Sectors such as marketing, administration, software, legal and even engineering are already experiencing this shift. When combined with pressures from migration, the employment landscape could face more disruption than it has in decades. Rebuilding the manufacturing sector is now viewed as part of a broader solution, intended to create practical roles similar to those introduced through post-war policies in the 1940s and 1950s.
Over the past several decades, Australia scaled back its manufacturing investment, shifting towards a service-based economy and outsourcing a significant amount of industrial production. However, rising global tensions, increased interest in defence and the impact of AI on white-collar jobs have renewed the focus on domestic industry. While traditional manufacturing relied on large, labour-intensive plants, modern technology makes it possible to operate smaller, more efficient facilities. This creates fresh job opportunities for workers affected by automation, provided that funding structures and policy settings evolve to meet the need.
Growing manufacturing capacity does not depend on building massive factories but on enabling a broad network of smaller businesses. To achieve this, more adaptable investment mechanisms will be required, particularly as current institutional funding tends to prioritise large projects in either the United States or Australia. Self-managed superannuation funds within Australia may offer more agile capital for emerging enterprises. Still, regulatory barriers and elevated energy prices pose substantial hurdles. Industry experts argue that the current reliance on remote wind and solar infrastructure is expensive and poorly executed, undermining its potential for supporting new manufacturing initiatives.
In addition to funding and energy, industrial relations remain a sticking point. Although no one is calling for a reduction in labour protections, some business leaders believe that employers should retain full control over operations without unions involving themselves in management decisions. Still, the most pressing issue may be whether legal and energy reforms can happen quickly enough to counteract the effects of job losses caused by AI. As nuclear energy and decentralised power systems become more accessible, new industrial openings may arise, but the timing is critical.
