Australian Manufacturing State of Play 2025: New report shows network design is distinguishing top performers

With Australian B2B manufacturers facing unprecedented challenges from rising energy costs, complex industrial relations environments, and stringent ESG requirements, leading supply chain consultancy Prological has released a comprehensive report examining how strategic network design has become essential for competitive advantage.

The white paper reveals how manufacturers thriving in today's challenging environment treat supply chain network design as a strategic imperative, not an operational afterthought.

Wholesale gas prices have tripled over the past decade, with some manufacturers seeing monthly electricity costs more than double within twelve months, forcing a fundamental rethink of operational strategies. Additionally, environmental requirements are making manufacturing more cost prohibitive in Australia, forcing companies to close local operations and import from overseas producers with larger carbon footprints. These combined pressures are pushing manufacturers toward high-value products with intellectual property, where Australia can maintain a strong competitive position.

The report explores key areas including:

·        Strategic network design methodology for B2B manufacturers

·        Building data-led supply chains with five core information pillars

·        Implementation roadmaps and risk management strategies

·        Leveraging Australia's untapped export advantages

The paper includes a detailed case study of MMKembla, Australia's only copper tube manufacturer, which has worked with Prological for 17 years to continuously optimise their national network, demonstrating how regular network design reviews create measurable ROI through cost savings and service improvements.

Peter Jones, Managing Director at Prological:

"Australian manufacturers are caught between rising costs and shrinking margins, but those who treat their supply chains as competitive weapons rather than cost centres are not just surviving – they're thriving. This report shows that manufacturers approaching lease renewals or expansion decisions have a strategic opportunity to fundamentally transform their operations. The question isn't whether to evolve – it's whether to lead the transformation or be left behind by competitors who act first."

“Despite the challenges, Australia offers surprising advantages for manufacturers thinking globally – it costs less to export from Australia to many EU destinations than it does for many EU origin-to-destination pairings. These export advantages remain largely untapped, but can be unlocked with data-led, strategic network design. Without accurate, complete datasets, manufacturers are making expensive guesses rather than evidence-based decisions.”

To download the white paper, click here.