NSW government releases industry policy, setting manufacturing growth targets up to 2040

The NSW government has released its industry policy, linking three missions: Housing, Net Zero & Energy Transition, and Local Manufacturing, with the latter including what it says are “ambitious” targets around growth in value added and local content in rolling transport stock.

According to a statement from trade and industry minister Anoulack Chanthivong on Wednesday, the industry policy was developed with input from peak bodies, academia, and state government agencies, and will use “regulation, procurement, planning, strategic land use, and infrastructure building” to drive change.

Manufacturing targets for the state were given as

• Real growth in Gross Value Added, on average, over the years to 2031;
• GVA growth equal to, or greater than Gross State Product, on average, for the years 2031 to 2040; and
• A 50 per cent minimum local content target for future rolling transport stock by 2035.

“With three new Local Manufacturing targets, we have demonstrated a real commitment to supporting local manufacturing to promote a dynamic, sustainable, and diversified economy,” said Chanthivong.

“Addressing the housing crisis, supporting NSW through the transition to Net Zero, and growing our local manufacturing industry are among our key priorities.”

The statement cited the potential of technologies including “big data, artificial intelligence, quantum, virtual reality, and robotics” to make the state competitive in complex and high-value products, as well as in aiding the transition to net zero.

The Housing and Net Zero & Energy Transition missions of the policy were described as part of a strategic direction in creating a “thriving and diversified economy”. 

The mismatch between housing supply and demand will be addressed by measures including better productivity through the uptake of technologies and innovation in “the production and use of sustainable building materials” with “modular construction and the potential use of automation and robotics cited as ways to improve the speed of builds.

The policy follows the Western Australian government – which goes to the polls this weekend – pledging $50 million earlier this week.for housing innovation, including grants up to $3 million “to local businesses that manufacture modular or prefabricated housing or housing inputs”.

The NSW government’s new industry policy can be accessed here.

Picture: credit Anoulack Chanthivong