The Australian Fashion Council (AFC) has called for government intervention to turn around the declining textile, clothing and footwear (TCF) sector, warning that the total industry value will decline by 18% with the loss of more than 700 jobs by 2030.
- Research conducted by RMIT University has revealed that the almost one billion dollar Victorian TCF has shed 18% of its value in the past five years.
A SECTOR IN DECLINE: In 2023, the Victorian TCF manufacturing industry generated over $930 million for the Australian economy and employed over 9,000 people, 53% of which were women.
- TCF exports were valued at $334 million, nearly $200m more than Victoria’s wine exports.
- If left at the current trajectory, total industry value will decline by 18% with the loss of more than 700 jobs by 2030.
GROWTH STRATEGY: Despite the downturn, key policy interventions, industry and government can together inject an additional $225 million into the Victorian economy and create a further 1,500 jobs.
- This would be particularly beneficial for women in the sector with a survey showing over half of businesses have more than a 60% female workforce compared to 28% in Australian manufacturing, generally.
- The research suggests the sector can be transformed into a female-led manufacturing powerhouse, with Victoria at the forefront.
FROM DECLINE TO GROWTH: Modelling shows that implementation of a proposed policy suite would result in:
- An additional $225 million contributed to the Victorian economy, bringing the total annual value of the sector to $1.03 billion;
- A $133 million increase in wages;
- A 15% increase to the Victorian TCF manufacturing workforce;
- Creating over 1,526 jobs, employing 9,900 workers with 6,200 positions estimated to be filled by female employees.
KEY RECOMMENDATIONS: To prevent further industry decline and drive productivity, innovation and higher wage growth for the industry, comprehensive reform is needed across five key areas:
- Include TCF manufacturing as a priority sector in the Made in Victoria 2030 policy.
- Strengthen government procurement policies to increase local content in uniforms, workwear and personal protective equipment (PPE) contracts.
- Develop a revitalised TCF skills and training programme to fill workforce skills gaps.
- Co-invest in advanced technology and jobs of the future for a sustainable, circular clothing economy.
- Develop a national TCF manufacturing strategy, led by the Victorian Government and industry.
THE RESEARCH: Commissioned by the Australian Fashion Council in partnership with Epson Australia, the research for the report was led by the RMIT University team, with future state forecast modelling by RPS Consulting.
- The authors are Jenny Underwood, P Street, A Payne, T Carol, K Kennedy, A Singh, & G McCorkill.
WHAT THEY SAID:
While the shift towards digital technology usually means fewer jobs, we found this is the opposite for the textile industry. Technological investment can lead to better, higher value jobs, lifting the overall wages for the sector. Survey respondents identified strong consumer demand for locally made products and government procurement support as the most important factors for the industry's future success. Victoria’s textile, clothing and footwear industry will play a key role in the transition to a circular clothing economy by making manufacturing more efficient, reducing waste and increasing local production.
— Jenny Underwood
Associate Professor / Associate Dean (Research and Innovation)
RMIT’s School of Fashion and Textiles
