AFC x Epson To Develop AI-Powered Smart Factory

Australian Fashion Council and Epson Australia to develop smart factory blueprint powered by AI and digital technologies
Craig Heckenberg, Managing Director of Epson Australia

The Australian Fashion Council (AFC) and Epson Australia have launched an initiative to evaluate the potential for an AI and digitally powered smart factory to advance Australia's clothing manufacturing capabilities.

The organisations have sought a qualified research partner to conduct a six-month feasibility study that will create a detailed blueprint for a pilot facility that will revolutionise local production by combining digital design and print, automation, and AI technologies.

The announcement came just one week after the AFC unveiled its commitment to developing Australia's first-ever National Manufacturing Strategy for the fashion and textile industry. This smart factory feasibility study will evaluate how cutting-edge technology can form a key pillar in rebuilding sovereign manufacturing capabilities.

A clothing smart factory is an automated production facility that enables on-demand, customisable garment manufacturing with minimal waste and fast turnaround times.

By combining digital design, print, and advanced manufacturing technologies with AI-powered systems and analytics, smart factories enable quick, flexible production runs that respond rapidly to market trends without the high minimum order quantities that can result in overproduction.

"This smart factory initiative addresses multiple challenges facing Australian fashion manufacturing, from supply chain disruptions to skills shortages,” said Jaana Quaintance-James, CEO of the Australian Fashion Council.

‘“Our sector is at a critical tipping point. The feasibility study will validate whether a smart factory pilot program can be commercially viable while delivering broader benefits as part of an integrated advanced manufacturing ecosystem."

Research commissioned by the AFC has estimated that for every AUD one million invested in returning production to Australia, approximately AUD 1.2 million in economic returns could be generated through job creation, technology adoption, strengthened local supply chains, and reduced import dependencies.

"Epson is committed to supporting innovation in Australian manufacturing as we believe Epson’s digital textile printing technology can help build a more sustainable world and improve lives. Our partnership with the AFC and this blueprint and initiative will help local brands, big and small, have access to smart manufacturing capabilities that match their scale and ambition,” said Craig Heckenberg, Managing Director of Epson Australia.

“For smaller brands, it means producing high-quality garments locally, on demand. It offers a blueprint for larger companies to implement smart factory practices within their operations. As a result, we see a future where Australian-made sustainable fashion will set the global standard, leading not just in design, but also in ethical, high-tech manufacturing.”

The AFC and Epson Australia seek research partners with experience in technology and innovation, fashion and textile industry expertise, stakeholder engagement, comprehensive research and analysis skills, and financial analysis capabilities.

Research partners may be Australian-based or international organisations with the capacity to conduct a thorough feasibility study that delivers actionable recommendations.

Interested parties should submit their expressions of interest by Sunday, the 15th of June 2025.