Australia’s Scary New Record as Regional Cities Pivot from Manufacturing
Once a proud symbol of Australian industry, Burnie in Tasmania has undergone a dramatic transformation. The city that once thrived on the smoke and hum of paper mills and paint factories is now a case study in how regional Australia is reinventing itself in the face of economic change.
From Industrial Powerhouse to Reinvention
Once home to major employers like the Burnie paper mill and Tioxide paint factory, the city faced economic collapse when these factories shut down in the 1990s and early 2000s. Thousands lost jobs, leading to years of welfare dependence and population decline.
Today, the city is finding its footing again — not through manufacturing, but through renewable energy, tourism, and small business innovation.
Local entrepreneur Andrew Turner, owner of Chapel Cafe and Communion Brewing Co, is one of the success stories. After moving to Burnie in the early 2000s, Turner saw opportunity where others saw loss.
“When I moved up here, there weren’t really any good coffee roasters, so I started roasting coffee – just myself in the shed,” he said.
His ventures now employ 45 people, contributing to a new wave of economic optimism in the region.
The Promise of Renewable Energy
The $3.9 billion Marinus Link project, an undersea cable that will export Tasmania’s renewable energy to mainland Australia, is expected to generate up to 3,300 jobs during construction.
Burnie Mayor Teeny Brumby described it as a “once-in-a-century opportunity.”
“Burnie has long been a manufacturing and industrial centre,” she said. “The pivot now is diversification and resilience. Renewable energy and urban renewal projects mean our youth can find opportunities at home rather than leaving.”
Manufacturing’s National Decline
Across Australia, the story is similar. Once a nation that built cars, TVs, and even planes, Australia’s manufacturing share of GDP has hit a record low of 5.1%, down from 15% in the 1970s — the lowest among OECD nations.
Rising energy costs, tariff cuts, and global competition have made it difficult for local factories to survive. Yet some regional producers like Saxbys Soft Drinks in Taree, NSW, are proving that resilience and community loyalty still matter.
Saxbys: A Surviving Aussie Icon
Founded in 1864, Saxbys has weathered global wars, shifting bottling systems, and the dominance of multinationals like Coca-Cola and Schweppes.
Managing director Ian Turner says persistence is key.
“You believe in your products, and when you need to compete, you compete. It’s been a tough slog ever since, but we’re still here,” he said.
Turner believes that Australians are becoming more conscious of buying local.
“I like to think Australians would like to know where the profits go – whether it’s Australia or overseas.”
Looking Ahead
As Australia’s manufacturing base shrinks, regional towns like Burnie are proving that innovation, local pride, and diversification can lead the way forward. From coffee roasting to renewable energy, the spirit of making things — and making things work — is alive and well in regional Australia.
