Outlook for the TCF Manufacturing Sector Fact Sheet 

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) for the industries show that they contribute around $2.8 billion in industry value-added, which is around 2.6 per cent of all manufacturing value-added.
  
  
• In 2008, imports ($9.9 billion) were more than six times that of exports ($1.6 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

Source: ABS
*Business Expenditure on Research and Development

The TCF industries are facing significant global competition and have been undergoing structural adjustment for some time.  Australian manufacturers have generally moved from producing commodity goods to manufacturing specialised higher value-add and niche market goods—i.e. specialised textiles for emergency and defence services.  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 45,000 Australians and underpin regional economies around the country. It aims to make the TCF sector 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;
  
  
• 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;
  
  
• establish a TCF Industries Innovation Council bringing together business, unions, researchers and government to champion innovation in the sector and provide strategic advice;
  
  
• establish a National TCF Innovation Network within Enterprise Connect to support collaboration between companies and between industry, researchers and educational institutions;
  
  
• retain the TCF Small Business Program, to improve business enterprise culture;
  
  
• commission 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
  
  
• proceed with the 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.