New research commissioned by the Australian Fashion Council has revealed that Victoria’s fashion manufacturing industry has reached a critical point in its evolution.

While the sector’s current and potential value was estimated at almost $1 billion, the state’s textile, clothing and footwear manufacturing has shed 18 percent of its value in the past five years.

Despite the downturn, key policy interventions, industry and government could together inject an additional $22 million into the Victorian economy and create a further 1,500 jobs, according to the study by researchers at RMIT University.

In contrast, without preferencing and investing in the sector, on its current trajectory $98 million of value will be lost by 2030, along with 700 jobs.

Lead researcher Associate Professor Jenny Underwood said: “Our research found a steady decline in Australia’s textile, clothing and footwear manufacturing over the past five years.

“With the right investment there’s promise for a turnaround, as the industry is resilient and adaptable.

“While the shift towards digital technology usually means fewer jobs, we found this is the opposite for the textile industry.

“Technological investment can lead to better, higher value jobs, lifting the overall wages for the sector.”

The research suggests the sector can be transformed into a female-led manufacturing powerhouse, with Victoria at the forefront – over half of businesses have more than a 60 percent female workforce.

“Survey respondents identified strong consumer demand for locally made products and government procurement support as the most important factors for the industry’s future success.

“Victoria’s textile, clothing and footwear industry will play a key role in the transition to a circular clothing economy by making manufacturing more efficient, reducing waste and increasing local production.”

Associate Professor Jenny Underwood is Associate Dean Research and Innovation in RMIT’s School of Fashion and Textiles.

Picture: Australian Fashion Council