The expansion of manufacturing as a result of COVID-19

Friday 18 December 2020

While the Australian manufacturing industry continues to expand during the COVID-19 crisis, Albury Wodonga is strongly positioned to return to capacity and remain competitive in the national and global manufacturing landscape.

As the most productive sector in Albury Wodonga measured by output, manufacturing injects $3.2 billion (22% of total output) into the local economy. This sector is also of a nationally significant size when compared to other regional centres across Australia.

The COVID-19 pandemic has revealed the importance of a local manufacturing supply chain and highlighted some of the state’s unrealised industry capabilities. NSW manufacturers are increasingly using new technology or employing advanced business models that allow them to compete based on value, particularly in more niche, low volume quantities.

A major win for the local manufacturing industry was announced by Circular Plastics (a joint venture comprising of Cleanaway, Pact Group and Asahi Beverages), with a major plastics recycling facility being built in Albury at a cost of about $45 million to manufacture plastic for the food and drink industry and divert material from overseas landfill.

The plant, which is expected to be operational by December 2021 and generate about 30 local jobs, is projected to process about 28,000 tonnes of plastic bottles and other recyclables a year, with Pact Group and Asahi Beverages committing to buying most of the recycled material.

With significant opportunities to supply products around Australia and globally, the Australian manufacturing industry is well placed to capitalise on our impressive reputation for quality manufacturing.

"With the encouraging lift in July, Australian manufacturing has expanded for two consecutive months for the first time since October 2019. Despite the improvement, weak spots persist. July’s expansion was driven by the two largest manufacturing sectors: the food and beverage and machinery & equipment sectors. Manufacturing employment, production and new orders were all higher than in June although the pace of improvement in new orders slowed over the month” said Ai Group Chief Executive Innes Willox[1].

With the NEXUS Industrial Precinct and Logic Wodonga on our doorstep selling quality industrial land at competitive prices, Albury Wodonga is well placed to provide a home for new and expanding manufacturers.