The Australian Government’s $1.5B Modern Manufacturing Strategy will provide a significant boost to the Food Manufacturing industry, which has been identified as one of the six National Manufacturing Priorities by the Department of Industry, Science, Energy and Resources.
The Modern Manufacturing Strategy consists of three separate initiatives, the details of which are still being developed, with further information to be released over the coming months. At Foodability Co. we are dedicated to assisting our clients in the planning and development of their applications, and as such we have reviewed the current information available and highlighted the key points of these initiatives in this article.
This article will be kept up to date over the coming weeks and months as new information is released by the Department of Industry, Science, Energy and Resources, so be sure to follow us or check back here regularly for the latest information and key dates.
The three initiatives that comprise the Modern Manufacturing Strategy include:
- The Modern Manufacturing Initiative – total funding of $1.3B
- The Supply Chain Resilience Initiative – total funding of $107.2M
- The Manufacturing Modernisation Fund (Round Two) – total funding of $52.8M
Initiative 1: The Modern Manufacturing Initiative (MMI)
The MMI will provide co-funding for large manufacturing projects that have broad sectoral benefits across three targeted streams:
- Manufacturing Collaboration Stream
- Manufacturing Translation Stream
- Manufacturing Integration Stream
See the comparison table below for more information on the three streams of the modern manufacturing initiative.
- Trading corporations.
- There will be no specific business size requirements.
- Funding will be focused on supporting businesses to scale.
Initiative 2: Supply Chain Resilience
This initiative will see the Australian Government work with industry to better understand critical supply chains and domestic and international supply vulnerabilities.
The government will work with industry to:
- identify the essential goods and services critical to Australians at times of crisis
- map industry supply chains and Australia’s manufacturing capabilities
- evaluate supply chain resilience under normal circumstances and in possible crisis situations
- identify supply options for critical products to address vulnerabilities in domestic and international supply chains
Eligible businesses will be able to access support to establish or scale a capability that addresses a supply chain vulnerability.
- Projects will need to demonstrate that they address a supply chain vulnerability for a critical product or input identified in a Sovereign Manufacturing Capability Plan
- Projects will need to demonstrate that they can result in a measurable strengthening of the supply chain
- Available from the 1st of July, 2021
- Guidelines outlining eligibility and merit criteria will be made available in the first half of 2021
Initiative 3: Manufacturing Modernisation Fund (MMF) - Round Two
Round Two of the MMF will support approximately 150 firms to fast-track capital investment to build modern, agile and digitally enabled manufacturers who can speed up Australia’s economic recovery as part of the government’s JobMaker plan.
The program will help businesses to:
- take on new employees
- upskill workers
- invest in new technology to support Australia’s COVID-19 recovery
- address barriers to growth and innovation
Available Funding and Support:
- Co-funding of large-scale grants of $100,000 to $1 million on a 3-to-1 funding basis.
- Provide support for transformative investments in technologies and processes
Projects must demonstrate:
- Expected job growth
- Upskilling of existing employees
Round two will open before the end of 2020