Twelve occupations critical to manufacturing remain on the national occupation shortage list, with demand for skilled workers projected to grow by an additional 91,300 over the next decade to 2035, according to the 2026 National Manufacturing Workforce Plan released by the Manufacturing Industry Skills Alliance.
The Plan attributes persistent shortages in trade and technician roles to lengthy training requirements, typically three to four years. It says shortages of fitters, welders and machinists have flow-on effects beyond manufacturing operations, with implications for defence capability, the energy transition, and the expansion of Australia’s food and medicines manufacturing sectors.
Across the manufacturing sectors covered, the workforce is projected to grow 12.3 per cent by 2035 to 831,100 workers, with most growth expected in trade and technical roles. Higher-skilled roles such as engineering professionals are also forecast to increase. The projected increase of 91,300 workers reflects growth only and does not include additional demand created by retirements and workforce attrition over the same period.
The Plan highlights apprenticeships as central to manufacturing workforce supply, but notes recent declines in commencements. For the 12 months to 31 December 2025, commencements in metal trade apprenticeships were down by more than 4 per cent compared with the previous year.
It also reports the manufacturing workforce is older than the national average, with a median age of 42 compared with 38 nationally, indicating retirements are likely to add further pressure over the next decade.
Manufacturing Industry Skills Alliance CEO Sharon Robertson said the Plan outlined the scale of the workforce challenge.
“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,” Ms Robertson said.
The Plan canvasses responses including improving attraction and apprenticeship pathways, supporting an ageing workforce, increasing workforce diversity, and ensuring training systems respond to emerging skills and technology.
It is the first in a national-to-sub-sector framework, with four additional sectoral plans due across 2026 and 2027 covering Aerospace; General Manufacturing and Engineering; Food and Beverage, Pharmaceutical and Laboratory; and Process and Light Manufacturing.
“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,” Ms Robertson said.
Data sources cited include employment projections produced by Victoria University for Jobs and Skills Australia (May 2025 to May 2035), NCVER Apprentices and Trainees (December quarter 2025), the Jobs and Skills Australia Occupation Shortage List 2025, and ABS Labour Force, Australia, Detailed (February 2026).
