The Australian Fashion Council (AFC) and Epson Australia have launched an initiative to evaluate the potential for an AI-powered smart factory to advance Australia's clothing manufacturing capabilities. The announcement comes just one week after the AFC unveiled its commitment to developing Australia's first-ever National Manufacturing Strategy for the fashion and textile industry.
Aligned with the Industry Policy’s Local Manufacturing mission, the initiative strengthens sovereign capability, supports Net Zero goals, and contributes to economic growth. It will also act as a national hub for skills development, innovation, and supply chain connectivity, linking brands with manufacturers and fostering a digitally enabled, resilient local industry.
In partnership with Epson Australia, we will undertake a six-month feasibility study to explore the commercial and technical pathways to bring this vision to life.
Call for Research Partners
The AFC and Epson Australia are seeking research partners with experience in technology and innovation, fashion and textile industry expertise, stakeholder engagement, comprehensive research and analysis skills, and financial analysis capabilities.
Research partners may be Australian-based or international organisations with the capacity to conduct a thorough feasibility study that delivers actionable recommendations. Read the Scope of Work here.
Interested parties should submit their expressions of interest by Sunday, 15th June, 2025.
A smart factory drives the adoption of advanced, on-demand garment manufacturing using AI, digital design, and sustainable technologies. It integrates brands with manufacturers, fosters local supply chains, and addresses critical skills gaps through specialised training.
By bringing together digital design and print with advanced manufacturing technologies, smart factories enable quick, flexible production runs that respond rapidly to market trends without high minimum order quantities, while also improving supply chain visibility. Read the Briefing Document Here
Australia’s clothing and textile industry is fragmented and under pressure, with outdated machinery, skills shortages, and limited local supply chain integration. A smart factory offers a solution combining AI-driven, on-demand manufacturing with digital supply chain networks to reduce waste, rebuild local capability, and create future-focused career pathways.
Research commissioned by the AFC has estimated that for every $1 million invested in returning production to Australia, approximately $1.2 million in economic returns could be generated through job creation, technology adoption, strengthened local supply chains, and reduced import dependencies.
Establish a commercially viable smart factory that integrates advanced manufacturing machinery, digital technologies & software to support brands in transitioning to a 'rapid agile' on-demand production model before scaling with established local manufacturers.
We have partnered with Epson Australia to commence a comprehensive six-month feasibility study examining market viability, technical requirements, machinery options, operational and funding models, and environmental and social impact assessments.
The study will create a detailed blueprint for a pilot facility combining digital design, automation, and AI technologies to revolutionise local production.
What is a Smart Factory?
A clothing smart factory is an automated production facility that enables on-demand, customisable garment manufacturing with minimal waste and fast turnaround times. It combines digital design, advanced manufacturing technologies, AI-powered systems and analytics to create a more agile, responsive production capability.
When will the Smart Factory be implemented?
Following completion of the feasibility study toward the end of 2025, we'll develop a detailed implementation plan. If validated as commercially viable, we'll move forward with securing investment partnerships, finalising specifications for an initial pilot, developing training programs with educational institutions, and creating a governance framework.
Where will the feasibility study take place?
The feasibility study will involve industry consultation across Australia, with a focus on identifying optimal locations for a potential smart factory pilot. Location analysis with recommended sites will be one of the key deliverables of the study.
How can I be involved in the feasibility study?
If you have expertise in technology and innovation, fashion and textile industry experience, stakeholder engagement capabilities, or comprehensive research and analysis skills, you can submit an Expression of Interest to be considered as a research partner. Stakeholders from across the industry will also have opportunities to participate in consultation sessions throughout the study.
Join us in shaping the future of advanced Australian fashion manufacturing.
"Epson is committed to supporting sustainable innovation in Australian manufacturing. Our partnership with the AFC aims to bring advanced manufacturing capabilities to Australia through Epson's digital textile printing technologies in a way that's ethical, sustainable, and supports our local economy while providing valuable opportunities for industry-education collaboration."
Craig Heckenberg, CEO of Epson Australia
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