There's no doubt that, on the world stage, Australia's creative fashion brilliance shines brightly but, so little gets manufactured here. Short-run digital production is steadily changing the equation but there's still a long way to go. Industry collaborators are seeking a research partner to assess feasibility of a technology innovation hub.
It is appropriate that the initiative has been announced at the start of 'Made in Australia' week
The Australian Fashion Council (AFC) and Epson Australia have launched an initiative to evaluate the potential for an AI and digitally powered smart factory to advance Australia's clothing manufacturing capabilities. The organisations are seeking a qualified research partner to conduct a six-month feasibility study that will create a detailed blueprint for a pilot facility combining digital design and print, automation, and AI technologies to revolutionise local production.
The announcement comes just one week after the AFC unveiled its commitment to developing Australia's first-ever National Manufacturing Strategy for the fashion and textile industry. This smart factory feasibility study will evaluate how cutting-edge technology can form a key pillar in rebuilding sovereign manufacturing capabilities.
What is a 'smart factory'?
A clothing smart factory is an automated production facility that enables on-demand, customisable garment manufacturing with minimal waste and fast turnaround times. By bringing together digital design and print and advanced manufacturing technologies with AI-powered systems and analytics, smart factories enable quick, flexible production runs that respond rapidly to market trends without the high minimum order quantities that can result in overproduction.
Jaana Quaintance-James, CEO of the Australian Fashion Council, says: "This smart factory initiative 
AFC's Jaana Quaintance-Jamesaddresses multiple challenges facing Australian fashion manufacturing, from supply chain disruptions to skills shortages. Our sector is at a critical tipping point. The feasibility study will validate whether a smart factory pilot program can be commercially viable while delivering broader benefits as part of an integrated advanced manufacturing ecosystem."
Research commissioned by the AFC has estimated that for every $1 million invested in returning production to Australia, approximately $1.2 million in economic returns could be generated through job creation, technology adoption, strengthened local supply chains, and reduced import dependencies.
Epson's Craig HeckenbergCraig Heckenberg, Managing Director of Epson Australia, says: "Epson is committed to supporting innovation in Australian manufacturing as we believe Epson’s digital textile printing technology can help build a more sustainable world and improve lives. Our partnership with the AFC and this blueprint and initiative will help local brands, big and small, have access to smart manufacturing capabilities that match their scale and ambition.
"For smaller brands, it means producing high quality garments locally, on demand. For larger companies it offers a blueprint to implement smart factory practices within their operations. As a result, we see a future where Australian-made sustainable fashion will set the global standard, leading not just in design, but also in ethical, high-tech manufacturing.”
Why a Feasibility Study?
Before committing significant resources to establish a smart factory, the AFC and Epson recognise the 
importance of thoroughly validating the concept and learning from other local and international examples. The comprehensive six-month study will assess market viability, technical requirements, operational models, financial projections, and social and environmental considerations to create a detailed implementation roadmap.
"This isn't just a research exercise, it's the foundation for action," adds Quaintance-James. "Following completion of the study toward the end of 2025, we'll develop a detailed implementation plan to secure investment partnerships, finalise specifications for an initial pilot, develop training programs with educational institutions, and create a governance framework to maximise benefits to the Australian fashion industry."
Epson's Heckenberg notes: "The smart factory concept represents a transformative shift toward 'rapid agile' on-demand manufacturing,” "Rather than speculative production, this approach enables creating products in response to actual consumer demand, simultaneously addressing profitability challenges and environmental concerns."
The initiative aims to retain sovereign manufacturing capability, rebuild local supply chains, drive digital innovation, and upskill the workforce through educational partnerships.
Call for Research Partners
The AFC and Epson Australia are seeking research partners with experience in technology and innovation, fashion and textile industry expertise, stakeholder engagement, comprehensive research and analysis skills, and financial analysis capabilities.
Research partners may be Australian-based or international organisations with the capacity to conduct a thorough feasibility study that delivers actionable recommendations.
Interested parties should submit their expressions of interest by Sunday, 15th June 2025.
For more information, please contact: Sam Delgos, Industry Relations Manager, AFC, sdelgos@ausfashioncouncil.com, or Mobile: 0405 566 313
The complete program page can be found here.
