creating over 1,526 jobs, employing 9,900 workers with 6,200 positions estimated to be filled by female employees.
To prevent further industry decline and drive productivity, innovation and higher wage growth for the industry, comprehensive reform is needed across five key areas:
Acknowledgements:
Commissioned by the Australian Fashion Council in partnership with Epson Australia.
Research for the report led by RMIT University team, with future state forecast modelling by RPS Consulting.
Authors: Underwood, J., Street, P., Payne, A., Carol, T., Kennedy, K., Singh, A., & McCorkill, G.
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