Crisis in Victorian manufacturing: Opposition calls for action amid rising insolvencies

Victoria recorded the highest number of manufacturing insolvencies in Australia in 2024, according to new analysis. This rise in business closures highlights ongoing struggles within the state’s manufacturing sector, exacerbated by high taxes, rising energy costs and extensive regulatory burdens.

ASIC data reveals that during the term of the Albanese government, 415 manufacturing firms in Victoria have gone under—the second highest nationwide after NSW. This accounts for nearly a third of the national total, with Victoria leading in insolvencies last year at 223 companies.

In response, Deputy Leader of the Opposition and Shadow Minister for Industry, Sussan Ley, asserted that the current industry policies under the Labor government are failing. “Victoria is a great state with manufacturers that have the potential to lead globally, but Labor’s economic policies are crushing them,” Ley claims.

Furthermore, Ley criticised the effectiveness of the National Reconstruction Fund (NRF), pointing out that despite the surge in insolvencies, the NRF has funded only one project in Victoria—a $13 million investment in an advanced manufacturing facility for quantum computing applications using lab-made diamonds.

Industry groups and unions have also expressed serious concerns about the operating environment for businesses in Australia. They have called on governments to address what they describe as a crisis in domestic manufacturing. This sentiment is reinforced by the recent collapse of Oceania Glass in Dandenong South, which put 260 jobs at risk and marked the end of Australia’s sole architectural glass manufacturer.

Industry Minister Ed Husic defended the government’s strategy, emphasising the importance of rebuilding Australia’s manufacturing capability for both economic and strategic interests. “The National Reconstruction Fund was established to help us stand on our own and not be overly reliant on concentrated supply chains,” Husic explained.

This ongoing debate underscores the critical challenges facing the manufacturing sector in Victoria, with calls for more effective government intervention and support to prevent further industry decline.

Picture: credit canberraliberals.org.au