Iran Conflict Disrupts Australian Supply Chains for Chemicals and Textiles

The Iran conflict has reduced availability of manufacturing chemicals, plastic for food packaging, and yarn used in clothing production in Australia. Geelong textile manufacturer LoomTex has received new inquiries for its products since the conflict began.

Chief executive Samantha Van Zyl said the increased demand has created opportunities for local production but added complexity to sourcing raw materials. Before the conflict, LoomTex developed a fibre for emergency service workers. Van Zyl stated that supply for existing contracts remains secure, yet pricing for new materials has become more volatile.

Council general manager Sam Delgos said sovereign capability involves the ability to supply essential goods when global supply chains fail. U.S. tariff policies, and the current conflict. Australian Industry Group head of industry development and policy Louise McGrath said Australia requires manufacturing capacity across low-, mid-, and high-intensity categories to achieve self-sufficiency.

McGrath stated that items such as nuts and bolts, motor vehicle assembly, and complex medical devices each play a role.

The federal government's Future Made in Australia strategy, announced in 2024, supports industries transitioning to net zero but does not cover plastics or fabrics. The Australian Fashion Council developed its own 10-year national manufacturing strategy to address supply chain vulnerabilities.

This year the federal government allocated $20 million to the "Made Right Here" campaign. Industry Minister Tim Ayres said the spending supports opportunities for Australian manufacturers and jobs. LoomTex chief executive Samantha Van Zyl said events like the current conflict often prompt renewed focus on domestic production.