The FCJ industry and the Australian Government’s industry policy agenda

1. The FCJ industry and the Australian Government’s industry policy agenda FCJ Industry Leaders Forum, Sydney 9 April 2014

2. Presentation outline • The Australian FCJ industry • Overview of the sector • Significance to the national economy • The Australian Government’s industry policy agenda

3. What is the FCJ Industry? • The ‘furniture’ sector: • domestic and commercial free standing and built-in furniture • The ‘other cabinet making and joinery’ sector: • wooden doors • roof trusses • wall and window frames • other wooden builders’ joinery and carpentry • parquetry strips • other wooden industrial products and on-site installation

4. What is the FCJ Industry? (cont.) • The ‘door and window’ sector: • architectural aluminium products such as doors, railings, partitions, window frames, aluminium framed windows, doors and shower screens • timber products such as framed windows and doors • uPVC framed windows and doors

5. Industry structure • Fragmented sector comprising a large number of small, family-owned businesses • Less than 1% cent of businesses employ more than 200 employees, with the majority employing less than 20 • A majority of businesses are based in the Eastern states, with around 58% located in the traditional manufacturing states of NSW and Victoria

6. Economic significance of the industry • The FCJ industry is one of the largest manufacturing sectors in the country • Employs around 130,000 people across Australia • Total industry revenue: $25 billion • Industry value added: $7.8 billion • The gross value of the industry is estimated at around $33 billion

7. The Government’s industry policy agenda • The Minister for Industry – the Hon Ian Macfarlane MP • Parliamentary Secretary – the Hon Bob Baldwin MP • The Department of Industry: • The department consolidates the Australian Government’s efforts to drive economic growth, productivity and competitiveness by bringing together industry, energy, resources, science and skills. • Industry Division • AusIndustry • Enterprise Connect • The Anti-Dumping Commission

8. The Government’s industry policy agenda • The Government maintains that the best way to foster a viable and competitive manufacturing industry is to promote a positive business environment. • The Government is progressing a range of measures to ease the pressures and costs on businesses so they can be competitive. These measures include: • abolishing the carbon tax • lowering the company tax rate • cutting red tape costs for businesses by $1 billion a year

9. The Government’s industry policy agenda • The National Industry Investment and Competiveness Agenda: • In December 2013, the Prime Minister and Minister Macfarlane announced the development of an Industry and Competiveness Agenda • This Agenda will focus on measures to boost competitiveness, lower the cost of doing business, encourage innovation and boost investment • The Agenda taskforce will make recommendations to Government mid-year.

10. META • A collaborative organisation made up of researchers and manufacturers that aims to: • Grow Australian manufacturing locally and globally • Develop exceptional customer satisfaction and build a continuous volume base of products • Use collaboration and innovation to gain competitive advantages on a global stage • META collaboration hubs

11. DEPARTMENT OF INDUSTRY Industry House 10 Binara Street Canberra City, ACT 2601, Australia Telephone +02 6213 6000