South-east Melbourne overtakes Western Sydney as the nation’s top manufacturing hub
MEDIA RELEASE
A new report by Deloitte Access Economics ‘GSEM: Australia’s Manufacturing Powerhouse’ -released today by the Greater South East Melbourne (GSEM) regional alliance – reveals that the region supports more manufacturing jobs and businesses per capita than any other part of Australia.
The GSEM region includes the local government areas of Cardinia, Casey, Frankston, Greater Dandenong, Kingston, Knox, Monash and the Mornington Peninsula. The region is Australia’s leading industrial hub, employing 1 in 4 Victorian manufacturing workers and generating more manufacturing output than any other region.
GSEM is home to 3,801 manufacturing businesses which employ 75,046 Australians. That is more manufacturing jobs than in each of the G21 region, Melbourne’s west, Western Sydney, Brisbane South, Perth South, or the entire state of South Australia. This is even more impressive given the GSEM region has a smaller population than other major Australian manufacturing hubs.
The manufacturing workforce in GSEM has expanded strongly, with projected growth of 9.3 percent between 2016 and 2025. Over the same period, the national manufacturing workforce has shrunk by 0.5 percent and by 4.7 percent in Western Sydney.
This cements GSEM’s status as Australia’s manufacturing powerhouse.
The Deloitte Access Economics report also explored the unique characteristics which underpin GSEM's high-performance when compared to other industrial regions. These include:
Advanced capabilities in high-tech industries, such as advanced materials, chemicals, pharmaceuticals, and transport equipment
The presence of world-class industrial clusters, such as the Australian Manufacturing and Material Precinct in Clayton and the Dandenong National Employment and Innovation Cluster
Access to a skilled and growing workforce, with the region home to more than 1.5 million people and several key skills and training institutions, such as Monash University, Federation University, Chisholm Institute TAFE and Holmesglen Institute TAFE.
GSEM’s strategic location and proximity to key transport corridors, like the Port of Melbourne and Melbourne Airport, provide unrivalled access to domestic and international markets.
“South East Melbourne is uniquely placed to lead Australia’s economic renaissance, with advanced manufacturing at the core,” Greater South East Melbourne Chair Simon McKeon AO said.
“The unique makeup of our businesses, industry hubs, geography and workforce position GSEM as a vital economic and strategic asset for Victoria and Australia, driving innovation, exports, and sovereign capability.”
As the Deloitte report puts it: “GSEM’s manufacturing sector is not only crucial today, but with the right support it can drive Australia’s future economic growth.”
“If Australia wants to fix its productivity crisis and continue to power economic growth, it will be the workers and businesses across Melbourne’s south-east leading the charge,” Mr McKeon added.
Despite these strengths, the report warns GSEM faces threats that could constrain future industrial growth – risking job and economic growth. This includes limited land availability, skills challenges in emerging advanced manufacturing disciplines and ongoing freight infrastructure constraints.
The GSEM alliance is calling for coordinated action from the Federal and Victorian Governments to address these challenges. By doing so, the region can continue to drive Australia’s national prosperity into the future. Key recommendations include:
Proactive land use planning to unlock additional industrial capacity and support population growth.
Targeted infrastructure spending to bolster transport resilience and freight capacity.
Workforce development initiatives to attract and retain skilled talent, including stronger links between local education institutions and industry.
Further government investment under the Future Made in Australia and Victorian Industry Policy strategies to help manufacturers scale, innovate, and compete globally.
“Our political leaders need to recognise and celebrate the immense contribution of Greater South East Melbourne, while also continuing to protect and invest in its future,” Mr McKeon said.
Media contact: James Stevens, 0406 265 559