Australia lost more manufacturers in 2025/2026 than any year since the 2008 financial crash, a ConryTech report shows.
The report by Conry Tech, a climate tech business manufacturing in Melbourne, is entitled “No Future Made in Australia”.
Despite government efforts to revive manufacturing, the report found data is not backing up these claims.
Industrial regions like Dandenong, which have been historically strong, are losing manufacturers faster than anywhere else in the country, as businesses swap the factory for the CBD office block.
The report is based on 20 years of Australian Bureau of Statistics business count data, including entries, exits, and survival rates.
Conry Tech founder and CEO, Sam Ringwaldt, does not see how Australia’s manufacturing industry can survive.
“Money that the government sets aside for manufacturing consistently ends up in the pockets of Australia’s biggest brands who don’t need it. And when new priorities or emergencies emerge, like rising fuel costs, manufacturing investment is quickly sacrificed,” he said.
Key findings from the report include:
- Australia lost 11,134 manufacturers in the 2025 / 26 financial year. More than in any year since 2008/9
- Among all manufacturing companies operating in Australia in 2022-23, more than a third had exited by the end of the 2025-26 financial year (35%)
- Manufacturing exit rates are now almost identical to entry rates (12.3% and 12.5%). Only mining and agriculture have lower entry rates
- Victoria has the slowest growth of manufacturers in Australia since 2015 (+1.3%). In this period, of the 10 local authorities with the biggest net loss of manufacturers, 8 were based in Victoria including Kingston, Monash and Knox
- Since 2023, Melbourne CBD and North Sydney are the fastest growing manufacturing hubs. Marrickville and Dandenong have lost the most manufacturers
Ringwaldt said manufacturers have abandoned former industrial hubs.
“A lot of so-called manufactures are businesses that simply assemble products from parts that were made overseas,” he said.
“These businesses need less space to “build” products and can run their operations from the CBD. This makes sense, but I am concerned that Australia is doing less real manufacturing than ever. Makers are not sufficiently incentivised to build here rather than abroad.”
Conry Tech is a climate tech and HVAC innovator founded by Ron Conry and Sam Ringwaldt.