Published 28-01-2020

AUTOMOTIVE TRANSITION MAINTAINS MANUFACTURING

22-01-2020

A new report from the Department of Industry reveals that close to 75 per cent of former supply chain companies have remained in business following the closure of the Ford, Holden and Toyota car manufacturing plants in 2016 and 2017.

The report, titled “Australian Automotive Industry – Transition following the end of Australian motor vehicle production”, analyses 144 businesses that received support through the Automotive Transformation Scheme (ATS) in 2013 and looks at their survival rates through to 2018.

Releasing the report, Minister for Industry, Science and Technology Karen Andrews said the Government has a strong set of policies and programmes to encourage all manufacturers to embrace new technologies, especially in cases of industry transition.

“This report shows locally owned businesses achieved the best results by drawing on existing skills to diversify and take advantage of new markets,” Minister Andrews said.

“Supply chain businesses have transitioned effectively by moving into new sectors such as truck and bus manufacturing, as well as agriculture and medical technologies.

“For future growth, electric vehicle markets offer significant opportunities for businesses to participate further in global supply chains.

“Our manufacturers also have strengths in emerging areas of light weight components, battery recharging and cooling, and autonomous vehicle technologies.”

Minister for Employment, Skills, Small and Family Business, Senator the Hon Michaelia Cash said the report details the impact of the Automotive Transformation Scheme on the transition of the industry’s labour force.

“These findings reinforce a recent report from my department, which found that as a result of the actions taken by the Coalition Government working with industry, 82 per cent of affected workers were able to secure work, with the majority satisfied with their circumstances. Four per cent of these started their own business,” Minister Cash said.

“The successful outcomes for car-industry workers show what can be achieved when industry and government work together. The support provided included tailored career advice, skills and training assistance, health and wellbeing initiatives and job search assistance through the Government’s Stronger Transitions package.”

The Australian, Victorian and South Australian Governments together with Holden, Ford and Toyota have provided over $380 million in support for automotive workers and supply chain businesses.

 

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