#smartaustralia - who let our industries leave?

When the world emerges from the wicked and brutal time of COVID-19, many countries will start to ask themselves about several of their key industry sectors (primary and manufacturing industries)- where have they gone and why? For Australia, this is going to be a tough conversation. While many will point to a range of industries that have departed Australia over the years, we must learn from the past to bring these industries and jobs back to Australia.

The coronavirus situation is horrific but we should take comfort that Australia, as a nation, remains fortunate. As a country, we are a net exporter of many goods and services (we produce more than we consume). Australia has a significant advantage over many other nations. If we are to capitalise on our advantages, if we want a return of thriving industries that left Australia (and we should), we must swallow the bitter pill of our previous missteps.

Australia lost its comparative advantage within the Asia Pacific region some years ago. Our unwillingness to make substantial changes across taxation, industrial relations and lift our productivity, saw industries disappear. In 2018, under the title, “if you don’t like change, you’re going to like irrelevance even less[1]”, I highlighted the car industry as such an example.

Australia must examine the sovereignty of primary industries. We must embrace the opportunity of thriving primary and manufacturing industries. To do this, we need to look for a new normal; those industries must be advanced, they must be more dynamic and willing to adapt. If we fail to learn from the past, our opportunities will only diminish.

We must embrace new ways of working-doing more with less, producing higher quality goods and services. We must allow (and support) our governments to set different conditions across those challenging areas highlighted above. I am not advocating taking pay cuts, less job security or job losses. I am encouraging a broader-based economy with more opportunities, more resilient to global shocks, more competitive. It’s about managing our sovereignty and reinvesting in our self-belief as a nation – Smart Australia.

[1] https://www.neilglentworth.com/commentary/2018/8/20/blog-post

Neil Glentworth