Australia’s manufacturing sector is at a crossroads, from having been one of the strong points of national economic strength for decades. The contribution of manufacturing towards the country’s GDP has shrunk from about 13% some three decades ago to just a little over 5%, reflecting a structural fall that has raised an alarm among industry leaders, economists, and policymakers. In the face of such a background, one of the strongest voices for strategic overhaul has come from ANCA Group CEO Martin U. Ripple. His recent five-point plan aims not just to revive the sector but to reposition Australia as a serious player in advanced global manufacturing.
Ripple leads one of Australia’s most successful high-tech manufacturing companies, ANCA, a world leader in precision CNC grinding machines, and he does not believe Australia’s decline is irreversible. Rather, it reflects years of fragmented policymaking, underinvestment in innovation, and an overreliance on raw-material exports. The message is clear: Australia can compete globally, but only if it acts now.
At the heart of Ripple’s plan is a call for binding local content requirements in government procurement. He argues that public contracts should guarantee a minimum percentage of Australian-made inputs—a practice already utilized in countries such as the United States and Germany. Ripple thinks this could prompt domestic production, support Australian jobs, and firm up supply chains. “If we want Australian factories to thrive,” he says, “the government must become the sector’s first and strongest customer.” For many manufacturers, this is just the lifeline they need.
The second reform focuses on reducing the regulatory burden that has long hindered businesses. Ripple points to layers of compliance at both federal and state levels, slowing down operations and increasing costs-particularly for small and mid-sized manufacturers. Simplifying regulations and cutting red tape by even 20% could considerably improve productivity. Streamlined laws, faster approval systems, and clearer processes would help Australia compete with more agile manufacturing economies in Asia and Europe.
Third, Ripple recommends expanding export access, in particular through new and strengthened trade agreements. The high-value, precision-engineered goods of Australia have huge potential in world markets, but trade friction limits that prospect.
Opening up new pathways-for example, a revived EU-Australia trade deal-could open the door for local manufacturers that are at the leading edge of innovation but struggle to reach the world. ANCA itself exports 98% of its machines to more than 45 countries, proof of what is possible when world-class products meet supportive policy ecosystems.
The shift toward value-added manufacturing forms a very important part of Ripple’s vision. Australia has relied for too long on raw or low-level value-added exports of resources. Ripple advocates for a transition similar to that seen in advanced manufacturing nations: going up the value chain into precision engineering, robotics, automation, and complex production. Quality, innovation, and intellectual property-things Australia is already strong at-would be emphasized. Not only does value-added manufacturing command better margins, but it also fosters quality, well-paying, future-ready jobs.
Fifth, and finally, comes the need for better collaboration between government and industry. Without long-term, coordinated planning, says Ripple, Australia will continue to lag behind its international competitors. Ripple would create a national manufacturing roundtable or advisory body where policymakers, industry leaders, researchers, and unions would come together regularly with the aim of developing a shared road map for Australia’s industrial future, including workforce development, research incentives, and advanced manufacturing hubs.
Ripple’s sense of urgency stems from the observation of warning signs across the sector, like factory closures, rising energy costs, skill shortages, and underinvestment in automation. And he says the consequences of inaction will be great: Australia risks losing not just competitive edge but industrial sovereignty, especially critical in today’s world, where supply-chain resilience has become a geopolitical priority.
But Ripple remains bullish. The success of ANCA across the globe, born out of Melbourne and now competing on the world stage, shows Australian manufacturing can succeed when innovation, investment and policy intersect. “Our story shows that Australia doesn’t need to be a low-cost manufacturer to win,” he says. “We need to be a smart manufacturer.”
At a time when Australia is facing economic changes and increasing geopolitical tensions, the stakes could not be any higher. What Ripple offers is a plan of action in rebuilding a sector so crucial for jobs, exports, and even national resilience. Yet to be seen is whether this is a moment that will be seized by policymakers, but for now, voices like Ripple’s move the conversation forward, with a call to reclaim Australia’s manufacturing future.
