Imported Dependence is Australia’s Hidden Crisis
The face of Australian manufacturing has changed beyond recognition in recent years, and not for the better. Once a vital source of jobs, exports and national self-reliance, our manufacturing sector is now a hollow shell of what it used to be. It’s becoming harder to find locally made goods, and we are relying more on overseas imports. This decline cannot be ignored, and failing to arrest the fall leaves our country exposed and vulnerable.
This Albanese Labor Government is no friend of manufacturing, and its policies are ramping up pressure on local industries.
Manufacturers across the country are hurting and being forced to make difficult decisions. More than 1,400 manufacturing businesses have collapsed nationwide since Labor came to office.
Many local businesses tell me that rising electricity prices are their biggest challenge. Skill shortages and falling productivity are putting pressure, but skyrocketing energy costs are biting hardest. The latest inflation figures show that electricity prices have surged by 37.1 per cent over the past 12 months. Last month, I met cane farmer Peter Doyle on his farm near Mackay. He’s doing everything he can to manage costs; shifting irrigation times, chasing tariffs, installing solar; yet his bills keep climbing.
I stood up in Parliament during Question Time and asked the Minister for Energy and Climate Change directly: “When will Peter’s electricity prices come down?” The Minister had no answer. Instead, he repeated the same line about renewables being cheap, even as the reality is a system out of control, costing families and businesses dearly.
The Australian public is paying the price for a broken system. Every Australian who buys food, runs a small business, or relies on energy-intensive services feels it. It’s time the Government faces reality, delivers affordable power, and provides a plan that actually works.
In my role as Shadow Assistant Minister for Manufacturing and Sovereign Capability, I have spoken to manufacturers across the country. Countless stories confirm that rising energy costs are crippling businesses, with little investment or Government support. Many are forced to cut shifts, lay off workers, downsize operations, pass costs onto consumers, or shut altogether.
Australia is now ranked dead last among developed nations for manufacturing. Its share of the economy has plunged to a record low of just 5.1 per cent in the June quarter of 2025. That isn’t merely a decline; it’s a structural surrender.
Countries like the United States, Germany, Japan, and South Korea are doubling down on manufacturing, creating incentives, investing in energy stability, and backing advanced industrial capability. They understand that if you don’t make things, you cannot control your future.
Meanwhile, Australia is importing thousands of products that we once produced locally. Australia is dangerously exposed, economically and strategically.
COVID showed how fragile global supply chains can be. At least then the flow of goods only slowed; it didn’t stop. But imagine a conflict or trade dispute that completely cuts supply. Imagine the tap turned off by a nation we rely on, or key shipping channels blocked. Our entire economy would be upended, and Australia would face a sovereignty crisis. Forget the toilet paper fights at the shops, because shelves and warehouses would be empty; trucks would simply stop; our borders would be exposed, and essentials like medicines would become scarce. We must make things here at home, small and large; physical and technological; edible and wearable; for our health and for our defence. We can not afford not to invest in manufacturing.
The Government can and must act now. In a world of fragile supply chains, shifting geopolitics, and rising global competition, the countries strong in manufacturing are the ones capable of standing on their own.
A boost to Australian manufacturing is a boost to Australia’s future.
ENDS
Caption: Rising energy costs, collapsing factories, and overseas dependence threaten Australia’s manufacturing and national security. Member for Dawson, Andrew Willcox, says action is needed now.
Contact: Amanda Wright | Media & Communications Adviser
P | 07 4944 0662 M | 0455 456 705 E | Amanda.Wright@aph.gov.au