The following article provides an update on the Australian Government’s Modern Manufacturing Strategy and how the funding initiatives can aid businesses in this modern manufacturing sector.
What is it?
The Modern Manufacturing Strategy (the Strategy) is the Australian Government’s action plan for Australia to be recognised as a reliable, high-quality and sustainable manufacturing nation. The Strategy is aimed to not only drive economic recovery from the COVID-19 pandemic but to build national resilience.
- Resources Technology & Critical Minerals Processing
- Food & Beverage
- Medical Products
- Recycling & Clean Energy
The Australian Government will be investing $1.46 billion, targeting six (6) specific areas of industries named the National Manufacturing Priorities, a combination of Australia’s strengths and growth opportunities.
The strategy focuses their investment on projects that will create collaborative environments, encourage the market to invest and partner with businesses, research organisations and governments. The key initiatives through which the funding is provided are:
Modern Manufacturing Initiative ($1.3 billion)
To transform manufacturing businesses and assist them to scale up, translate ideas into commercial success, create jobs and, integrate into local and international value chains. There will be annual funding rounds for the Modern Manufacturing Initiative in the first half of each year.
Supply Chain Resilience Initiative ($107.2 million)
The Supply Chain Resilience Initiative will aim to help Australia address identified gaps in critical supply chains. As well as being a part of the Government’s JobMaker plan, the initiative is developed to identify and address vulnerabilities in domestic and international supply chains for critical products. Applications for this initiative is open from 1 July 2021 until 12 August 2021.
Manufacturing Modernisation Fund ($52.8 million)
To modernise small and medium-sized manufacturers’ manufacturing processes, adopt new technologies, deliver quick action to unlock business investment on shovel ready projects. This funding is particularly aimed toward modern, agile and digitally-enabled manufacturers who can ‘speed up’ Australia’s economic recovery. Applications for this fund is currently closed.
As part of the Supply Chain Resilience Initiative, funding for businesses to invest in capabilities to address supply chain vulnerabilities is open for application until 12 August 2021. The Supply Chain Resilience Initiative provides up to $2 million to establish or scale a manufacturing capability or a related activity. To be eligible, you must be a manufacturing business or a business within the manufacturing supply chain in the following field of critical products:
- Biopharmaceuticals (medicines)
- Agricultural Product Chemicals.
More information on the eligibility and the application process for the Supply Chain Resilience Initiative can be found here.
In addition, the Advanced Manufacturing Commercialisation Fund is presently open for application until 30 June 2022. This fund of up to $1 million is for small to medium manufacturing enterprises to commercialise new products and processes. The projects must align with one or more of the 6 National Manufacturing Priorities identified above. Eligible project activities include:
- collaboration and networking with other businesses to develop a product and establish market potential
- collaborating with research and technology hubs/centres to test ideas and share knowledge
- engaging external professionals to provide commercialisation and market advice, such as identifying market opportunities and developing a market strategy
- creating distribution strategies, such as market entry pathway and identifying domestic supply chains
- developing a product for commercialisation using high-value manufacturing techniques or processes such as rapid prototyping or using state-of-the-art manufacturing plant
- acquiring, constructing, installing and commissioning new machinery and equipment to facilitate the project (limited to 25% of grant funding)
- research collaboration as it relates to the validation/viability of later stage commercialisation
- approved production and post-production manufacturing activities related to commercialisation
More information on the eligibility to apply for the Advanced Manufacturing Commercialisation Fund can be found here.
The department of Industry, Science, Energy and resources provides a range of manufacturing funding opportunities under the Modern Manufacturing Strategy. In particular, funding for the Manufacturing Collaboration Stream will be open from 11 August 2021 until 9 September 2021 for very large projects that support business-to-business and business-to-research collaboration, aiming to encourage businesses to work together and leverage the strength of the Australian research sector. The grants range from $20 million to $200 million and again, focuses on the long-term transformation in the 6 National Manufacturing Priority areas identified above. More information on the objectives and eligibilities of the Manufacturing Collaboration Stream can be found here.
How will it affect our clients?
One of the main focuses of this Strategy is to align research and innovation capabilities and programs to support the priority areas.
With clients in all six National Manufacturing Priorities having strong research and manufacturing capabilities, we highly encourage our clients to explore the opportunities and potential benefits available.
Please contact Wrays if you need further information on the initiatives outlined in this article.