According to the Australian Bureau of Statistics, Australia’s economy has flatlined. Victoria had the highest number of businesses (129,000) going bust in 2024.
Additionally, data from the Victorian Parliamentary Budget Office suggests Victoria is also the most taxed state in all of Australia, at $5,408 per person in 2025-26.
As a result, the South East Melbourne Manufacturers Alliance (SEMMA) is calling on the Australian Government to acknowledge small and medium enterprise manufacturers and the role they play within Australia’s economy.
“It seems that at every turn, local manufacturers and our supply chain are being asked to cut costs, pay more tax, navigate endless rolls of red tape and battle for what’s fair in a global marketplace,” says SEMMA CEO, Honi Walker. “But at SEMMA, we believe our local jobs content should not be compromised for profit.”
While some sectors such as rail and defence seem ‘immune’ to current economic pressures, Honi believes everyone pays more through the supply chain. Especially when considering situations such as the current fuel supply issue.
“It doesn’t matter what you produce,” she says. “The result is the same – less after-tax profit, less for investment, less for hiring that new apprentice or recent graduate, less for R&D, less for growth and innovation and less inspiration.”
Thus, Honi says local jobs content must be safe-guarded. SEMMA is advocating for manufacturers and suppliers within this space to ensure they are safeguarded.
“SEMMA recently provided a submission to the Productivity Commission in the application of a safeguard on fabricated structural steel,” she says. “Our local suppliers and manufacturers must be protected, or we risk reputations and lives.
“OEMs in rail and defence, for example, must abide by our local jobs content rules. New regulations come into play in Victoria on 1 July, and we will have a new Local Jobs Content Commissioner who will need to hit the ground running.”
While SEMMA might be based in the southeast of Melbourne, it has an eye on the national economy and its place in it. According to AI Group, manufacturing is the sixth largest industry in Australia, generating $137 billion in value-added output and employing 930,000 people. Recent data from AI Group reveals it also contributes 12.4 per cent to Australia’s exports and 7.9 per cent to capital expenditure.
Last month, SEMMA presented the first of five Australian Manufacturing BLUEPRINT 2026 Election Forum Series – five forums each focused on one of its five pillars of growth to invigorate industry. The first pillar, ‘Economic’, featured the financial sector, industry experts and those from the political sphere, followed by an interactive panel.
The event was an opportunity for manufacturers to come together to discuss, debate and dissect current policy and offer solutions through SEMMA’s BLUEPRINT platform.
“Manufacturers make our economy,” Honi says. “It’s time policy makers recognised and acknowledged the significant contribution our manufacturing sector makes to the Australian way of life.
“If you’d like to have your say, join us. Become a SEMMA member and we’ll keep raising the profile and voice of SME manufacturing.”
