Australian Manufacturing Jobs in 2026: Cautious Expansion, Smart Factories and Where the Skills Are

Feb 17, 2026

Laura Privitelli

As a recruiter working with people within Australian manufacturing jobs, I’m seeing what I’d call a “cautious expansion”. After a tough 2025 marked by cost pressure and uncertainty, the Manufacturing industry in Australia is now shifting toward smart manufacturing, automation, robotics, AI and 3D printing to lift productivity and protect margins. The latest data from the S&P Global Australia Manufacturing PMI shows growth continuing into early 2026, with new orders, exports and headcount all rising. This tells me that some confidence is returning, measured and focused on efficiency.

Manufacturers are chasing volume for investing in high-tech, sustainable production and tightening their operations to remain profitable.

Smart Manufacturing and Sustainable Production Are Driving Hiring

The biggest change I’ve seen is the progression from traditional high volume production to digitally enabled, sustainable manufacturing.

Businesses are implementing and testing robotics, automation and data driven decision making into their operations. Defence manufacturing is expanding off the back of national procurement programs. Medical technology and pharmaceuticals grow as local capability becomes a priority. Renewable energy, battery supply chains and green metals are creating demands for technical capability that simply didn’t exist at this scale a decade ago. Food and beverage remain steady, but even there, automation is becoming standard.

What Do You Mean by Smart Factories?

When I talk about smart factories, I’m referring to manufacturing environments that use connected technology to make better decisions in real time. This includes robotics working alongside trades, machines fitted with IoT sensors that monitor performance, production lines integrated with ERP systems, and data dashboards that track output, downtime and quality instantly. Instead of reacting after something goes wrong, smart factories use data, automation and predictive maintenance to prevent issues before they impact productivity. It’s not about removing people from the process. It’s about equipping skilled operators, technicians and engineers with better tools so they can work safer, faster and more efficiently in advanced environments.

Manufacturing Skills Shortage 2026: Specialised Talent in High Demand

From my recruitment perspective, the manufacturing skills shortage in 2026 is less about headcount and more about capabilities.

The fastest growth in headcounts in over three years, as reported by S&P Global, confirms businesses are hiring again. But they are selective. Most fabricators plan to maintain or increase their workforce this year, but the roles they struggle to fill are specialised.

Hard to fill roles include:

Robotic engineers
Data analysts within manufacturing environments
CNC machinists
Specialised maintenance technicians

At the same time, there is ongoing demand for:

Welders
Steel fabricators
Automation technicians

These are not entry level positions. Employers want certified, proven operators who can step into advanced environments and add value quickly.

The Rise of White Collar Manufacturing Roles

One of the major changes I’m seeing is the growth of white collar manufacturing jobs. Smart factories need people who understand data, digital systems and supply chain strategy. We’re seeing more demand for:

Digital operations managers
Supply chain and logistics specialists
Sustainability and compliance professionals
Production planners with strong ERP capability

Familiarity with AI, IoT-connected equipment and sustainability reporting frameworks sets candidates apart.

Automation replacing the workforce? It’s happening however, not as much as you hear. In most cases, it is supporting workers by removing dangerous or repetitive tasks and improving output yes, but productivity gains are allowing manufacturers to compete globally, which in turn protects and creates jobs locally.

Cost Pressures and Operational Focus Are Reshaping Teams

Despite growth, this sector is still managing it’s challenges. High input costs, particularly gas and energy, remain a concern. Tax pressures also continue to weigh on businesses. That’s why so many manufacturers are focusing on operational process improvement. Around a third are prioritising internal productivity.

For hiring, this means every role must justify itself. Employers want people who improve systems, reduce waste, optimise output and strengthen compliance. I’m seeing more detailed position briefs and a stronger emphasis on measurable impact.

Regional Growth: Where the Manufacturing Jobs Are

While manufacturing is active nationwide, certain regions are showing stronger momentum.

Queensland recorded growth in job advertisements during 2025, and that trend is carrying into 2026. Western Australia is also benefiting from state initiatives and industrial activity. Defence related projects and renewable energy investments are influencing hiring patterns across states.

For job seekers, location flexibility can open doors. Growth corridors tied to infrastructure, energy and defence projects are creating new opportunities beyond traditional metro hubs.

The Quiet Hiring Boom: Admin, Stores & Logistics Roles Businesses Can’t Run Without

Apprenticeships, Training and the Future Workforce

To address ongoing shortages, manufacturers are investing more seriously in apprenticeships and partnerships with TAFEs and universities. Businesses recognise that waiting for “ready-made” talent is not a long-term solution.

From my perspective, candidates who combine formal certification with practical experience are best placed. Trade qualifications, advanced tickets, and continuous upskilling in digital systems all matter.

Green skills are also developing as a differentiator. Understanding sustainability metrics, emissions reduction processes or energy-efficient production methods can make a candidate more attractive.

Employee Apprenticeship

What This Means for Job Seekers in 2026

If you’re considering a move within manufacturing, here’s what I’d focus on:

Prioritise certifications and specialised training.
Build exposure to automation, robotics or CNC technology.
Develop digital literacy around ERP systems and data reporting.
Stay open to growth regions and emerging sub-sectors.

Australian manufacturing in 2026 is not in survival mode. It’s rebuilding with purpose. It’s selective, technology driven and sustainable.

From where I sit, the opportunity is real and market rewards capability, adaptability and formal qualifications. For skilled tradespeople, technicians and digitally minded professionals, this next phase of growth could be one of the strongest career windows we’ve seen in years.

Manufacturing jobs and recruitment