The Minns Labor Government has today released the state's first NSW Industry Policy to promote collaboration across industry, the innovation sector, and trade businesses, to give firms the confidence they need to invest and grow in NSW.
Built around three connected missions - Housing, Net Zero & Energy Transition, and Local Manufacturing - the NSW Industry Policy sets out the Government's approach to the NSW economy of the future.
The policy will also set three ambitious new Local Manufacturing targets to position NSW manufacturing to capitalise on global market opportunities.
The Minns Labor Government is committed to building a better NSW with a thriving and diversified economy, and the NSW Industry Policy will provide a clear strategic direction across all Government agencies and programs.
This approach will ensure industry support is clear and consistent, driving investment to help build a productive and resilient economy fit for the future.
This first-of-a-kind policy, consolidates actions from the private sector, research institutions, and Government agencies to help address some of the most significant current and future challenges facing the state.
The NSW Industry Policy was informed by extensive consultation with industry peak bodies, academia, and engagement with NSW Government agencies.
It consolidates targets across numerous government initiatives and identifies key sectors to enable success across all industries.
The Minns Labor Government will use regulation, procurement, planning, strategic land use, and infrastructure building to help drive change.
The Government will also partner with industry and other stakeholders to deliver on skills and education, innovation and technology, and trade and investment, to help ensure the policy's success.
A thriving economy in NSW benefits everyone, creates more and better jobs, improves the way we make and do things, and grows the prosperity and wellbeing of the people of NSW.
Key to this is a diversified industry base and protecting our economy from future shocks which the three central missions will help address.
Mission 1: NSW residents have access to safe, secure, affordable, well-designed and sustainable housing
Housing affordability and availability has become one of the state's biggest challenges.
Due to the Liberal-National decade of delay, housing supply has not kept up with demand, contributing to increased pressure on prices and rents.
To improve productivity and sustainability, put downward pressure on construction costs, and increase supply, the Minns Labor Government will focus on increasing the uptake of advanced technologies and innovation in the production and use of sustainable building materials.
Innovative methods, including modular construction and the potential use of automation and robotics, will help the delivery of new homes.
The Minns Labor Government is investing more than $8.5 billion to address the housing challenge through investment in social housing and homelessness services, planning reforms, and housing-enabling infrastructure and rental housing.
Mission 2: NSW is a globally competitive clean energy, sustainable and low carbon economy
NSW has the potential be a leading force in the global net zero economy, including through our abundance of critical minerals, which are essential components of clean energy and low carbon technologies.
Developing sustainable industries that export goods and services to other decarbonising markets is critical to offsetting the decline in carbon-intensive industries.
Renewable fuels are one opportunity for NSW to reduce emissions in hard-to-abate industries such as freight, while contributing to fuel security and growing regional NSW economies.
The progression of a commercial green hydrogen sector would also produce low-emissions products and fuels for domestic trade purposes.
The Minns Labor Government invested $3.5 billion in Climate Change and Energy initiatives in the 2024-25 Budget, including $3.1 billion in NSW's Renewable Energy Zones, getting more clean energy into the grid while creating secure jobs for communities across the state.
Mission 3: NSW is a dynamic and resilient economy supported by local manufacturing
Manufacturing declined nationally over the past two decades.
NSW manufacturers face significant challenges, including high costs and weak supply chains.
In light of these challenges, growing local manufacturing will require NSW to leverage its comparative advantages including its skilled workforce, infrastructure, and abundant resources.
In order to combat these challenges, the Minns Labor Government has set three new Local Manufacturing targets:
Target 1: NSW Gross Value Added for manufacturing achieves real growth on average over the years to 2031.
Target 2: NSW Gross Value Added for manufacturing achieves growth equal to, or greater than Gross State Product on average in the years between 2031 and 2040.
Target 3: Achieve a 50% minimum local content target for future rolling transport stock by 2035.
Advanced manufacturing technologies will also provide new opportunities for NSW to be globally competitive in complex and high-value products while NSW manufacturers can benefit from the global transition to net zero.
Innovative new technologies in big data, artificial intelligence, quantum, virtual reality, and robotics are dramatically changing manufacturing processes, from design and prototyping to the actual fabrication of products.
The Minns Labor Government has already committed over $600 million to drive investment in local manufacturing.
This investment has helped manufacturing in NSW grow two consecutive years for the first time in two decades.
Link to the NSW Industry Policy available here: https://www.investment.nsw.gov.au/why-nsw/resources/nsw-industry-policy/
Quotes attributable to the Minister for Industry and Trade Anoulack Chanthivong:
"The NSW Industry Policy details the Minns Labor Government's vision and plans for the economic future of NSW and provides the strategic direction across all Government agencies and programs to drive industry investment.
"This is a clear and stable policy approach to help guide private sector investment needed to increase jobs and productivity in NSW.
"Addressing the housing crisis, supporting NSW through the transition to Net Zero, and growing our local manufacturing industry are among our key priorities.
"NSW manufacturing grew in only two years in the 2010s under the previous Liberal-National Government.
"With three new Local Manufacturing targets, we have demonstrated a real commitment to supporting local manufacturing to promote a dynamic, sustainable, and diversified economy.
"We want to see a manufacturing industry that is innovative, productive, and boosts Australia's sovereign capability.
"Our ambition is clear: to build a better NSW and to make our state the most attractive place for people to live and work, and for local businesses to thrive."
Quotes attributable to State Secretary of the AMWU Brad Pidgeon:
"This policy, particularly the three new Local Manufacturing targets, provides a huge boost for manufacturing workers right across the state.
"We need an ambitious vision for and support for our local manufacturing industry and this policy provides just that."
Quotes attributable to NSW Head of Australian Industry Group Helen Waldron:
"The NSW Industry Policy provides the certainty and clarity that NSW businesses need to thrive in our rapidly changing economy.
"Having a clear, overarching strategic vision from the NSW Government provides NSW industry with the tools it needs to attract and grow investment supported by Government policy settings."
