Manufacturing Skills Australia s response to New South Wales Manufacturing Industry Action Plan Issues Paper. Manufacturing Skills Australia

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1 Manufacturing Skills Australia s response to New South Wales Manufacturing Industry Action Plan Issues Paper Manufacturing Skills Australia November 2011

2 This report has been prepared by Manufacturing Skills Australia in response to the New South Wales government s Manufacturing Industry Action Plan issues paper. Manufacturing Skills Australia (MSA) is the national industry skills council recognised by the Australian Government to ensure that the skill needs of manufacturing enterprises are being met. It is responsible for workforce development initiatives which include providing industry intelligence and advice to inform government policy, supporting the development, implementation and improvement of nationally recognised training and qualifications, and providing skills and training advice to individual enterprises to assist with training and development processes. Our vision is to be the pre-eminent organisation in Australia fostering and advocating for the workforce skill development needs of a thriving industry. We provide bi-partisan leadership and value the empowered and informed input of industry stakeholders. We strive to provide high quality information and workforce development resources to support the participation of industry in developing an innovative, highly productive and globally competitive manufacturing industry. MSA is funded by the Department of Education, Employment and Workplace Relations (DEEWR) and works closely with Skills Australia, industry associations, unions, training providers, government agencies and employers to continually evolve and improve skills for manufacturing. Contact for this report: Bob Paton Chief Executive Officer bobpaton@mskills.com.au November 2011 Manufacturing Skills Australia PO Box 289, NORTH SYDNEY NSW 2059 AUSTRALIA ph Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 2 of 13

3 Manufacturing Skills Australia s response to the New South Wales government s Manufacturing Industry Action Plan Issues Paper 1. Executive summary Manufacturing Skills Australia (MSA) is pleased to respond to the New South Wales government s Manufacturing Industry Action Plan Issues Paper. In its response to the paper, MSA has addressed a number of key areas. These key areas and MSA s responses are summarised below. High Australian dollar The high Australian dollar continues to impact on manufacturing in New South Wales. For manufacturing enterprises to remain sustainable, they need to be innovative and highly skilled. Support needs to be provided for manufacturing managers to gain the skills necessary to foster innovation and develop within the enterprise a culture of life-long learning. Carbon tax The introduction of the carbon tax in 2012 will impact on manufacturing in New South Wales. While there has been much discussion about the possible negative effects of the tax, there will also be significant opportunities for manufacturing in New South Wales. Enterprises will need to be supported to make the transition to a low carbon economy and to develop products and services that take advantage of the opportunities that will be presented. The manufacturing workforce will need to be highly-skilled and innovative with the ability to adapt and transfer skills from subsector to subsector and from enterprise to enterprise. Increasing global competition and pace of change Manufacturers in New South Wales operate in an increasingly globally connected world. The rate of technological change is unprecedented and enterprises need skilled workers who are able to adopt new technologies quickly and to be able to problem solve and value-add through innovation. A major issue facing New South Wales manufacturing enterprises in this globally connected, high-tech world is the low levels of literacy and numeracy that many workers have will see the introduction of the new Foundation Skills Training Package 1. So that enterprises may gain the benefit of this Training Package, there will be a need to review current funding mechanisms for vocational training both pre-employment and also for existing workers. 1 Innovation and Business Skills Australia, 2011 Foundation Skills Training Package accessed November 2011 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 3 of 13

4 Scale The entry and growth of the manufacturing sectors of China and India with the associated low wages within these countries make it difficult for manufacturers in New South Wales to compete on the same scale when it comes to mass production of goods. The future of manufacturing lies not in mass production but rather in mass customisation and flexible specialisation. MSA has received anecdotal feedback that enterprises within in New South Wales are already moving in this direction. Innovation incentives Another factor that disadvantages New South Wales manufacturers competing in the global marketplace is the constraints arising from skilled labour shortages. As the resources sector continues to grow, the competition for skilled labour will also increase. The Review of the National Innovation System 2 found that training and investing in skill development and upgrading were necessary for enterprises to achieve increased productivity and innovativeness. Regional/sectoral difference Within New South Wales, the majority of manufacturing businesses are concentrated in the Sydney regional area (19,105 or 67.2%). In June 2007 in Sydney, Textile, leather, clothing and footwear (TCF) manufacturing accounted for 12.5% of manufacturing businesses 3. The TCF manufacturing sector throughout Australia is struggling to compete with mass produced and significantly cheaper imports. However some subsectors within TCF manufacturing are continuing to grow. These subsectors are the bespoke sectors which provide high-value production accompanied by personalised service, such as fashion design and tailoring, dry cleaning and digitised embroidery. Support needs to be provided for bespoke sectors which provide high value-added, personalised products. Access to appropriately skilled workers is often an issue with many businesses reporting that they are unable to access appropriate nationally accredited training. Skills shortages and an ageing manufacturing workforce As workers move away from manufacturing, the negative publicity being given to manufacturing and a perception that manufacturing is dirty, dangerous, under-paid and male dominated is doing little to entice new entrants into the industry 4. There is also the added issue of workers not having the foundation skills needed to either up-skill or re-skill into new roles and/or sectors. As manufacturing in New South Wales transforms itself 2 Department of Innovation, Industry Science and Research,2008 Review of the National Innovation System Chapter 5 pg 56 accessed November Manufacturing Skills Australia, 2011 Statistics for manufacturing in New South Wales accessed November New South Wales Business Chamber, 2011 Manufacturing futures released April 2011 pg 29 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 4 of 13

5 into an innovative, high-tech, value add industry, workers are going to need higher level skills and the ability to participate in lifelong learning 5 6. Shortage of innovation management capabilities Innovation within enterprises is driven by strong support from management. However management practices in Australian enterprises leave significant scope for improvement 7. If there is a lack of management skill within an enterprise, the enterprise is unlikely to be an innovative-active enterprise. The provision of access to up-skilling opportunities for all levels of management within an organisation is essential. Industry leadership NSW Industry Training Advisory Boards (ITABs) provide industry leadership to help sustain and enhance the State s provision of goods and services for the community s benefit. NSW ITABs can and should play an important role in assisting the small/niche subsectors within manufacturing identify skill needs and also assist with access to funding for training. This role will increase in importance as NSW moves to an entitlement model for the Vocational Education and Training (VET) sector. Industry Skills Councils such as MSA also have an important role to play in providing industry leadership. MSA works closely with its NSW stakeholders to identify new and emerging skills and standards and to then ensure these are incorporated into qualifications and Skill Sets. Confidence affected by negative perceptions of manufacturing Manufacturing is currently undergoing an intense period of transformation as it moves to a highly technical, highly skilled, high value-add industry. There is a shift from a labour intensive industry structure to a technology intensive, sustainable, carbon-aware structure. As manufacturing undergoes this transformation, there is a need for public perceptions of manufacturing to change. The negative publicity, accompanied by competition for skilled workers in the resources sector, is making it very difficult to attract workers with the necessary foundation skill levels to the industry. It is important that the Industry Action Plan includes provisions that support the manufacturing industry to overcome the negative perceptions held by the general public. 5 New South Wales Business Chamber,2011 Manufacturing futures released April 2011 pg Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing 2020 A foresighting discussion paper released September 2011 pg Department of Innovation, Industry, Science and Research, 2009 Management Matters in Australia: Just how productive are we? Released November 2009 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 5 of 13

6 2. Industry issues MSA believes that manufacturing enterprises need a long-term, comprehensive vision to which stakeholders and government can commit energy, resources and focus; one that targets key growth opportunities and directs strategic effort in workforce development and market growth; a vision which excites and captures the younger generation and creates strong connections across enterprises and sectors 8. As the Industry Skills Council for manufacturing, MSA welcomes the development of the Manufacturing Industry Action Plan for New South Wales. Manufacturing in New South Wales is a dynamic industry currently facing a multitude of challenges. MSA agrees with the Future Manufacturing Council s belief that Australia s manufacturing future lies in high technology, high value-add, high-skill manufacturing 9. High Australian dollar The high level of the Australian dollar is currently impacting on manufacturing in New South Wales. It is both a blessing and a curse in that it is making the importation of goods cheaper, however for exporters, the high dollar is making it very difficult to compete with cheaper mass-produced foreign goods. The volatility of the Australian dollar has become more marked in the last 10 years with it ranging from as low as 50c US in to the current level of above parity with the US dollar. However the trend to a higher-value Australian dollar has been apparent for most the last decade (see Attachment A). According to the Future Manufacturing Council, To compete globally, firms need to provide innovative solutions and services that exploit revenue streams other than those arising from simple production. 10 A focus on providing manufacturing enterprises with the management skills that will enable them to foster a culture of innovation and services so that they not only survive in these turbulent times, but succeed, will be essential in maintaining a strong and viable manufacturing industry in New South Wales. Proposed Carbon Tax There has been extensive discussion and rhetoric around the carbon tax. However its introduction in 2013 will have an impact on manufacturing in New South Wales. IBISWorld 11 predicts that the initial impact may be negative, however the long term impact will see a growth in employment nationally by approximately 1.5million people by For New South Wales manufacturers generally, the impact will be felt through increased energy costs. Some sectors, such as heavy metal manufacturers and iron and steel producers will be impacted more directly by the carbon tax. 8 Manufacturing Skills Australia, 2011 Environmental Scan Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing to 2020 A foresighting discussion paper released September Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing to 2020 A foresighting discussion paper released September IBISWorld, 2011 The Clean Energy Plan and Australia s economy Special Report released July 2011 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 6 of 13

7 Approximately 35% of primary metal and metal product manufacturing in Australia is located in New South Wales 12. The Commonwealth government s industry assistance packages will offset some of the carbon tax cost. However there will be a need for these industries to develop strategies and skills that will reduce further their carbon footprint. MSA s Competitive Manufacturing qualifications and newly introduced Sustainability Training Package have the potential to provide enterprises with the transformative skills and processes needed within these industries. Up-skilling workers at all levels within enterprises will be imperative to enable enterprises to not only survive but thrive in a carbonconstrained economy. On the positive side, there will be increased opportunities for New South Wales manufacturers as a result of the growth of renewable energy technologies. On the services side of manufacturing, there will be a growth in demand for technologies that reduce energy costs and carbon emissions as well as maintenance engineers who are able to provide value-added solutions. Increasing global competition and pace of change Manufacturers in New South Wales operate in an increasingly globally connected world. The rate of technological change is unprecedented and enterprises need skilled workers who are able to adopt new technologies quickly and to be able to problem solve and value-add through innovation. Various authors 13 have identified that the ability to problem solve is key to innovation within organisations. Furthermore enterprises need to foster a culture that supports problem-solving, creativity, entrepreneurship, initiative and drive. A major issue facing New South Wales manufacturing enterprises in this globally connected, hightech world is the low levels of literacy and numeracy that many workers have. In 2006, 46% of the working age population in New South Wales had literacy levels below the level to function adequately in work and society and nearly 53% had below functional level numeracy. Of greater concern for the growth of a high-skilled, adaptive and flexible workforce is the high percentage of the working age population of New South Wales whose problem-solving skills were below functional level over 70% 14 had below functional level problem-solving skills will see the introduction of the new Foundation Skills Training Package 15. So that enterprises may gain the benefit of this Training Package, there will be a need to review current funding mechanisms for vocational training both pre-employment and also for existing workers. Scale The entry and growth of the manufacturing sectors of China and India with the associated low wages within these countries make it difficult for manufacturers in New South Wales to compete on the same scale when it comes to mass production of goods. 12 Manufacturing Skills Australia, 2011 Metal, engineering and boating industries in New South Wales accessed November Curtin, P., Stanwick, J., and Beddie, F. (eds), 2011 Fostering enterprise: the innovation and skills nexus research findings National Centre for Vocational Education Research, Adelaide 14 Australian Bureau of Statistics, 2008 Adult Literacy and Life Skills, Survey, Summary Results, Australia, 2006 (Reissue) Table 3 15 Innovation and Business Skills Australia, 2011 Foundation Skills Training Package accessed November 2011 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 7 of 13

8 According to both the Future Manufacturing Council 16 and the NSW Business Chamber 17, the future of manufacturing lies not in mass production but rather in mass customisation and flexible specialisation. MSA has received anecdotal feedback that enterprises within in New South Wales are already moving in this direction. An example would the boating industry which has several small but highly successful manufacturing enterprises competing in both national and international markets. These enterprises are highly specialised, providing innovative and value-added manufacturing solutions for customers both in Australia and internationally 18. Innovation incentives Another factor that disadvantages New South Wales manufacturers competing in the global marketplace is the constraints arising from skilled labour shortages. As the resources sector continues to grow, the competition for skilled labour will also increase. According to the Australian Bureau of Statistics (ABS), at the end of June 2009, 90% of manufacturing businesses in New South Wales employed less than 20 people 19. These enterprises are unable to compete with the multinational resources companies who are able to offer significantly higher wages. The skilled labour constraints being experienced and that are likely to continue to be experienced has and will continue to drive a need to do more with less. This need to increase efficiency and productivity within enterprises will drive enterprise-based innovation such as the introduction of new technology and processes. In , 48.5% of manufacturing businesses in Australia were classified as innovation-active businesses 20. (Data for New South Wales specifically is not available.) The major divers for innovation were identified as profit-related (78%) followed by responsiveness to customer needs (48.3%) and improving quality of goods and/or services (46.3%) 21. Nearly 40% of innovation-active manufacturers identified the lack of access to additional funds as the major barrier to innovation followed by the cost of development or introduction/implementation (32.1%) and lack of appropriately skilled people (30.9%). Incentives that support innovation through providing access to additional funding, reducing costs associated with development or introduction/implementation of innovations and up-skilling of the workforce will have the most benefit for innovation-active businesses. The Review of the National Innovation System 22 found that training and investing in skill development and upgrading were necessary for enterprises to achieve increased productivity and innovativeness. Agarwal and Green 23 cited the key impediments to innovation in enterprises as short-term business thinking, under-investment in education and training and risk-adverse attitudes. 16 Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing to 2020 A foresighting discussion paper released September 2011pg NSW Business Chamber, 2011 Manufacturing futures released April 2011 pg Boating Industry Association of NSW, 2011 phone interview 19 Manufacturing Skills Australia, 2011 Statistics for manufacturing in New South Wales accessed November Australian Bureau of Statistics, 2010 Innovation in Australian Business, Measures of Innovation Table 1 21 Australian Bureau of Statistics, 2010 Innovation in Australian Business, Drivers of Innovation Table 1 22 Department of Innovation, Industry Science and Research,2008 Review of the National Innovation System Chapter 5 pg 56 accessed November 2011 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 8 of 13

9 For manufacturing businesses that are not innovation-active, the majority (57.2%) did not identify any barriers to innovation. Of those businesses who did identify barriers, the greatest barrier was the lack of appropriately skilled people (19.5%) followed by uncertain demand for new goods or services (19.4%) 24. For these businesses, providing improved access to vocational training for existing workers and high-skilled entry-level workers who are literate, numerate and able to problem-solve may assist them to become innovative and sustainable. Regional/sectoral differences Within New South Wales, the majority of manufacturing businesses are concentrated in the Sydney regional area (19,105 or 67.2%). Within the Sydney area there are also marked differences with the majority of manufacturing in the Inner Sydney area (14.8%) followed by the south-western and western areas of St. George-Sutherland (9.9%), Fairfield-Liverpool (9.6%) and Canterbury- Bankstown. The number of manufacturing businesses in each of these areas is greater than the number of manufacturing businesses in Newcastle which is the next largest region for manufacturing in New South Wales 25. In both Canterbury-Bankstown and Fairfield-Liverpool regions, manufacturing is the largest employer accounting for nearly 25% and over 20% of employment respectively 26. In June 2007 in Sydney, there were 2,906 fabricated metal product manufacturing businesses which accounted for 14.5% of manufacturing businesses. Textile, leather, clothing and footwear (TCF) manufacturing accounted for a further 12.5% of manufacturing businesses 27. The TCF manufacturing sector throughout Australia is struggling to compete with mass produced and significantly cheaper imports. However some subsectors within TCF manufacturing are continuing to grow. These subsectors are the bespoke sectors which provide high-value production accompanied by personalised service, such as fashion design and tailoring, dry cleaning and digitised embroidery. These subsectors are experiencing a shortage of skilled workers. As a result of industry demand, MSA has introduced a new qualification in digitised embroidery to meet the needs of the sector. Furthermore MSA is currently undertaking a project to meet the demand for skilled machinists for both the TCF sector and also for the furnishing sector. There are shortages of experienced/skilled machinists in both sectors, especially within the subsectors of soft furnishings, upholstery and shade sail construction within the furnishing industry. Again these are high-value, customised production areas that also incorporate high levels of personalised service. Skills shortages and an ageing manufacturing workforce Anecdotal evidence gathered by MSA for its 2012 Environmental scan has identified ongoing skill shortages in the engineering trades, for wood machinists and sewing machinists, for glass and glazing workers who have a breadth of skills within the glass and glazing industry and for aircraft engineering 23 Curtin, P., Stanwick, J., and Beddie, F. (eds) 2011 Fostering enterprise: the innovation and skills nexus research findings National Centre for Vocational Education Research, Adelaide pg Australian Bureau of Statistics, 2010 Innovation in Australian Business, Barriers to Innovation Table 2 25 Australian Bureau of Statistics,2010 Counts of Australian Businesses, including Entries and Exists, Jun 2007 to Jun 2009 Businesses by Industry Division by Statistical Division by Employment Size Ranges, Department of Education Employment and Workplace Relations, n.d. Regional Profile for Sydney accessed November Manufacturing Skills Australia, 2011 Statistics for manufacturing in New South Wales accessed November 2011 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 9 of 13

10 maintenance engineers. Many of the workers with skills in these areas are being enticed to the resources sector which is able to offer them significantly higher wages. As these workers move away from manufacturing, the negative publicity being given to manufacturing and a perception that manufacturing is dirty, dangerous, under-paid and male dominated is doing little to entice new entrants into the industry 28. There is also the added issue of workers not having the foundation skills needed to either up-skill or re-skill into new roles and/or sectors. As manufacturing in New South Wales transforms itself into an innovative, high-tech, value add industry, workers are going to need higher level skills and the ability to participate in lifelong learning Lack of appropriately skilled workers has been identified by both businesses that are innovation-active and by businesses that are not currently undertaking innovation as a major barrier to innovation. So that New South Wales manufacturing can transform, the Industry Action Plan will need to provide for the recognition of the skills of the current unskilled workforce as well as providing access to training for existing workers and the up-skilling of already qualified workers. One of the barriers to a manufacturing workforce with the skills required for the future is the current funding arrangements which prevent workers who currently hold a qualification from re-skilling in another qualification at the same level. Furthermore, the current onerous skills recognition processes for unskilled workers actively discourage these workers from participating in skills recognition. Shortage of innovation management capabilities Innovation within enterprises is driven by strong support from management. However management practices in Australian enterprises leave significant scope for improvement 31. The Cutler Review 32 found that innovative enterprises focused on the knowledge, business practices and management proficiencies that allow business enterprises to transform their product and service offerings, their capabilities and their ability to satisfy customer and market needs in novel and more imaginative ways than their global competitors. If there is a lack of management skill within an enterprise, the enterprise is unlikely to be an innovative-active enterprise. The provision of access to up-skilling opportunities for all levels of management within an organisation is essential. Currently MSA developing Skill Sets to support the up-skilling of frontline managers employed in enterprises within its industry sectors. However it is difficult for enterprises to access funding to support training using Skill Sets. Industry leadership NSW Industry Training Advisory Boards (ITABs) provide industry leadership to help sustain and enhance our State s provision of goods and services for the community s benefit. 28 New South Wales Business Chamber, 2011 Manufacturing futures released April 2011 pg New South Wales Business Chamber,2011 Manufacturing futures released April 2011 pg Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing 2020 A foresighting discussion paper released September 2011 pg Department of Innovation, Industry, Science and Research, 2009 Management Matters in Australia: Just how productive are we? Released November Department of Innovation, Industry Science and Research, 2008 Review of the National Innovation System Chapter 5 pg 55 accessed November 2011 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 10 of 13

11 One aspect of this ITAB role is in supporting and assisting small/niche subsectors to access nationally-approved training. However these sub-sectors can often meet a major barrier where the training providers (RTOs) will not offer needed training courses because they consider the number of enrolments unviable 33. A case study - This is the situation currently faced by the NSW soft furnishings sub-sector. In response, MSA and its NSW ITAB are undertaking a project in conjunction with Job Services Australia (JSA) to assist workers in this subsector to obtain transferable skills that will support ongoing employment. Successful outcomes will help shape a model transferable to other subsectors similarly affected. This is just one example of the day-to-day role of NSWITABs in providing industry leadership, with practical assistance to support critical skills needs and capability in our State. NSW ITABs can and should play an important role in assisting the small/niche subsectors within manufacturing identify skill needs and also assist with access to funding for training. This role will increase in importance as NSW moves to an entitlement model for the Vocational Education and Training (VET) sector. Industry Skills Councils such as MSA also have an important role to play in providing industry leadership. MSA works closely with its NSW stakeholders to identify new and emerging skills and standards and to then ensure these are incorporated into qualifications and Skill Sets. MSA also provides free online workforce development tools, MSkills Manager and MySkills, to industry that assist in identifying skill needs in enterprisse and current skills held by workers. These tools are assisting enterprises to identify and articulate their needs when applying to funding for training. Confidence affected by negative perceptions of manufacturing Manufacturing is currently portrayed not only by the media but also by government institutions such as DEEWR and the ABS negatively. Statistically the manufacturing sector s share of industry gross value add (GVA) is lower that it has been historically. However in real terms the industry has grown by 0.8% in the last decade 34. The industry is currently undergoing an intense period of transformation as it moves to a highly technical, highly skilled, high value-add industry. There is a shift from a labour intensive industry structure to a technology intensive, sustainable, carbon-aware structure. As manufacturing undergoes this transformation, there is a need for public perceptions of manufacturing to change. Manufacturing is no longer...a dirty industry with boring repetitive tasks and one with little by way of high paying jobs or career paths. 35 The modern manufacturing worker is highly skilled, technology savvy with well developed foundation skills who is able to transfer his/her skills from workplace to workplace and value-add to the enterprise in which they are employed. Manufacturing is no longer the domain of males as the new technology is removing the need for brute strength. Also many enterprises are finding that women offer skills such as fine motor skills and attention to detail that may be lacking in male workers. 33 Manufacturing Skills Australia, 2011 MSA Environmental Scan 2012 Survey for RTOs (unpublished) 34 Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing to 2020 A foresighting discussion paper released September 2011 pg 5 35 Australian Manufacturing Workers Union 2009, in NSW Business Chamber, 2011 Manufacturing futures released April 2011 pg 29 Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 11 of 13

12 The negative publicity, accompanied by competition for skilled workers in the resources sector, is making it very difficult to attract workers with the necessary foundation skill levels to the industry. It is important that the Industry Action Plan includes provisions that support the manufacturing industry to overcome the negative perceptions held by the general public. One step in changing these negative perceptions and attracting potential new entrants to manufacturing is through the school system. Careers advisors and teachers in secondary schools often have negative perceptions of the manufacturing industry and these impact on the information provided to students when choosing post-school options. There is a need to ensure that these professionals have the correct information regarding the skills needed to pursue a successful career in the manufacturing industry. According the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006, manufacturing is one of 19 divisions. However whenever manufacturing data is compared to other industries data, it is compared as one of only four divisions agriculture, mining, manufacturing and services. 16 divisions are grouped together as services industries and currently account for 77% of Australia s GVA 36. Taken individually, Manufacturing was the second largest contributor to Australia s GVA in June Only the Financial and insurance services sector was a larger contributor, contributing 10.95% as opposed to Manufacturing s 9.13%. The Manufacturing Industry Action Plan needs to include a plan to change the current perception of manufacturing as an industry on its death bed to one of an industry that is a modern, sophisticated technology-driven industry that supports a New South Wales economy that is dynamic and diversified. -END- 36 Future Manufacturing Industry Innovation Council, 2011 Trends in manufacturing to 2020 A foresighting discussion paper released September 2011 pg 6 37 Australian Bureau of Statistics, 2011 Australian National Accounts: National Income, Expenditure and Product, Jun 2011 Table 6 Gross Value Added by Industry, Chain Volume Measures Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 12 of 13

13 Attachment A Manufacturing Skills Australia response to NSW Manufacturing Industry Action Plan.docx Page 13 of 13