NSW Inquiry: Procurement Recommendations Could Lead to a Bright Future for Local TCF Manufacturing

The AFC welcomes the NSW Government's report on procurement practices, which highlights the untapped potential of local TCF manufacturing to drive economic growth and job creation.

The report identifies several critical areas where changes in government procurement policies could revolutionise the Australian fashion and textile industry, boosting local businesses and creating more job opportunities.

"The findings are a clear indication that supporting local TCF manufacturing is not just an option but a necessity to ensure the sustainability and resilience of our industry. By prioritising local content, we can empower women with job opportunities, leverage the multiplier effect of local manufacturing to drive ethical supply chains and accelerate the adoption of technology into advanced manufacturing. This is our opportunity to position Australia as a leader in innovative and sustainable products on the global stage, focusing on quality and innovation rather than competing solely on the lowest price.

"Government procurement plays a huge role in creating economic stability for manufacturers, giving them the fiscal headroom to invest in more staff, more training, and advanced equipment, which in turn drives innovation through research and development. It's crucial for the government to signal to the rest of the community that procurement decisions are no longer just about the cheapest option. This shift in focus will attract investment, foster innovation, and support the development of advanced manufacturing capabilities that can truly make Australia competitive globally," - Jaana Quaintance-James, CEO of the Australian Fashion Council.

To truly unlock the potential of the Australian fashion sector, the AFC urges the NSW Government to take bold steps in adopting these recommendations, particularly those that enhance opportunities for small businesses, support First Nations enterprises, and drive sustainability. By embracing these changes, the government can create a thriving ecosystem that fosters innovation, creates jobs, and supports local manufacturers.

Summary of Report Key Findings:

Support for Local Content: There is broad support among stakeholders for prioritising local content in procurement to boost the local economy and create jobs.
Modern Slavery Concerns: Current procurement practices lack transparency, leading to potential labour exploitation, especially in high-risk industries like cleaning and security.
Lack of environmental and Sustainability Standards: There are currently no goals to meet or achieve any Environmental or Social sustainability standards across procurement practices.
Compliance Gaps: Post-award compliance checks are infrequent, risking non-compliance with labour standards and contract obligations.
Small Business Access: Small businesses face barriers in participating in procurement processes due to a lack of capacity and complex tender requirements.

Summary of Recommendations for the Australian TCF Manufacturing Industry:

To promote the advancement of local manufacturing and job creation in Australia, the AFC support prioritising the following five recommendations from the report:

Prioritise Local Content in Procurement (Recommendation 1):
- Support local innovation by breaking down tenders into smaller parts, enabling small businesses to participate.
- This approach would directly benefit local manufacturers and support small businesses to scale up, increasing job opportunities and economic growth.
Mandate Modern Slavery Clauses (Recommendation 3):
- Include modern slavery clauses in all procurement contracts to ensure ethical supply chain practices.
- This recommendation aligns with ethical business practices and promotes fair labour standards, helping to protect workers in high-risk industries.
Establish a Jobs First Commission (Recommendation 9):
- Implement measures to monitor and enforce local content requirements, ensuring systematic compliance checks.
- A dedicated body like the Jobs First Commission will drive accountability in supporting local industries and increasing employment opportunities.
Support for Aboriginal and Diverse Enterprises (Recommendation 14):
- Provide training, support, and skill development for Aboriginal businesses to help them succeed in government procurement.
- Increasing diversity in the supply chain not only supports job creation but also fosters social inclusion and economic development within disadvantaged communities.
Incentivise Sustainability and Circular Economy Practices (Recommendation 18):
- Introduce requirements for government tenders to focus on product stewardship and the circular economy.
- Emphasising sustainability in procurement encourages innovation and positions NSW as a leader in environmentally responsible manufacturing.

By adopting these strategies, the future of Australian manufacturing can be brighter than ever, providing a more resilient and competitive landscape for businesses and communities across the country.

Read the report in full here

AFC MEMBER BRAND & MANUFACTURERS FORUM

AFC Members are invited to this session, where we will unpack the Victorian TCF manufacturing report findings and recommendations, and workshop industry priorities. This forum will be an opportunity for brands and manufacturers to collaborate, voice challenges and plan next steps for our manufacturing industry to be better supported, evolve and thrive.

WHEN: Wednesday, 23 October, 2024
TIME: 11.00am - 1.00pm
LOCATION: Epiphany Room, GPT Space&Co, 376-390 Collins Street, Melbourne
AFC Members can RSVP HERE

AFC Member, Brand & Manufacturing Forums in Melbourne

AFC members are invited to the AFC Member Forums, held in Melbourne during Melbourne Fashion Week. Please RSVP for both events.

SESSION ONE: AFC MEMBER FORUM

TIME: 8.30am -10:30am

WHEN: Wednesday, 23 October, 2024

LOCATION: Epiphany Room, GPT Space&Co, 376-390 Collins Street, Melbourne

AFC MEMBERS RSVP HERE

In this session, we will share the AFC’s new strategy and upcoming programs and events for members. These forums provide a unique opportunity to voice your feedback, network with industry peers, share knowledge and discuss key issues that will inform AFC’s pathways, policies and projects.

SESSION TWO: AFC MEMBERS & MANUFACTURING FORUM

TIME: 11.00am - 1.00pm

WHEN: Wednesday, 23 October, 2024

LOCATION: Epiphany Room, GPT Space&Co, 376-390 Collins Street, Melbourne

AFC MEMBERS RSVP HERE

Please stay for the AFC Manufacturing Forum where we will focus on our industry manufacturing strategy. In this collaborative session, we will unpack the Victorian TCF manufacturing report findings and recommendations to workshop our industry priorities. This forum will be an opportunity to work together to plan the next steps for our manufacturing industry to be better supported, evolve and thrive.

WHY ATTEND AFC MEMBER FORUMS?

Exclusive Access: Be first to hear about the AFC’s strategy and industry priorities.

Networking: Connect with fellow members and industry leaders.

Workshop & Feedback: Share your insights and help shape the future direction of the AFC.

Knowledge Sharing: Gain valuable knowledge and best practices from your peers.

With special thanks to Melbourne Fashion Week for supporting the AFC Member Forums through their Independent Program.

Fashion Exporting: New Changes to the ‘Export Market Development Grant’ (EMDG) Program

The EMDG program has been updated from Round 4 onwards to better meet the needs of exporters. The program aims to aid eligible Australian businesses in marketing, promotions, and training to boost their export efforts. It provides crucial support as businesses begin and grow their fashion exporting activities.

New changes mean bigger grants, but not every applicant will receive a grant. EMDG funding is limited. They expect to receive a large volume of applications.

Due to the program changes:

Some businesses and representative bodies who previously received EMDG grants will no longer be eligible.
Some applicants who are eligible and apply will not receive grants. This is because funds may be fully allocated before we receive their application or before we assess it. This could be the outcome even if they submitted before applications closed.

Your SME business may be eligible in one of these tiers:

Tier 1 – ready to export
Tier 2 – exporting within existing markets
Tier 3 – exporting to new key markets.

KEY CHANGES MADE

1. Larger Grant Amounts and Greater Clarity

Maximum grant amounts are now set for each tier and are disclosed in advance. Grants will be awarded on a first-come, first-served basis until funds are exhausted, and rounds will close once the available funding is allocated. This ensures clarity for businesses and aligns with other Commonwealth grant programs.

2. Improved Eligibility Criteria for Small and Medium Enterprises (SME’s)

Updated to better align with successful exporters' profiles. Key requirements include:

Minimum Turnover: Specific annual business turnover required per grant tier.
Marketing Spend: Businesses must invest at least $20,000 of their own funds in marketing and promotional activities, excluding the grant amount.
Business Duration: Minimum of 2 years in business with the same ABN.
Tier 1 Requirements: Applicants must demonstrate readiness to export through approved training or testing.
Grant Duration: Businesses can receive EMDG grants for up to 8 financial years, with new limits.

3. Better Support for businesses

Potential to provide grants that target specific markets for different grant tiers.

Read More Here if you are interested in applying.

Deadline:

APPLY through the EMDG online portal. Starting from Round 4, applications will be assessed in the order they are received. While the updated program offers larger grants, please note that limited funding means not all applicants will receive support.

Tier 1 – ready to export, applications open AEDT 10am on 12 November

Tier 2 – exporting within existing markets, applications open AEDT 10am on 12 November

Tier 3 – exporting to new key markets, applications open AEDT 10am on 12 November.

The new AFC Strategy: Shaping the Future of Australian Fashion and Textiles

Dear Australian Fashion Community,

I’m thrilled to share some exciting news with you. At the AFC, we’ve been hard at work crafting a new strategy—it’s one that directly addresses the challenges our industry is facing today, shaped by your voices, your concerns, and your passion.

Last month, we gathered with many of you in Sydney for our first-ever Member Forums to discuss the future of the Australian fashion industry. These sessions were a powerful reminder of what makes our industry so special: our willingness to come together, share openly, and work collaboratively towards common goals. The feedback from these forums played a crucial role in refining the AFC's new strategy, ensuring it is aligned with the needs of the industry.

Key challenges identified during the forums include the complexities of accessing export markets, the high costs associated with local manufacturing, and the urgent need to address skills gaps within the industry. Members also highlighted the importance of sustainability, expressing a desire for more circularity infrastructure and greater industry collaboration to drive meaningful change.

The AFC's Strategic Agenda

The Member forums helped us refine our mission for our members:
To champion and advocate for a prosperous, innovative and creative Australian fashion and textiles industry. Our purpose is to build a vibrant and inclusive ecosystem for our community through education, collaboration and innovation.

And the strategic priorities the AFC needs to deliver on this mission:

REPRESENTATION:
Cultivate a member community that represents the full breadth of the Australian fashion and textile industries and activate projects such as an industry-level strategy for First Nations Fashion and evolving the AFC Directory and Hub to better meet your needs and connect you with your peers.

ENGAGEMENT & ADVOCACY:
Create value for our members by fostering community and collaboration and advocating for their interests with all stakeholders. This means more member engagement events such as ongoing member forums, anAustralian Fashion Conference in 2025, government advocacy and Strategic Partner programs which deliver value to you.

IMPACT:
Support our members to be successful through initiatives that deliver positive commercial outcomes in four key impact areas:

- - Commerce & Trade:
    The AFC will focus on helping members navigate export markets and increasing global exposure for Australian fashion via key programs including:
    - Export program, the information and connections needed to succeed internationally
    - AFC Academy, addressing key learning needs in our industry
    - Mentoring program, supporting our industry in continuous learning and knowledge sharing
- - Local Manufacturing:
    Recognising the fragmented state of local manufacturing, the AFC plans to support the development of a full value-added supply chain in Australia, fill skills gaps and promote career pathways in local manufacturing via key programs including.
    - Local manufacturing studies, starting with Victorian on September 3
    - Leading development of an industry-wide strategy for Australian manufacturing
    - Piloting smart factory concepts to evidence advanced manufacturing concepts in our industry.
- - Jobs & Skills:
    The AFC will work to ensure graduates are better prepared to enter the workforce, career pathways are mapped and promoted, and existing staff have opportunities to build and further develop skills via key programs such as:
    - Industry-wide skills & capability mapping
    - Defining the next generation textile and clothing apprenticeship
    - A machinist strategy to tackle critical shortages
- Sustainability:
  The AFC is committed to continuing to support sustainable practices within the industry and through industry-wide collaboration will advance:
  - Impact quantification tools, responding the need for consistent frameworks for reporting and data collection
  - Responsible planning and ordering, to support better commercial and sustainability outcomes

The AFC’s approach underscores its commitment to supporting the fashion industry through advocacy, education, and strategic partnerships.

This isn’t just a plan on paper—it’s a commitment to action. We’re ready to roll up our sleeves and work alongside you, secure funding to tackle the above programs, advocate for better industry support, create new educational pathways, and build the infrastructure we need for a more sustainable future. But we can’t do it alone. Our strength lies in our community, and we need your continued engagement and support to make this vision a reality.

If you’re not yet a member, now is the time to join the AFC. There’s an energy and momentum building in our industry that you won’t want to miss. As a member, you’ll have the opportunity to shape the future of Australian fashion, access exclusive resources, and connect with a network of passionate professionals who, like you, are dedicated to making a difference.

Together, we can overcome the challenges we face and build an Australian fashion industry that is not only resilient but also thriving. I can’t wait to see what we can achieve together.

Warm regards,

Jaana Quaintance-James
CEO, Australian Fashion Council

AFC Submission Into NSW Government Procurement Inquiry

The AFC were invited to make a submission for the inquiry on procurement practices of government agencies in NSW and its impact on social development, chaired by the Hon. Dr Sarah Kaine, MLC.

We believe prioritising local procurement can yield long-term economic benefits, such as job creation, increased taxable income, higher skilled occupations, reinvestment in technology and R&D, and overall industry growth. Our NSW sector is valued at $9.7 billion and employs 174,000 workers, so the potential is enormous!

Imagine the impact if government uniform contracts prioritised local manufacturers—long-term, high-volume contracts can drive innovation and capacity building. There are also positive social and environmental impacts for the NSW community such as better labour conditions, circular economy practice and end-of-life solutions, as well as upskilling the industry workforce.

READ OUR AFC SUBMISSION TO THE NSW PARLIAMENT INQUIRY HERE

AFC RECOMMENDATIONS FOR NSW GOVERNMENT PROCUREMENT POLICIES

Set Local Content Targets

Establish targets for local content in government uniform and PPE contracts with annual performance reporting.

Compensate Higher-Cost Bids with Broader Benefits

Include mechanisms to compensate or prefer higher-cost bids offering broader economic and social benefits.

Develop Environmental and Social Frameworks

Create an environmental framework for TCF sourcing that promotes circular design principles and the use of Australian-grown wool, cotton, and recycled fibres.
Implement a social framework ensuring accreditation requirements do not create barriers for local manufacturers and encourage partnerships with social enterprises.

Increase Transparency and Support for SMEs

Enhance transparency and support for SMEs in the procurement process, including shorter contract negotiations, tender briefings, and promoting local manufacturing capabilities.

BENEFITS FOR INDUSTRY

Labour Conditions: Engaging with local manufacturers increases visibility over the supply chain, reducing the risk of labour exploitation. Accreditation requirements should be achievable for local manufacturers without creating barriers to entry.
End-of-Life Clothing Solutions: Investing in circular economy practices and transitioning to sustainable materials, such as Australian-grown wool and cotton, can reduce the environmental impact of uniforms.
Upskilling the Industry: Long-term government contracts can provide the confidence needed for local manufacturers to invest in staff training, new machinery, and overall capability building.

CASE STUDIES HIGHLIGHTING SUCCESS AND POTENTIAL

The Social Outfit and Workwear Group Collaboration

In early 2023, The Social Outfit, a Sydney-based social enterprise, collaborated with Workwear Group to produce 2000 scarves and pocket squares for Westpac's uniforms. This partnership provided increased work hours and upskilling for The Social Outfit’s employees, demonstrating the positive social impact of local procurement.

Citizen Wolf and the Great Barrier Reef Marine Park Authority

In July 2023, Citizen Wolf contracted to supply custom-fit uniforms for the Great Barrier Reef Marine Park Authority, using 100% Australian cotton. This initiative supports local farmers and promotes sustainable practices.

The AFC urges the NSW government to implement these recommendations to reinvigorate local clothing manufacturing, create a network of NSW TCF suppliers, and develop a comprehensive procurement policy that benefits the entire state.

NEXT STEPS:

Fund a comprehensive report to quantify the NSW TCF manufacturing industry.
Establish a procurement policy for uniforms and protective equipment with local content targets.
Increase transparency and support measures for SMEs in procurement processes.
Implement environmental and social frameworks specific to TCF sourcing.
Encourage industry participation and build awareness of Australian manufacturing capabilities.

These steps will ensure the NSW government supports a vibrant, sustainable, and economically beneficial TCF industry.

READ OUR AFC SUBMISSION TO THE NSW PARLIAMENT INQUIRY HERE