Factory closure reveals deeper cracks in manufacturing future

The closure of another Australian factory might barely register in the news cycle these days, but the collapse of Price Plastics tells a story that should concern every Australian—especially those who remember when this country actually made things.

After more than two decades manufacturing plastics and moulded products, Price Plastics has joined a sobering statistic: around 1400 manufacturers have collapsed since 2022-23.

The West Gosford and Caboolture-based company owes close to $4 million to suppliers and $641,000 to its 24 former workers, but its demise represents something far more significant than another business failure.

The brutal reality facing Australian manufacturers

The last twelve months have been a very difficult time to be in Australian manufacturing. The industry entered recession around the middle of 2024, and contracted 2.6 per cent over the last year.

While weak economic conditions in Australia have proven difficult for most industries, manufacturing has declined faster and further than any of its peers.

Price Plastics' administrators from KPMG cited a familiar litany of pressures: rising costs, overseas competition, supply chain disruptions, and the departure of key customers to cheaper rivals.

Revenue plummeted from $41.9 million in 2023 to just $25.8 million this year. The final blow came from a Malaysian competitor offering cheaper alternatives, capturing market share throughout 2025.

But Price Plastics wasn't alone in facing these challenges. Oceania Glass, Australia's only architectural glass firm, closed down in March 2025 after 169 years of operation.

The company that had survived two world wars, the Great Depression, and countless economic upheavals finally succumbed to the same pressures facing Price Plastics.

The energy crisis killing Australian manufacturing

At the heart of Australia's manufacturing crisis lies a policy failure that hits every Australian in the pocket: soaring energy costs.

East Coast gas prices have tripled since liquified natural gas (LNG) exports commenced out of Gladstone eleven years ago, which has driven corresponding rises in electricity prices.

For energy-intensive manufacturers like plastics companies, these costs have become unsustainable. Oceania Glass required a significant amount of energy, particularly gas, to power its 2000-tonne furnace at the heart of its Victorian operations.

As East Coast gas and energy prices skyrocketed, the company's profitability plummeted alongside its viability.

The irony is stark: Australia has ample energy resources, yet its power costs remain among the highest in the world. We're literally exporting our competitive advantage while our own manufacturers struggle to survive.

The Asian competitive tide

While Australian manufacturers grapple with crushing energy costs, their Asian competitors enjoy significant structural advantages.

The Malaysia Plastics Market size is expected to reach USD 4.04 billion in 2025 and grow at a CAGR of 3.91 per cent to reach USD 4.90 billion by 2030.

Major markets for Malaysian plastic exports are the United States, European Union, Singapore, Australia and Japan.

Malaysian manufacturers are actively targeting the Australian market, offering products at prices that local companies simply cannot match given their cost structures.

For Price Plastics, the Malaysian competition proved decisive. After struggling with higher material costs and supply chain disruptions, the company found itself unable to compete when the Malaysian rival undercut their prices throughout 2025.

What this means for Australian communities

The human cost of manufacturing decline extends far beyond the factory floor. Manufacturing employs 930,000 people across Australia, supporting hundreds of thousands of families and entire regional communities built around industrial activity.

When Price Plastics closed, 24 workers lost their jobs. While administrators expect employee entitlements to be paid by December, these workers join thousands of others who've seen their livelihoods disappear as Australia's manufacturing base erodes.

The ripple effects reach into every household. Domestically made building material costs will also rise, making it more expensive to build homes and harder to meet housing supply targets.

As Australian manufacturers close, we become increasingly dependent on imports for everything from building materials to essential goods.

A rescue still possible?

Despite the bleak outlook, there's still hope for some Australian manufacturers. KPMG has received a rescue proposal for Price Plastics and is reviewing whether it could deliver returns to creditors.

The administrators have delayed the second creditors' meeting by up to 45 business days while considering the proposal.

But individual rescues won't solve the systemic problems destroying Australian manufacturing.

The Albanese government must emulate the Coalition's gas reservation policy. Otherwise, Australia faces soaring energy costs, higher inflation, and further deindustrialisation.

The path forward

For Australians who remember when this country manufactured cars, appliances, and countless other products domestically, the current situation represents a profound loss of economic sovereignty.

We've gone from being a nation that made things to one increasingly dependent on imports for basic necessities.

A nation so utterly dependent on others for manufactured goods is not a serious country.

The question facing Australia is whether we're prepared to take the policy steps necessary to reverse decades of manufacturing decline, or whether we'll continue to watch our industrial base disappear one factory closure at a time.

The Price Plastics workers deserve better than becoming another statistic in Australia's manufacturing decline.

More importantly, the country deserves an energy and industrial policy that gives our manufacturers a fighting chance against international competition.

What are your thoughts on Australia's manufacturing decline? Have you or your family been affected by factory closures in your area? Share your experiences and opinions in the comments below.