AFC launches Australia’s first clothing Smart Factory Feasibility study backed by Epson
Announcement posted by Epson Australia 21 Jul 2026
The Australian Fashion Council (AFC) has commissioned a landmark feasibility study to establish a first-of-its-kind Clothing Smart Factory in Australia, a nationally significant step towards rebuilding sovereign capability and creating a new generation of advanced fashion manufacturing. The study is backed by global technology leader Epson, the AFC's strategic print and projection partner supporting the digital textile printing capability and supported by Investment NSW through its Fostering Innovation Sponsorship Program.
A Clothing Smart Factory is a next-generation, technology-enabled manufacturing facility designed to bring onshore garment production back for Australian brands. The purpose-built manufacturing incubator will allow brands to test ideas, conduct R&D, and run small production at a scale and cost that is currently unviable onshore.
- A blueprint for creating a next-generation, technology-enabled clothing manufacturing facility at a viable scale and cost.
- The study is backed by Epson, and two government portfolios; Investment NSW and the NSW Government's Fashion Sector Strategy.
- Three leading universities, RMIT, Swinburne and UTS, are pooling expertise to form the research consortium.
- The AFC's longer-term ambition is a scalable, replicable model for a national network of smart factories over the coming decade.
(l-r) Epson Australia Managing Director Craig Heckenberg, Samantha Delgos, General Manager, Australian Fashion Council, Marianne Perkovic, Executive Chair, Australian Fashion Council and Epson Australia Corporate Marketing Manager, Priscilla Dickason
The study brings together a research consortium of three of Australia's leading universities, Royal Melbourne Institute of Technology (RMIT), Swinburne University of Technology and University of Technology Sydney (UTS) and, combining deep expertise across advanced manufacturing, textile technology and the emerging skills needed to power the fashion industry's digital transformation.
Epson is helping drive the future of onshore garment manufacturing through its Monna Lisa direct-to-fabric digital textile printing technology. Designed for on-demand manufacturing, the technology helps reduce waste, lower water and energy consumption, and shorten supply chains—supporting a more sustainable and responsive fashion industry. Featuring precision print technology and water-based pigment inks, the Monna Lisa series enables brands to produce locally, respond more quickly to changing consumer trends, and improve production efficiency while enhancing creative flexibility making local manufacturing more commercially viable.
The Smart Factory will investigate a Cut, Make and Trim (CMT) facility equipped with digital pattern making, digital textile printing, CNC cutting, automated production line machinery and advanced finishing technologies. The final study will deliver a blueprint to establish a smart factory in NSW, assessing market demand, technical requirements, workforce and skills, financial modelling and opportunities for government and industry co-investment.
Craig Heckenberg, Managing Director of Epson Australia and New Zealand, said: "Epson is once again proud to support the Australian Fashion Council on another important initiative. Digital textile printing is transforming how garments are designed and made, reducing waste and water use while enabling local, on-demand production. We are delighted we can bring our technology and expertise to a project that will reshape the future of Australian fashion manufacturing."
The Hon. Anoulack Chanthivong MP, NSW Minister for Innovation, Science and Technology, said: "The NSW Government is proud to support initiatives that keep fashion and textile manufacturing right here in New South Wales. A clothing smart factory has the potential to create skilled local jobs, strengthen our advanced manufacturing base and broaden our innovation ecosystem. This feasibility study is an important step in building the networks across academia and industry to enhance our manufacturing expertise and competitiveness in this sector."
Sam Delgos, General Manager of the AFC, said: "Australia has extraordinary design talent, but for decades we've watched our clothing manufacturing capability move offshore. If we're serious about building a globally competitive fashion industry, we need the infrastructure to support it. This feasibility study is our blueprint; bringing together industry, government and Australia's leading universities to explore a new model for advanced, on-demand production. We're building the case for long-term investment in sovereign manufacturing, future skills and local production"
Dr Alice Payne, Professor and Dean, School of Fashion & Textiles, RMIT, said:
"RMIT is excited to partner on this nationally significant project, and to help establish a funding model that is sustainable and scalable."
Professor Blair Kuys, Executive Dean, School of Design and Architecture, Swinburne, said: "On-demand and hyper-personalised fashion represent a significant opportunity for Australia's creative and manufacturing economies. Swinburne University of Technology is proud to be working with the Australian Fashion Council and the consortium university partners to contribute our expertise in artificial intelligent manufacturing and build on our recent investment in fashion technologies. This study is an important step towards supporting the future of advanced fashion manufacturing in Australia."
Professor James Bennett, Dean, Faculty of Design & Society, UTS, said: "UTS is committed to supporting our world-leading creative industries grow and innovate through ethical and sustainable practices, which is why we are proud to partner with RMIT and Swinburne Universities on this project. This is a significant milestone of the NSW Fashion Sector Strategy, and UTS will build upon our expertise to complete the Workforce Analysis."
The initiative is directly aligned with the NSW Government's Fashion Sector Strategy, which signals strong appetite for investment in the sector and a priority for the state. The AFC's longer-term ambition is a scalable, replicable model that could underpin a national network of smart factories over the coming decade. Together with the AFC's work across Australian Fashion Week, Global Gateways export development, workforce capability and the National Manufacturing Strategy, the Clothing Smart Factory represents another pillar in rebuilding Australia's fashion ecosystem from design through to manufacturing and global market access.
The study is expected to be completed in late 2026, ahead of an AFC-hosted industry launch event.
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About Epson, Epson Australia and Epson New Zealand
Epson is a technology innovation and engineering company whose philosophy of efficient, compact, and precise innovation enriches lives and helps create a better world. The company uses technology and engineering ability to implement real-world solutions in precision innovation, industrial & robotics, office & home printing, and visual & lifestyle.
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ABOUT THE AUSTRALIAN FASHION COUNCIL
The Australian Fashion Council (AFC) is a not-for-profit and the peak body for the Australian fashion and textile industry, representing the sector for over 70 years. AFC members are Australian founded or majority owned businesses involved in producing fabric, clothing, footwear or accessories, including individuals that contribute creatively and economically to the Australian fashion and textile industry. The AFC champion and advocate for a prosperous and creative Australian fashion and textiles industry, with the purpose of building a vibrant, inclusive ecosystem for our member community through education, collaboration and innovation.