The Victorian Government has released its manufacturing strategy that aims strengthen the state’s manufacturing industry to secure jobs and grow business investment.

The strategy sets the direction for five priority areas to lift the productivity and competitiveness of Victoria's manufacturing sector:

  1. A world-class specialist manufacturing service
    Manufacturing Solutions Victoria (MSV) will support manufacturers in identifying practical solutions to drive productivity and to get products into new markets.
  2. Productivity and innovation networks
    Manufacturers will be supported to strengthen existing co-operation between business and research institutions to facilitate supply chain integration and partnership to support innovation and technology diffusion.
  3. Investing in technology
    Manufacturers will be supported to introduce leading-edge technology with high growth potential.
  4. Support for small manufacturers
    Manufacturers will be able to access specialised workshops to ensure small business manufacturers can stay up-to-speed on latest trends in areas such as lean manufacturing, access to information on government tenders, and commercialisation.
  5. Niche and specialist skills
    Manufacturers will be supported with a systematic and structured approach to identifying and addressing priority specialist skill needs for key trades and other occupations critical for the future manufacturing workforce.


Minister for Manufacturing Richard Dalla-Riva said the new strategy would be underpinned by expanded grass roots engagement with Victorian manufacturers and by replacing the existing unwieldy maze of industry programs to make access to support for business easier.


"The government is rolling out a new and exciting business engagement model, which will bring a significant step-up in the scale and effectiveness of the government's relationship with industry," Mr Dalla-Riva said.


"More than 80 specialist business development officers will work directly with businesses in the major manufacturing suburbs of Melbourne and in regional Victoria, where they will interact directly with businesses on a daily basis.


"The old maze of unwieldy industry assistance programs that failed to deliver effectively for business or the taxpayer will be replaced.


Mr Dalla-Riva said the new strategy would reduce the number of programs supporting manufacturing, from 32 to 5.


"This new and more tightly-targeted suite of measures will focus on achieving demonstrable gains in productivity, in building new markets, in generating innovation, and in ensuring manufacturers have the skills they need to compete.


"The Coalition Government will also ensure there are more opportunities for local businesses to compete for government contracts and will strengthen the Victorian Industry Participation Program.

The government will also simplify and increase the transparency of the procurement process," Mr Dalla-Riva said.

The strategy was informed by the Victorian Competition and Efficiency Commission (VCEC) inquiry into the manufacturing sector.


Launching the strategy, Mr Dalla-Riva also called for expressions of interest to join the new Victorian Manufacturing Council.


"The Victorian Manufacturing Council's central focus will be as a source of strategic advice to the government and for reporting on the performance of the industry," Mr Dalla-Riva said.


"The Council will provide an important channel for the government to consult and interact directly with manufacturers big and small. The Council will also provide a platform for information sharing between government, industry and research institutions," Mr Dalla-Riva said.


Victoria's manufacturing sector is the state's single largest full-time employer. The sector employs around 295,000 Victorians and generates around $15.3 billion per annum in export sales.


Council members are sought from a variety of industry sectors including large and small manufacturers in metropolitan Melbourne and regional Victoria. Individuals with a mix of expertise, experience and a range of business perspectives are invited to apply.


The Victorian Manufacturing Council will operate for a two year term, running from 2012 to 2014.

Confidential expressions of interest to join the Victorian Manufacturing Council should be sent to the Executive Director of Sector Development, Department of Business and Innovation, GPO Box 4509, Melbourne Vic 3001. For more information call David Latina, Executive Director, Sector Development on (03) 9651 9768.


The Victorian Government manufacturing strategy: A more competitive manufacturing industry can be viewed at


The Victorian Competition and Efficiency Commission final report: Victorian Manufacturing Meeting the Challenges and the Victorian Government's response can be viewed at