The growth of automation and digital technologies has transformed the manufacturing sector in Australia. As Industry 4.0 continues to evolve, the demand for crucial digital skills is skyrocketing.
The Australian Government is fostering growth and innovation in the sector, prompting many companies to pivot towards digital skills to meet modern market demands and sustain their competitiveness.
The Surge in Digital Skills Demand
Digital skills such as data analytics, robotic engineering, and automation are becoming essential in the manufacturing industry.
Businesses are increasingly investing in reskilling and upskilling their existing workforce while also recruiting new talent with relevant expertise.
This trend is expected to continue as digital transformation accelerates.
State government initiative
The Northern Territory’s manufacturing sector is set for a boost as the Advanced Manufacturing Ecosystem Fund (AMEF) gains traction. The fund aims to accelerate the growth of advanced manufacturing capabilities in the region, fostering innovation and driving economic development.
Managed by the Advanced Manufacturing Growth Centre (AMGC) in partnership with the NT Government, the fund provides targeted financial support to businesses and projects that demonstrate the potential to create high-value jobs and contribute to the Territory’s economic diversification.
Federal government support
The National Skills Agreement, launched on 1 January 2024, marks a five-year partnership between the Commonwealth, states, and territories aimed at strengthening the vocational education and training (VET) sector in Australia.
This agreement aims to deliver a national VET system that provides high-quality, responsive, and accessible education, boosting productivity and helping Australians gain skills for well-paid, secure jobs. TAFE institutions will be central to these efforts.
States and territories will receive up to $3.7 billion in additional Commonwealth funding over five years, increasing the total Commonwealth investment in VET to $12.6 billion.
Moreover, the Federal Government has established Jobs and Skills Councils, including one for the manufacturing sector. The Manufacturing Industry Skills Alliance will focus on ensuring the industry has a skilled workforce to drive growth through advanced manufacturing and innovation, with a strong emphasis on digital skills training.
Industry Initiatives
Industry groups are actively advocating for the reskilling and upskilling of Australia’s manufacturing workforce. A July 2022 report by Ai Group’s Centre for Education & Training highlights the need for an education and training system that aligns with the changing skill requirements of Industry 4.0.
The report includes a case study on Watkins Steel, demonstrating how heavy investment in staff skills development has been pivotal to the company’s successful digital transformation. Watkins Steel Director Des Watkins notes, “For every line of robotics commissioned, we have employed a further ten people…Robotics creates jobs. It doesn’t replace jobs.”
The road ahead
The push towards digital jobs in the manufacturing sector presents an opportunity for businesses and their workforce.
Investing in digital skills and technology can make companies more efficient, productive, and competitive on a global scale.
With government and industry bodies actively promoting upskilling, the future looks promising for Australia’s manufacturing sector.
