House debates

Wednesday, 7 February 2018

Adjournment

Manufacturing Industry

7:55 pm

Photo of Luke HowarthLuke Howarth (Petrie, Liberal Party) Share this | | Hansard source

I have some great news in relation to manufacturing in Australia. At the last election the coalition government clearly outlined its goals for jobs and growth. The government understands that by stimulating the economy and providing businesses with opportunities, they will create jobs. And we've seen some great results in defence manufacturing, free trade agreements, company tax reductions for small- and medium-sized business in particular, and innovative manufacturing as a result of our plan. Some 400,000 jobs were created in 2017; a lot of those are in Queensland, and 75 per cent are full time.

So knowing that these jobs are being created now, what if I told you, Mr Speaker, that we could manufacture any plastic product cheaper in Australia than in low-wage countries like China or India or elsewhere in Asia? Would you believe me? You should, because it's true! This involves reshoring jobs from Asia back here to Australia.

In 2014 in this place I highlighted a local manufacturing business that was thriving, called the Evolve Group. This great homegrown company, managed by Redcliffe local Ty Hermans, has continued to thrive. Evolve Group have outgrown their Clontarf factory in Petrie; they're moving to a larger site on the south side of Brisbane. I first met Ty many years ago, and I've had the pleasure of seeing his business grow. The business involves innovative manufacturing and design, and reshoring jobs from Asia back to Australia.

Last week I had the opportunity to tour his south-side factory, along with the Minister for Home Affairs. Currently the Evolve Group are manufacturing 25 independent advanced manufacturing lines, including automotive, medical, agriculture and consumer goods. They export these goods to 127 countries. Despite having an enviable record of achievement in local manufacturing, they constantly have to convince businesses that they can provide products cheaper and faster than manufacturers overseas.

Ty went on to tell me that one of his latest customers initially wasn’t willing to speak to him because they didn't believe an Australian company could manufacture a plastic product cheaper than China. However, Evolve was able to manufacture it at a 10 per cent cheaper price, and revise the design to ensure that it is a sturdy Australian made product. This product was actually a bottle top. If anyone shops at Woolworths and buys water—$8 for a slab of 24 bottles—you'll see those little blue caps on top. They were all being made in China; they're now being made in Brisbane. All of those products are being reshored back to Australia, which is providing more jobs. Evolve is also starting an innovative pool design company, which will soon begin manufacturing in the Moreton Bay region in my electorate.

The other good news is that the Australian Bureau of Statistics confirms that five of the 16 subsectors in the manufacturing industry have seen substantial growth. One of those subsectors is the clothing and footwear sector, which has seen a massive 41 per cent growth, employing an additional 11,000 people. The manufacturing industry has had its 14th straight month of growth—great news!—and business confidence in manufacturing is at its highest level since 2003. This is all proof that the coalition government's industry innovation agenda is breaking through and getting results. We want local businesses to continue to create jobs, reshore products from Asia back to Australia so that there are more jobs for local people in our electorates. To ensure this continued growth, the coalition government announced last year that it will invest $100 million to drive innovation in the manufacturing industry through government grants. We also signed an agreement with Germany to work together to modernise our manufacturing industries.

Every single manufacturer has the potential to be forward thinking like the Evolve Group, and I encourage all Australian manufacturers to examine their business models and look at where they can emulate the practices of successful businesses. By providing the vanguard of manufacturing innovation, we will be able to service new markets and develop new products. We want Australian companies to look to Australian manufacturers first, and not just assume Chinese or overseas companies can provide the goods cheaper than our local companies. I encourage every Australian company to get a quote from an Australian manufacturer. You might be pleasantly surprised.

Debate interrupted.

House adjourned at 20 : 00