Facing the manufacturing workforce challenges of the future

Manufacturers from many different sectors, including food and beverage, are facing higher input costs, ongoing supply chain uncertainty, persistent skills shortages and a tight labour market.

The 2026 National Manufacturing Workforce Plan, released on 17 September 2026 by the Manufacturing Industry Skills Alliance (Manufacturing Alliance), sets out the challenges and solutions for jobs and skills across the Australian manufacturing industry.

According to the report, there are 12 occupations critical to manufacturing that remain on the national occupation shortage list, with the sector’s demand for skilled workers projected to grow by an additional 91,300 over the next decade to 2035.

The workforce challenge is not just about workforce size. It is also about whether the manufacturing workforce has the right capabilities, whether employers can attract and retain workers, whether training pathways can respond quickly enough, and whether knowledge can be transferred before experienced workers leave the industry.

Operation in a more uncertain and cost-constrained environment is also affecting the capacity and willingness of employers to recruit, train and retain apprentices. And while manufacturing depends on apprenticeships, recent data shows fewer people are taking up these opportunities.

Across the manufacturing sectors covered by this report, the workforce is projected to grow by 12.3% by 2035 to 831,100 workers, with most of the growth expected in trade and technical roles. The report shows significant growth is projected for higher-skilled occupations such as engineering professionals. The projected increase of 91,300 workers represents only workforce growth and does not capture the additional demand created by retirements and workforce attrition over the next decade.

The report found that the manufacturing workforce is older than the national average, with a median age of 42 compared with 38, so future retirements will also add to the task over the same period.

Manufacturing Alliance CEO Sharon Robertson said the report set out the scale of the task facing the industry.

“Manufacturing is growing, and the roles it needs most are the ones that take the longest to train. Twelve occupations critical to this industry are in national shortage, and those shortages have proven persistent," Robertson said.

The report examines a range of solutions to the enduring manufacturing workforce challenges: improving attraction and apprenticeship pathways, supporting an aging workforce, increasing workforce diversity, and ensuring national training responds to new and emerging skills and technology.

This is the first report in a series under a national-to-sub-sector framework. Four sectoral plans will follow across 2026 and 2027, covering Aerospace; General Manufacturing and Engineering; Food and Beverage, Pharmaceutical and Laboratory; and Process and Light Manufacturing.

Robertson said the Plan was the first step in a longer program of work.

“Food security, defence and the energy transition. Every one of these national priorities relies on a skilled manufacturing workforce. That is why this Plan puts the evidence in one place for industry, training providers and government, and why the four sectoral plans that follow will take it to the level where workforce decisions actually get made.”

For more information, visit manufacturingalliance.org.au/2026-manufacturing-workforce-plan.

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