Programs like the NSW Government’ s Regional Investment Attraction Package and the Australian Government’ s Modern Manufacturing Initiative have demonstrated the effectiveness of targeted financial support in accelerating business relocation, expansion and innovation.
Infrastructure development plays a critical signalling role. Long-term investments in transport links, utilities, digital connectivity and industrial land show both investors and communities that a region is serious about industrial renewal. Another vital approach is the creation of industrial clusters – collaborative ecosystems that support shared services and knowledge, research collaboration and workforce development. An example of such collaboration is the Hydrogen Hub at Port Kembla, where efforts are underway to attract investment in hydrogen production and energy infrastructure. This region’ s industrial heritage, combined with port access and workforce capabilities, makes it a natural location for new manufacturing ventures aligned with Australia’ s energy transition.
2. SKILLS AND WORKFORCE DEVELOPMENT The advanced manufacturing workforce will require new skills that regional areas must align their training programs with. This can include digital literacy, data analysis, robotics, mechatronics, systems integration, additive manufacturing or advanced materials science. TAFE and university partnerships, local apprenticeships, industry-led upskilling and micro-credential programs form the backbone of this alignment. These initiatives ensure that training is responsive, flexible and accessible, meeting the pace of technological change while addressing regional workforce challenges.
For example, in the Illawarra coaldominated region of NSW, TAFE is investing in the Heavy Industry Manufacturing Centre of Excellence, an initiative focused on reskilling workers for emerging roles in digital and automated manufacturing. Workers displaced from steelmaking or mining are gaining new, transferable skills that align with clean, automated production environments. The centre’ s partnerships with local employers ensure training pathways are relevant and lead directly to job opportunities. Similarly, in Lithgow, the recently opened Central West Adaptive Skills Hub provides hands-on learning opportunities in STEAM disciplines. This facility offers microcredentials in renewable energy, digital fabrication and circular economy practices. Co-designed with industry, the programs meet emerging job demands and support diverse learner pathways.
Workforce development is also about retention and attraction. As competition for skilled workers intensifies across regions, efforts to improve job quality, workplace flexibility and lifelong learning will be key. Government programs that support employer-sponsored training, wage subsidies for apprenticeships and place-based skills forecasting are vital to this goal.
3. INFRASTRUCTURE AND DIGITAL CONNECTIVITY In the age of Industry 4.0, modern infrastructure is a critical enabler of regional manufacturing transformation. Advanced manufacturing depends on robust logistics networks, reliable and affordable energy and high-speed digital connectivity. Digital infrastructure is especially crucial for enabling real-time production monitoring, supply chain integration, automation, cloud-based collaboration and remote maintenance. High-speed broadband and mobile coverage allow regional manufacturers to engage in distributed manufacturing systems, where design, production and logistics are managed across multiple sites, often in collaboration with metro-based or global partners. For example, the NSW Government’ s Regional Digital Connectivity program is delivering mobile coverage and broadband upgrades to underserved areas. This investment helps level the playing field for businesses in regional areas, allowing them to compete in technology-driven manufacturing markets.
Physical infrastructure, like transport links, water and energy systems, and industrial precincts, is equally important. Efficient freight corridors, intermodal terminals and port access allow regional manufacturers to participate in just-in-time supply chains and reduce costs associated with moving goods to domestic and international markets. Looking to former coal-fired power stations provides a window into how infrastructure can play an important role in driving further opportunities for transitioning economies, particularly in the manufacturing industry.
Importantly, coordinated infrastructure planning must ensure that digital and physical assets are delivered in tandem. Investment in one without the other limits the potential of modern manufacturing to take root. Equally, planning should integrate future needs such as 5G, EV charging and smart utilities.
4. POLICY AND GOVERNANCE SUPPORT Effective policy and governance frameworks are essential to enabling the transformation of regional economies through advanced manufacturing. A key requirement is the development of long-term industrial and regional transition strategies that focus
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