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For decades, (see AFW 2026 for proof!) the story of Australian fashion has followed the same script. Brilliant local design talent, paired with manufacturing that quietly moved offshore. Now, the Australian Fashion Council (AFC) is trying to rewrite that ending. And it’s starting with a feasibility study that could reshape how we make our clothes.
The AFC has commissioned a landmark study to explore Australia’s first-ever Clothing Smart Factory, a nationally significant push to rebuild local manufacturing capability. Global tech leader Epson – the AFC’s strategic print and projection partner – backs the project. And, Investment NSW provides additional support through its Fostering Innovation Sponsorship Program.
So, What Exactly Is a “Smart Factory”?
Think of it as a manufacturing incubator built for the modern fashion industry. A Clothing Smart Factory is a next-generation, technology-enabled facility designed to bring garment production back onshore for Australian brands. Therefore, letting them test ideas, run R&D, and produce small batches at a scale and cost that’s currently just not viable here.
The study will investigate a full Cut, Make and Trim (CMT) facility, kitted out with digital pattern making, digital textile printing, CNC cutting, automated production lines, and advanced finishing technology. By the end of it, the AFC will have a genuine blueprint. One covering everything from market demand and technical requirements to workforce needs, financial modelling, and where government and industry might co-invest.
The Brains (and Ink) Behind It
Three of Australia’s leading universities – RMIT, Swinburne, and UTS – have joined forces to form the research consortium behind the study. And, pooled their expertise across advanced manufacturing, textile technology, and the skills the industry will need for its digital future.
Epson, meanwhile, is bringing the hardware. Its Monna Lisa direct-to-fabric digital textile printing technology uses precision print technology and water-based pigment inks to power on-demand manufacturing. This helps brands produce locally, respond faster to trends, and cut down on waste, water use, and energy consumption.
Why It Matters
“Australia has extraordinary design talent. But for decades we’ve watched our clothing manufacturing capability move offshore,” said Sam Delgos, General Manager of the AFC. She described the study as a blueprint for building the case for long-term investment in sovereign manufacturing, future skills, and local production.
Craig Heckenberg, Managing Director of Epson Australia and New Zealand, echoed the sentiment. “Digital textile printing is transforming how garments are designed and made, reducing waste and water use while enabling local, on-demand production.” He added that Epson was proud to bring its technology to a project set to reshape the future of Australian fashion manufacturing.
And the NSW Government is putting money where its mouth is. The Hon. Anoulack Chanthivong MP, NSW Minister for Innovation, Science and Technology, noted that a clothing smart factory has the potential to create skilled local jobs and strengthen the state’s advanced manufacturing base.
The Bigger Picture
This isn’t a one-off experiment. The AFC’s ambition stretches well beyond a single facility. The long-term goal is a scalable, replicable model that could underpin a national network of smart factories over the next decade. Paired with the AFC’s existing work across Australian Fashion Week, export development, and workforce capability, the Clothing Smart Factory is shaping up to be another pillar in rebuilding Australia’s fashion ecosystem from the ground up. From design through to manufacturing and global market access.
The study is expected to wrap up in late 2026, ahead of an AFC-hosted industry launch event. If it delivers, it could mark the beginning of a genuine shift back toward “Made in Australia” fashion. Powered not by nostalgia, but by some seriously smart tech.




