The Lean Manufacturing Pilot Program will provide small-to-medium-sized manufacturers across regional NSW with funding to undertake audits by professional consultants that will identify ways to re-organise their manufacturing operations.
Lean manufacturing is an internationally recognised business management process that revolves around the principles of continuous improvement, waste elimination, and a customer-centric approach.
It focuses on creating products more efficiently by eliminating unnecessary steps, saving time and using fewer materials in the production process. This approach helps businesses produce goods with fewer resources, without compromising on quality.
More efficient processes mean production lines manufacture fewer products with defects, which in turn reduces operating costs related to providing returns and waste disposal.
The audits, undertaken as part of the program, will offer tailored recommendations to help businesses identify inefficiencies, streamline operations, reduce waste and increase productivity, while also highlighting training opportunities for staff.
North Wyong-based Donaldson Filtration Solutions, the Australasian hub of a leading global manufacturer, has successfully used lean manufacturing principles.
Manufacturing is a key driver of the NSW economy, contributing nearly 30 per cent of Australia’s total manufacturing output.
In regional NSW, the sector generates $32 billion in sales and employs 84,000 workers, reinforcing the need for continued support to strengthen and future-proof the industry.
Manufacturing employs 10,600 people in the Central Coast and contributed $1.4 billion to the Coast’s Gross Regional Product in 2023-24.
Industry research by Binder Dijker Otte (BDO) suggests that adopting lean manufacturing can boost small-to-medium-sized businesses’ profit margins by up to three times, depending on their size and turnover.
The NSW Department of Primary Industries and Regional Development designed the pilot program following in-depth industry consultation, which highlighted the need for more support in adopting lean manufacturing principles to ensure regional manufacturers remain globally competitive.
The Lean Manufacturing Pilot Program is part of the NSW Government’s ongoing commitment to supporting manufacturing industries across the state as they navigate rising costs and market challenges.
Expressions of interest for the audits are now open to eligible manufacturers and will close at 4pm on Monday 31 March 2025, with funding allocated on a first-come, first-served basis.
For more information about the program, including guidelines and Expression of Interest details, go to the Lean Manufacturing Pilot Program webpage or email economic.programs@dpird.nsw.gov.au.
Minister for the Hunter and the Member for Swansea Yasmin Catley said:
“Manufacturing has long been a part of our identity with local businesses employing thousands of workers, providing good jobs and a good future for our region.
“The Lean Manufacturing Pilot Program will help support local manufacturers to improve their operations and continue to go from strength to strength.
“Only a Minns Labor Government is investing in our region’s local workers and industries so that our local economy continues to thrive.”
Minister for Regional NSW and Western NSW Tara Moriarty said:
“The Lean Manufacturing Pilot Program is an important part of our ongoing support for regional manufacturers across the state, helping them overcome the challenges posed by rising supply chain, energy and labour costs.”
Minister for the Central Coast and the Member for Wyong David Harris said:
“In these days of rising costs and a volatile global trading environment, regional manufacturers need all the help they can get, and the Lean Manufacturing Pilot Program is a key part of the NSW Government’s ongoing support for makers of products.
“By supporting Central Coast businesses to improve their operations, we’re strengthening the whole economy of our region which creates more jobs for people close to where they live.
“I strongly encourage eligible businesses on the Coast to get their applications in.”
Member for Gosford Liesl Tesch said:
“We have so many fantastic, innovative manufacturers across the Central Coast region and the Minns Labor Government is committed to supporting their growth and competitiveness in the local, national and global market.
“When our Central Coast manufacturing industry thrives, the impact is felt across our entire local community. I strongly encourage our local manufacturers to make the most of this wonderful opportunity to boost their operations.”
Member for The Entrance David Mehan said:
“Labor wants to support local manufacturing, and I encourage businesses on the Central Coast to apply.”
