Use of locally made steel should be mandated on state and federal infrastructure projects across Australia, the nation’s welding industry says.

As the United States has imposed 25 percent tariffs on steel and aluminium imports including from Australia, Weld Australia has called for local content procurement policies to be made mandatory on state and federally funded building and infrastructure projects.

Specially, the organisation is calling for enforceable local content policies that would:

• require a minimum percentage of Australian steel, fabricated by Australian workers
• guarantee compliance with Australian Standards to maintain safety and quality; and
• support long-term investment in local manufacturing and sovereign capability.

The calls came as Australia failed to secure an exemption to the 25 percent tariffs being imposed by the United States.

The call also comes amid concern about the long-term viability of Australian manufacturing in some areas.

Last month, the Commonwealth and South Australian Government were forced to provide a support package to secure the future of the Whyalla steel plant – Australia’s only manufacturer of long-steel products – after the company which operated the plant was placed into administration.

Late last year, Australia’s only wind turbine manufacturer, Keppel Prince, announced its intention to mothball what remains of its wind turbine manufacturing business in Australia after fighting a losing battle with cheap imports from China.

In response to the tariffs, Prime Minister Anthony Albanese has encouraged Australian households to buy Australian rather than American goods.

According to media reports, the Government is also considering how it may support more local businesses to win federal procurement contracts.

In a statement, Weld Australia CEO Geoff Crittenden encouraged the government to act or risk losing the ability to manufacture critical infrastructure.

He adds that the United States, Canada, and European nations have long-standing procurement policies that prioritise domestic industries.

“It’s not enough for the Prime Minister to encourage everyday Australians to buy local while the federal, state and territory governments themselves fails to do so,” Crittenden said.

“If the government truly wants to back Australia’s steel and manufacturing industries, it must implement and enforce strict local content procurement requirements across all federally funded projects.”

“The Australian Government has an immense opportunity—and responsibility—to harness its $100 billion annual procurement spend to support local manufacturers, fabricators, and welders. Yet, we continue to see key federal and state government infrastructure projects relying on imported steel and offshore fabrication, costing Australian jobs and undermining our sovereign capability,

“Australian industry has the skills, the technology, and the workforce to deliver world-class infrastructure projects. But instead, we see government-funded projects using imported fabricated steel that often fails to meet Australian Standards, putting public safety at risk and eroding the long-term viability of our manufacturing sector.”

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