HVIA has ramped up advocacy for the inclusion of the heavy vehicle manufacturing and supply chain in the Federal Government’s Economic Resilience Program (ERP), warning that current eligibility settings are overlooking a critical part of Australia’s freight system.
The ERP was established to provide zero-interest loans to businesses affected by the Middle East fuel disruptions, particularly across key manufacturing and logistics sectors.
However, despite clear alignment with the program’s intent, major segments of the heavy vehicle supply chain remain excluded under current ANZSIC classifications.
HVIA CEO Todd Hacking says the exclusion is difficult to reconcile given the industry’s central role in keeping Australia moving.
“A resilient freight network depends on a resilient heavy vehicle supply chain. Without the businesses that build, maintain and support the truck fleet, the entire system is at risk,” he says.
HVIA met several key senior Federal Departmental representatives on this issue on June 4. It will also keep raising its concerns directly with Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
The heavy vehicle sector spans manufacturers, component suppliers, wholesalers and maintenance providers, all of which directly influence the safety, efficiency and availability of the national fleet.
These businesses support the movement of essential goods across the economy and were recognised as critical services during previous disruptions, including COVID19.
HVIA has raised concerns that, under current settings, some manufacturing activities with only a limited connection to freight supply chains are eligible for support, while businesses producing and maintaining heavy vehicles are excluded.
The association argues this is inconsistent with the stated purpose of the ERP, which is to protect domestic manufacturing capability and supply chain resilience.
At the same time, the heavy vehicle supply chain is experiencing a sharp downturn linked to global uncertainty and fuel price volatility.
Hacking says the Middle East fuel impacts are being felt right across the sector, not just by transport operators.
“What we’re seeing is a flow-on effect from the current uncertainty. When operators hold back investment, it hits manufacturers, suppliers and service providers immediately,” he says.
“Some businesses that would normally rely on a steady stream of orders are now facing extended gaps in activity. That creates real pressure on cash flow, employment and long-term capability.”
HVIA warns that continued exclusion from the ERP could have broader consequences for the freight task, including reduced capacity to maintain vehicles, delays in safety and emissions upgrades, and increasing operational risks across the network.
It also raises concerns about the longer-term erosion of Australia’s sovereign manufacturing capability in a strategically important sector.
The association notes the ERP already includes mechanisms to assess business-level impact, meaning inclusion of heavy vehicle ANZSIC codes would not guarantee funding but would allow genuinely affected businesses to be considered.
Importantly, with a substantial proportion of program funding yet to be allocated, HVIA believes there is clear scope to address the current gap.
“This is not about changing the intent of the program — it’s about delivering on it,” Hacking says.
“Our industry underpins every major supply chain in the country. Ensuring these businesses can at least access the program is a practical step to protect capability, support jobs and keep freight moving during a challenging period.”
HVIA is continuing to engage with government and remains hopeful that eligibility settings can be clarified to better reflect the role of the heavy vehicle supply chain in Australia’s economic resilience.