Context The winds of change are driving trends in automation, artificial intelligence, 3D printing, new energy (batteries, renewables and hydrogen fuel cells), circular economies, Net Zero targets, global demand for protein and the growing environmental consciousness among consumers. Many of these trends are enabling Australia to revitalise its manufacturing sector as proximity to resources or industrial synergies create competitive advantages. For example, remotely piloted vehicles used in the mining sector are setting the pace globally. There is an opportunity to support the development and export drone technologies that address similar requirements. Similarly, Western Australia’s abundant and comprehensive reserves of battery minerals, abundant renewable energy and automation innovations position the State to move up the global battery value chain, capturing additional returns in the process and reducing sovereign risk. These advantages, in turn, support the development of regional green steel production, value added food products and other value- added mineral products. 3D printing is shifting the competitive advantage from low-cost, high population centres closer to end user markets. This benefits WA, with large reserves of many of the resources required as inputs to various 3D printing processes. Overall, global supply chains benefit from diversity and challenge the economics of outsourcing manufacturing. At the same time, waste exports have been banned in favour of local recycling and creating value from waste materials. WA and Commonwealth policies align and support investment in regional recycling facilities where costs are lowest. It is all part of a transformative era in which Net Zero is a driver, where the shift is towards the source of energy, resources and end markets, and where a growing consciousness of environment, unfair trade, labour and human rights practices is creating competitive advantages for economies with sound and improving sustainability credentials. International accreditation of sustainably produced goods will be vital in unlocking European Union markets. WA recently halted all native forest logging, building on old growth timber logging bans more than 20 years ago. The new direction is a greater focus on plantation timber while the future success of the WA timber products sector is now tied to restoring the forests to pre-settlement forms and ‘cool burn’ Aboriginal forest management practices. Those forests were characterised by lower densities and larger trees that thrived with less competition. Restoration will be required through ecological thinning and rapidly growing the hardwood plantation estate while capitalising on the resulting carbon offsets market as the world moves aggressively to a Net Zero economy. WA is uniquely placed to incorporate astro and geotourism activities and destinations into existing regional tourism packages. Activities that highlight unique aspects of Australian culture, geology and dark sky areas are increasingly sought out by hobby astronomers and by tourists as part of general packages. Traditional Aboriginal experiences, WA’s abundance and diversity of minesites (operational and historical), ancient geological features, astro and geotourism events, scientific research and educational trips all offer niche market opportunities. Investment in the growth of these markets will contribute to the overall value of tourism in regional economies. The financial and carbon cost of transporting goods long distances will also contribute to the reorganisation of global value chains in favour of resource states like WA. When automation and environmental performance advantage economies with strong regulatory regimes and low sovereign risk, the cost of transport becomes increasingly important, thus favouring value adding materials at source. These factors position Australia, and particularly WA, to not only expand primary goods production, but all aspects of value adding as a contribution to a more dynamic and sustainable global economy. The change marks a significant departure from decades past and the cost of labour as the dominant expense.
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