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Queensland enjoys the benefits of a healthy and diverse manufacturing sector despite an observable contraction. This contraction reflects a decline in manufacturing’s share of Australian and global gross domestic product. We consider that the Queensland government has opportunities to further improve the manufacturing environment.

Manufacturing is a significant contributor to Queensland’s economy. It generates approximately $20 billion in gross value added per year and employs around 168,000 workers.

In September 2016, the Queensland Government asked the Queensland Productivity Commission to conduct an inquiry into manufacturing to identify policies to improve the sector’s productivity and competitiveness.

This final report sets out a policy action plan to support a strong and diverse manufacturing sector.

The inquiry has found that policy settings can be shifted from predominantly sector-based programs towards broad-based reform of the business environment.

While many of the proposed reforms transcend the manufacturing sector and will require a sustained effort to implement, we believe that broad based reform will better address the key concerns of manufacturers in Queensland— energy, skills and training, tax, procurement, red tape and barriers to innovation, and benefit the wider Queensland economy.

The inquiry been aided by discussions and submissions from manufacturers, unions, peak business bodies, government agencies, academics and innovation experts. The Commission is grateful to all stakeholders who contributed to this inquiry.

Please note: this report was sent to the Queensland Government on 31 October 2017 and publicly released on 1 May 2018.

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