Abstract
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In August 2011 the announcement by Bluescope Steel of mass layoffs at
its Port Kembla steelworks, in the Illawarra region, sparked renewed
public debate and media commentary on the future of manufacturing in
Australia. The debate has since spread to cars, aluminium smelting –
even Mortein fly spray – and has quickly coalesced around the
unprecedented high Australian dollar, its impacts on exports, and the
prospects of the production of goods shifting overseas. As Australian
mining magnates such as Clive Palmer, Gina Rinehart and Twiggy
Forrest attempt to remould Australia around their ‘quarry vision’ (Pearse,
2009) of extractive minerals exports, a high value Australian dollar puts
at risk any industries where import substitution is possible: tourism,
education, retail (doubly threatened by the rise of e-commerce), and the
manufacturing sector.
In this article we seek to provide a fresh perspective to the debate on
Australian manufacturing by focusing instead on the internal dynamics
of industries and regions – where a political economic analysis reveals
important insights.
Our case study is the Australian surfboard-making industry. By focusing
on internal as well as external dynamics, we illuminate the problems with
orthodox approaches to comparative advantage, and suggest critical
factors beyond the high dollar that need to be addressed if this iconic
form of manufacturing is to remain viable in Australia.