Deloitte delivered a series of reports to the federal government on supply chain resilience, as money continues to flow into manufacturing and building Australia’s sovereign capacity.
As part of its $ 1.5 billion modern manufacturing flagship strategy, the federal government has set aside $ 107.2 million for the Supply Chain Resilience Initiative (SCRI), which will seek to provide information on supply chains, identify gaps and take action to address them through grants.
It comes as the COVID-19 pandemic has led to increased focus on Australia’s sovereign manufacturing capacity and significant gaps in its supply chain.
Deloitte was awarded a five-week contract in early March valued at $ 242,000. The contract was not made public until this week after the work was completed. Deloitte received over $ 48,000 per week to complete the reports.
A spokesperson for the Department of Industry said the reports focused on the resilience of Australia’s supply chain around common medicine, personal protective equipment and agricultural production chemicals.
“Deloitte helped the department perform a robust and comprehensive analysis of supply chain vulnerabilities for the critical product categories identified,” the spokesperson told InnovationAus.
“The analysis will inform the assessment of possible procurement options to address the identified vulnerabilities.”
Starting in July, companies will be able to apply for grants under the Supply Chain Resilience Initiative to help “build or scale a capacity that addresses an identified vulnerability in the supply chain.” procurement for a critical product or input ”.
Through this initiative, the government aims to gain an understanding of the critical resilience of Australia’s supply chain, under normal circumstances and in possible crises, and to identify the products needed in times of crisis. and current manufacturing capabilities in these areas.
“We will work with industry to identify sourcing options to address vulnerabilities in domestic and international supply chains for identified critical products,” the government said.
The Department conducted a consultation process on the initiative late last year.
Supply chain resilience and sovereign capacity are at the heart of the government’s broader modern manufacturing strategy.
The $ 1.3 billion Modern Manufacturing Initiative fund is now open for the six benefit areas it will focus on: resource technology and critical mineral processing, food and beverage, medical products, recycling and clean energy, defense and space.
Direct grants for public-private collaboration and marketing are available under the initiative.
Last month, the federal opposition unveiled its own manufacturing policy with a $ 15 billion fund to commercialize innovation and bring manufacturing back to earth. Opposition Leader Anthony Albanese said the fund would rebuild Australia’s sovereign capacity, create jobs and diversify the economy.
State governments are also investing heavily in manufacturing and supply chain resilience.
Last week, the Victorian government opened its own $ 60 million manufacturing fund, aimed at strengthening the state’s sovereign capacity. The first component of the fund is the $ 20 million Business Competitiveness Program, which will provide grants to local manufacturers looking to support and expand their businesses through new technologies and processes.
You know more? Contact James Riley by email or Signal.