The Australian Fashion Council (AFC) has teamed up with RM Williams to develop Australia’s first national manufacturing strategy for the fashion and textile industry. As part of the partnership, the AFC and RM Williams will conduct conversations with members of the industry in Adelaide, Brisbane, Sydney, Melbourne and Perth to create a comprehensive roadmap to revive the sector’s onshore capabilities. Timing is everything The landmark initiative looking to safeguard the fashion indus
ion industry’s $7.2 billion export contribution comes at a time of growing trade uncertainty and when fragile global supply chains are top of mind.
“This is a good moment to come out with this publicly, because I think there is much more interest in local manufacturing because of what’s happening with the tariffs,” Tara Moses, RM Williams COO, told Inside Retail.
“It does actually change the equation for Australian manufacturing. So it does make it more lucrative to manufacture in Australia and ship to the US,” she continued.
“It becomes more of a neutraliser, shall I say, from a cost perspective.”
Australian brands that are producing in China and exporting to the US are experiencing 145 per cent tariffs on some items – if they were being produced in Australia, the tariff would be 10 per cent.
After the consultation period, the AFC and RM Williams will work with stakeholders across the government, industry and education sectors to develop policy recommendations and investment frameworks that will allow Australian fashion businesses to compete on the global stage.
“It didn’t decline overnight, and it won’t come back overnight. It’s going to take a lot of stakeholders to make this possible,” Moses stated.
The hidden load
The AFC CEO, Jaana Quaintance-James, has often wondered whether the high proportion of women working in Australia’s fashion and textile manufacturing sector is the reason there has been little investment in protecting it.
The industry creates 500,000 Australian jobs, 77 per cent of which are occupied by women. It pays $15 billion in wages annually.
According to research by the AFC, every $1 million invested locally generates $1.2 million in economic returns. The council is seeking to highlight this as an opportunity for job creation, regional development, technology and advanced manufacturing.
“Clothing is the only commodity that has reduced in price, whereas all other commodities increased; we’ve become a bit disconnected with how our clothes are made,” Quaintance-James told Inside Retail.
“We’re really on a mission to change that trajectory in Australia for Australian fashion and clothing – that’s why we’re doing Fashion Week and that’s why we’re doing the manufacturing strategy,” she added.
“We want Australians to feel super proud of the industry that – with very little investment and policy to support – is actually killing it.”
New value proposition
More robust onshore manufacturing capabilities for the fashion and textile industry not only stand to benefit Australian brands but also consumers.
Quaintance-James acknowledged that Australian brands can’t compete on prices with the likes of Shein and Temu, but they can compete on high quality and ethical production.
“When customers buy from an Australian brand that’s made in Australia, they can actually have confidence that the working conditions are decent and that their money is staying within Australia and supporting the economic environment,” Quaintance-James explained.
The aging workforce that keeps Australia’s fashion and textile manufacturing sector running means that this initiative is urgent, if not nearly too late.
“This is the moment, and we don’t have time to waste. From an Australian manufacturing perspective, the median age of staff is 57 – people are aging out,” Quaintance-James elaborated.
“They’re taking their skills with them, and once they leave, it’s even harder to pass those skills down,” she continued.
However, the AFC and RM Williams are feeling positive about the potential of Australia’s first national manufacturing strategy for the fashion and textile industry following their first consultation in Adelaide.
“The people that were there, from an industry perspective, were quite inspiring about what they were already doing – and we got a lot of synergy around the challenges that a lot of us are facing,” Moses concluded.
“It was definitely very positive and lots of good takeaways that feel very actionable.”