Why buying Australian-made and Australian-owned is important
How many of your toys or clothes were made in Australia? Our country is falling behind when it comes to producing a range of goods and our economy is at risk. But there is a way we can help
READING LEVEL: GREEN
Australia has long been known as the “lucky country” but it seems we are running out of luck. For decades, we’ve relied on digging up raw materials and shipping them overseas but now it looks like that isn’t enough.
On the Harvard Economic Complexity Index* (ECI), which measures how smart and diverse an economy is, Australia is ranked 105th, putting us behind one of the world’s most sparsely populated countries, Botswana, and just ahead of the West African country Cote d’Ivoire.
While we might be rich in resources*, we’re poor in complexity, which means we aren’t that great at producing a wide variety of products.
Australia has plenty of great ideas, but when it comes to turning them into actual products you can buy, we don’t have the greatest success.
Why is this a problem? Because it has left us reliant on other countries for all sorts of products while putting Australian jobs and industries at risk.
But luckily, us ordinary Aussies can help. The solution doesn’t require a Senate inquiry or a new government fund. It starts with us – the everyday Aussie and the decisions we make, including what we buy, where we spend and who we support.
Here are three ways we can Back Australia and help to boost our economy:
LOOK FOR THE GREEN AND GOLD KANGAROO
Buying products that are Australian owned and Australian made is the simplest way to help our economy. Not only does it benefit Australian businesses, it helps to keep more Aussies employed in jobs while ensuring a greater diversity of jobs for Australians to choose from.
But with so many flags, shields, and claims, it’s easy to feel confused when trying to figure out if a product is actually Australian.
You can cut through the confusion by looking for Australia’s only registered country-of-origin certification trademark, the green and gold Kangaroo.
Australian Made CEO Ben Lazzaro said the logo is the most reliable measure for consumers.
“It’s a quick, clear and trustworthy way to know that a product has been made or grown right here in Australia, to some of the highest manufacturing and safety standards in the world,” Mr Lazzaro said.
He said the logo is backed by a third-party accreditation* system and compliance auditing* program, meaning it can only appear on products that meet strict criteria under Australian Consumer Law and the Australian Made Logo Code of Practice.
Mr Lazzaro said by choosing the yellow and green logo, Australians are giving back to their country.
“Aussie products are made to some of the highest standards in the world. They are trusted and known for their safety and quality,” he said.
“When consumers choose locally made goods, they’re helping to create jobs and stimulate economic activity to support the broader community.”
Be wary of claims like “Australian owned” or “designed in Australia” as that doesn’t necessarily mean a product has been made here. It could have still been made in a factory overseas, which means Australian workers weren’t employed in its creation.
So next time you want to buy a cute plushy of a native Australian animal from the zoo’s gift shop, look for one with a green and gold kangaroo tag attached – otherwise you might find that platypus came all the way from China.
Tips:
* Ask where it’s from: Get your parents to only buy Australian food when they do the grocery shopping.
* Check the packaging: Show them how to check bar charts on food labels to see what percentage of ingredients are Australian. Sometimes food has been packaged in Australia but the raw ingredients come from overseas.
* Investigate small brands: Some small manufacturers may not display the logo because it costs money to get certification. If the label is unclear, a quick search for the company’s ‘About Us’ page can confirm if they proudly employ Australians in a local manufacturing facility or if its product is made in Australia.
SUPPORT LOCAL BUSINESSES
The Australian economy is built on the backs of small and medium sized businesses with less than 200 workers.
According to the Australian Bureau of Statistics (ABS), smaller businesses like these account for 97 per cent of all businesses and employ about 70 per cent of the national workforce.
Business NSW CEO Daniel Hunter said small businesses are the “lifeblood of our communities”.
“They’re the local cafe that knows your order, the tradie who sponsors the footy club, and the family-run shop that’s been on the high street for decades,” Mr Hunter said.
But, Mr Hunter warns, many are struggling because of rising costs and competition from larger businesses.
“Backing Australia means giving local businesses a fair go,” Mr Hunter said.
When you spend money with a local business, the “boomerang dollar effect” kicks in. In other words, Aussie money stays in the community longer, flowing to local suppliers, sponsorships and wages.
Tips:
* Buy local: Choose independent cafes and shops over large chains and fast food joints.
* Leave a positive Google review: “A good review can be the difference between a quiet week and a busy one,” Business NSW CEO Daniel Hunter said.
* Shop local online: Shop directly from small business websites and marketplaces like etsy rather than global marketplaces. If in doubt, check the address and avoid overseas sites.
STRENGTHEN AUSSIE SKILLS
Backing Australia isn’t just about buying local, it’s about building the skills and systems that keep us independent.
Over the past two decades, Australia’s domestic* manufacturing and logistics* training pipeline* has shrunk.
According to Business NSW, one in four regional businesses can’t find skilled staff, particularly in engineering, advanced trades and logistics.
The Advanced Manufacturing Growth Centre’s (AMGC) Managing Director Jens Goennemann warns that we’ve lost much of our ability to provide local suppliers that make parts, maintain machines or move goods domestically.
“Resilience* is about having the capability to make, repair or reuse things when times are good and more importantly when bad,” Dr Goennemann said.
“Every component, be it a widget* or entire product we can make locally reduces supply chain* risks, creates quality jobs and allows us to weather any crisis.”
Tips:
* Hire local tradies: Get your parents to choose Australian-based services for manufacturing, maintenance, or energy installation.
* Support apprenticeships: Many small businesses run training programs, so why not choose businesses that invest in skills-building? Maybe they’ll even consider you for an apprenticeship when you are old enough.
* Buy from companies with local supply: Get your parents to look for ‘Made and Supplied in Australia’ or businesses sourcing domestic materials.
This article is part of the Back Australia series, which was supported by Australian Made Campaign, Harvey Norman, Westpac, Bunnings, Coles, TechnologyOne, REA Group, Cadbury, R.M.Williams, Qantas, Vodafone and BHP.
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GLOSSARY
- Economic Complexity Index: (ECI) a measure of a country’s productive knowledge, which can be improved when countries increase the number and complexity of the products they manufacture and export to other countries
- resources: such as rare earths, precious metals and minerals
- third-party accreditation: when a separate company gives the rating
- compliance auditing: when a company comes in and makes sure that you have done things correctly
- domestic: within Australia
- logistics: transporting goods
- pipeline: journey and process from start to finish
- resilience: the ability to bounce back after a difficult period of business
- widget: a small gadget or mechanical device
- supply chain: all the different steps involved in the production and distribution of a product
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QUICK QUIZ
1. Why is it important to support Australian small businesses?
2. How can you tell if something is Australian made?
3. What are two ways you can help to “back Australia”?
4. Why are apprenticeships important for Australia’s economy?
5. How many regional businesses in NSW are having trouble finding skilled staff?
LISTEN TO THIS STORY
CLASSROOM ACTIVITIES
1. How to get Australian Made accreditation
Research to find out what businesses need to do to obtain official Australian Made accreditation. Write a short set of instructions that sets out the process, how much it might cost and what criteria the business must meet.
Then think about how the process for accreditation could be changed so that barriers for smaller manufacturers could be overcome.
Time: allow 30 minutes to complete this activity
Curriculum Links: English; HASS/Economics and Business
2. Extension
At home or in a shop/supermarket, check the labelling of at least 10 items. Find out where items were made and consider whether the information was clear and easy to find and understand.
Write a short summary explaining some things that you noticed.
Time: allow 20 minutes to complete this activity
Curriculum Links: English; HASS/Economics and Business
VCOP ACTIVITY
To sum it up
After reading the article, use your comprehension skills to summarise in a maximum of three sentences what the article is about.
Think about:
- What is the main topic or idea?
- What is an important or interesting fact?
Who was involved (people or places)?
Use your VCOP skills to re-read your summary to make sure it is clear, specific and well punctuated.