KEY POINTS
The textile, clothing and footwear (TCF) industries are diverse and cover a range of different products including made-up textiles, clothing, carpet, footwear and technical textiles.
The latest official statistics (2008-09) for the industries show that they contribute almost $5.2 billion in industry value-added, which is around 5.0 per cent of all manufacturing value-added (please note that industry value added has recently moved across to the new ANZSIC 2006 classification).
- In 2008-09, imports ($10.6 billion) were more than five times that of exports ($1.9 billion), up on the total manufacturing industry ratio of roughly 2:1.
- Australia's TCF industries have faced significant pressures to adjust to ever increasing global competition. Competition from Asia, in particular, has strongly affected the size and vitality of the industry over the last decade or so.
- The Government commissioned an independent broad-ranging review of the TCF industries in 2008 which was conducted by Professor Roy Green in consultation with an industry reference group.
- The TCF Review was publicly released on 19 September 2008.
- The TCF Review contained 15 broad ranging recommendations to encourage reform of Australia's TCF industries.
- The Government responded to the Review in its announcement of the new TCF innovation package as part of the Federal Budget on 12 May 2009.
- The TCF package provides $401 million from 2009-10 to 2015-16. Funding include $55 million redirected towards innovation, with additional funding of $10 million.
FACTS AND FIGURES
| |
2004-05 |
2005-06 |
2006-07 |
2007-08 |
2008-09 |
|
Industry Value Added ($million) |
$6.054 |
$5,553 |
$5,501 |
$5,761 |
$5,160 |
|
Investment ($million) |
$268 |
$187 |
$163 |
$140 |
$134 |
|
Employment (000s)1 |
54.4 |
52.5 |
52.4 |
43.4 |
50.4 |
|
Exports ($million) |
N/A |
$2,185 |
$2,272 |
$2,208 |
$2,208 |
|
Imports ($million) |
N/A |
$8,509 |
$8,950 |
$9,249 |
$10,643 |
|
BERD* ($million) |
N/A |
$38.3 |
$31.3 |
$33.0 |
N/A |
1 Data for year period is four-quarter average at November (i.e. 2008-09 data is four-quarter average at November 2009) Source: ABS
* Business Expenditure on Research and Development
Note: the ABS is in the process of moving away from ANZSIC 1993 towards ANZSIC 2006. Investment and employment are still at ANZSIC 1993 while industry value added, exports, imports and BERD have moved to ANZSIC 2006 (where there is no historical data for some indicators before 2005-06).
The TCF industries are facing significant global competition and have been undergoing structural adjustment for some time. Successful Australian manufacturers have generally moved from producing commodity goods to manufacturing specialised value-added goods that are differentiated by design or innovation. International developments, such as Free Trade Agreements, continue to present both opportunities and challenges for the TCF industries.
TCF innovation package
The package recognises the importance of the TCF industries, which employ over 50,000 Australians and underpin regional economies around the country. It aims to make the TCF industries stronger and more sustainable by supporting the development of new products and processes, especially at the high-tech, high-value end of the market. Under the package, the Australian Government:
- will introduce a new $30 million TCF Strategic Capability Program to support large projects that will boost innovation capacity and performance at the enterprise level.
- will establish a Clothing and Household Textile Building Innovative Capability Program to support investment and innovation – based on the TCF Strategic Investment Program, with $25 million in additional funding.
- established a TCF Industries Innovation Council bringing together business, unions, researchers and government to champion innovation in the sector and provide strategic advice.
- established a National TCF Innovation Network within Enterprise Connect to support collaboration between companies and between industry, researchers and educational institutions.
- retained the TCF Small Business Program, to improve business enterprise culture.
- commissioned the TCF Industries Innovation Council to provide further advice on the introduction of a voluntary ethical quality mark, voluntary national sizing standards for clothing and footwear, and a national anthropometric (human measurement) database; and
- will proceed with the 2010 TCF tariff reductions already enshrined in legislation.
The TCF package responds to the recommendations of the 2008 Review of the Australian TCF Industries by Professor Roy Green.