Prime Minister Anthony Albanese has announced an ambitious plan to revitalise Australia’s advanced manufacturing sector in a move that could have a significant impact on the HVAC&R industry.
In a speech to the Queensland Press Club on Thursday, Albanese highlighted the need for local manufacturing to turn the country into a “renewable energy superpower”. To do this, he says, Australia needs to “aim high, be bold, build big”.
In his speech, Albanese announced that the government will soon introduce the Future Made in Australia Act to parliament. He said the move – which bears close resemblance to the US Inflation Reduction Act – comes in response to the economic issues caused by unstable supply chains, skyrocketing energy prices, inflation, rising interest rates, and the cost of living crisis. It represents what he describes as a future Australia “moving to the beat of a new economic reality”.
“Aside from the devastation of floods and bushfires, Australia has endured a once-in-a-century global pandemic, followed by the most significant energy crisis in 50 years,” Albanese said. “These global shocks and their aftershocks continue to affect our economy and our budget.”
He noted that many other countries are already moving to shore up their local industrial and manufacturing capabilities to build resilience against international hardships.
“All these countries are investing in their industrial base, their manufacturing capability, and their economic sovereignty,” Albanese said. “We must recognise there is a new and widespread willingness to make economic interventions on the basis of national interest and national sovereignty.”
Green boost
While the federal government is yet to release any significant details about the plan, a major focus of Albanese’s speech was the transition to renewable energy.
“Our resources, both in and above the ground, are essential to the future of global energy,” Albanese said.
The strategy incorporates three components:
- Act and invest at scale
- Capitalise on Australia’s natural advantages and build sovereign capability
- Invest in the foundations of economic success, including affordable and reliable clean energy.
In his speech, he also committed to giving the recently established Net Zero Economy Authority “every tool it needs to support resource communities through the coming change”. Interestingly, Albanese also promised to create greater opportunities for “Australians in our regions and suburbs to get a TAFE qualification or a university degree”.
Is the devil in the detail?
So far, the plan is only an overview; the federal government is yet to release any specifics. However, the focus on advanced manufacturing, green transition, and TAFE education suggests that the act could present opportunities for businesses in the Australian HVAC&R industry. The federal budget, to be announced on May 14, could provide more clarity.
What are your thoughts on the announcement? What measures do you think the federal government should take to support Australian HVAC&R manufacturing? Let us know in the comment section below.
Image courtesy of Clayton Cardinalli via Unsplash.