Manufacturing Works

In reply to Mr WINGARD (Mitchell) (3 August 2016). (Estimates Committee A)

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy): I am advised:

The Frost & Sullivan report commissioned by the Department of State Development in 2015 evaluated the overall performance of the Manufacturing Works strategy including employment outcomes. It did not measure the employment outcomes of individual programs.

The Frost & Sullivan report found Manufacturing Works had generated significant outcomes for manufacturers including an estimated 290 new jobs created to April 2015, $88 million of additional revenue by participants and $26 million of value-add at an economy-wide level.

Based on its four-year funding period, Frost & Sullivan estimated the total future impact of Manufacturing Works will be 847 new jobs, $229 million of additional revenue and $56 million of value-added in the wider economy.

Frost & Sullivan defined value-add at the company level as 'the net output of a company after adding up all outputs (including opening inventories) and subtracting intermediate inputs (purchases of goods and materials, labour costs, closing inventories, etc)'. At the economy-wide level it was defined as 'Using a multiplier to estimate the broader economic impact of incremental value-added at the firm level'.