Australia's manufacturing problems are shown by the Iran war

It is from ABC Rural.

The topic is manufacturing.

The article was published on Sunday, May 24, 2026, at 6:12 am.

The Australian Industry Group says food production needs access to protective equipment and plastic packaging.

The Iran war has shown the weak parts of Australia's manufacturing sector.

There are problems with fuel and fertilizer supplies, and also with getting important manufacturing chemicals and plastic for food packaging.

Policies to build Australia's ability to make its own products are focusing on defense and energy, but they may not think about other important supplies.

Instead of waiting for policy changes, manufacturers are making their own plans.

More than the sum of its parts

Since the conflict started, a textile manufacturer in Geelong has had many new requests for products.

The company's boss, Samantha Van Zyl, says price changes are causing problems.

She is happy about the new attention, even though it brings new challenges.

She said, 'It has started a demand for local products and an opportunity for growth.'

But she also said, 'We are doing it with an extra layer of complexity that did not exist six months ago.'

Before the war, the company made a special fiber for emergency workers, but now it is hard to get the materials they need.

The only part of textile manufacturing not available in Australia is spinning wool and cotton.

The company has enough materials for current contracts, but prices for new products are changing quickly.

If the company asks three mills for yarn prices, they will give a price that is only good for 30 days.

Now that price is only good for three hours.

She is worried that this price volatility could slow down the development of solutions.

'Can't just be the finished product'

Sovereign capability means a country can manage its own resources and systems.

Samantha Delgos says geopolitical tensions show the importance of local manufacturing.

The term 'sovereign capability' is often used for defense, but it also applies to other areas.

Sovereign capability is about being able to supply essential goods when global supply chains fail.

Since 2020, the fashion and textile industry has had to deal with many disruptions.

The pandemic showed that Australia could not rely on other countries for face masks and essential equipment.

Local manufacturers were able to make many of the clothing and textile products needed for emergency services and healthcare.

The Australian Fashion Council wants uniforms for emergency workers to be made in Australia.

Australia's manufacturing history is complex, and there are many obstacles to self-sufficiency.

Labour and energy costs, and scalability, are some of the main obstacles.

The Australian Industry Group says capacity is categorized by skill and technology requirements.

Some products, like nuts and bolts, are low-intensity, while others, like car assembly, are mid-level.

Complex products that require imported technology are high-level.

Australia needs all levels of manufacturing to achieve sovereign capability.

'It can't just be the finished product that we're thinking about.'

'It's all those bits that get the product to market that are also important.'

Dressed for success

Australia has fallen behind in chemical and plastics manufacturing.

Louise McGrath says Australia needs capacity for all levels of manufacturing.

The role of chemicals and plastics in the broader manufacturing base is important.

The federal government's Future Made in Australia strategy does not include plastics or fabrics.

The fashion council developed its own 10-year national manufacturing strategy.

Major food manufacturers have been affected by the increased cost of resin for plastic containers.

The fashion council's strategy is to protect critical parts of the supply chain.

Australia could be one of the few countries that can make clothing from farm to finished product.

Governments could help stabilize the industry by driving demand for Australian-made products.

The Australian government could be a major purchaser of clothing and textiles.

The federal government spent $20 million on the 'Made Right Here' campaign.

There are many opportunities for Australians to support local industry and jobs.

Samantha Van Zyl hopes the Iran war disruptions will inspire a lasting manufacturing comeback.

She said, 'We have incredible Australian manufacturers ... why does it take events like this to force the hand?'

But she is confident the industry will endure.

'If you are good at what you do in manufacturing, well, you're still manufacturing.'

The article was published on Sunday, May 24, 2026, at 6:12 am.

The article was updated on Sunday, May 24, 2026, at 6:16 am.

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