Australian Industry Capability

The importance of sovereign capability in the Australian manufacturing sector

Australian Industry Capability

The disruptions caused by the war in Eastern Europe, the global pandemic, clogged up production lines and extensive delays throughout entire supply chains have meant a nation and its businesses with strong sovereign capabilities in manufacturing will be in a much better position to be more self-sufficient than those who don’t.

Having a strong local supply chain that strengthens Australia’s industrial sovereign capability should be mandatory in today’s disruptive environment. This can become a source of competitive advantage both for a country, and for the businesses within that country. Although Australia has lagged in recent OECD statistics for local manufacturing capabilities, there have been signs that manufacturing is returning to our shores, both with highly technical capabilities, and to large scale. With local businesses winning lucrative contracts to manufacture products made in Australia (such as electric buses, or projects within defence), Australia is certainly moving in the right direction towards increasing its sovereign capabilities.

At PRP, we strongly believe in enhancing Australian Industry Content (AIC) when reviewing our supply chain partners. With recent AIC content exceeding 80% for recent projects, we are putting our beliefs into tangible action at large scale. Due to strong local supply chain partnerships, we are mostly well positioned to quickly offer solutions to our customers by sourcing materials, services, and other resources locally. This allows us to be nimble footed and flexible in the way we can deliver value to our customers.

We consistently research on ways to increase the work we do with other local businesses, while also building long term mutually beneficial relationships. With our strong focus on local supplier relationships, this is a period that is exciting for everyone at PRP as we see more and more advanced manufacturing come back to Australia.