Diversify WA: Supply Chain Development Plan 2021-22

The purpose of the Plan is to promote the development of supply chains in the state’s priority export markets through:

• growth in the capability, competitiveness and participation of WA businesses in targeted supply chain industries » closer collaboration between industry and the WA Government to encourage the use of WA goods and services in supply chains  
• a regulatory environment that is more conducive to investment in local businesses that service supply chains.

The reconfiguration of global supply chains is an opportunity for WA to further diversify its economy. Economic diversification is essential to reduce the state’s exposure to boom and bust cycles, grow the economy and transition the workforce into higher value jobs.

This Plan focuses on building more diversified export-facing supply chains. It considers opportunities to increase local participation, identify new opportunities through value adding to existing processes, strengthen relationships with a broader range of international markets, and expand sources of investment and trade.

The state is a world-leader in minerals and petroleum exports, and a major exporter of agricultural and food products and specialised manufactured goods. Boosting the role of WA businesses in the supply chains of resources and downstream processing industries is an effective way of capitalising on WA’s position as one of the most productive and diversified resources jurisdictions in the world. Capability and technologies developed in the resources and associated downstream processing industries have transferred to other parts of the economy and equipped WA companies to compete for investment in areas of emerging demand, such as automation, robotics, remote operations, cybersecurity and hydrogen production.

WA has a robust regulatory approvals system that can assist investors in meeting global environment, social and governance standards. The WA Government is committed to environmentally responsible production processes, which is reflected through the following environmental regulatory policies and commitments: 

• establishment of a net zero greenhouse gas emissions target for WA by 2050
• development of a WA Climate Policy to position the state for a low-carbon future
• development of a WA Energy Transformation Strategy to ensure the delivery of secure, reliable, sustainable and affordable electricity
• implementation of a comprehensive environmental approvals process.

Ongoing engagement across government and industry has highlighted 6 key enablers:

Investment attraction

Private investment is required to drive the growth of the supply chain activities the WA Government has prioritised.

Skills and workforce

Specialised skill sets are required to grow local capability in targeted opportunities and workforce mobility across supply chains.

Infrastructure access

Access to utilities, production and transport infrastructure is key to unlocking a number of supply chain activities for local small and medium-sized enterprises (SMEs).

Innovation

WA businesses need to innovate to capture new supply chain activities, through improving processes, developing new products, forming start-ups and accessing new markets.

Digital connectivity

Access to adequate data speed is required to progress the digitalisation and automation of a number of supply chain operations.

Science and technology

Building science and technology capability and investment is critical to improving the productivity, competitiveness and adaptability of the state’s supply chain activities.

As part of this Plan, the WA Government will build on the state’s comparative advantages to pursue targeted opportunities to grow WA industry involvement in global supply chains.

These opportunities have been identified in accordance with their: 

• alignment to global trends and demands
• ability to leverage the state’s comparative advantages
• potential economic benefits
• implementation feasibility.

Targeted supply chain opportunities are either cross-sector, meaning they can service several supply chains at once, or industry-specific, meaning they service a single supply chain. These opportunities can drive increased local content by replacing imports, adding value to WA products or developing a new activity for an emerging supply chain. As a package, the opportunities identified in this Plan complement each other and support a coherent value proposition for investing in WA.

Corresponding with these identified opportunities are a number of targeted actions which have been identified by industry and government to deliver the greatest impact for the state’s priority sectors.