Australian manufacturers across six priority areas will receive more help to expand in high-value areas through an almost $1.5 billion budget boost.
But Labor argues the coalition has neglected the sector for the best part of a decade.
Prime Minister Scott Morrison outlined the coalition's manufacturing strategy at the National Press Club in Canberra on Thursday.
"We make things in Australia. We do it well. We need to keep making things in Australia," he said.
Australian Prime Minister Scott Morrison makes a pre-budget address to the National Press Club. Source: AAP
The strategy targets mining, food and drink, medical products, recycling and clean energy, defence and space.
Industry-led teams of experts will design road maps for each area by April next year, with goals for the next two, five and 10 years.
The government will make $1.3 billion available in Tuesday's federal budget to partner with private investors across three manufacturing streams.
One will dish out grants for large projects supporting collaboration between businesses and researchers.
A separate stream will spend money on turning manufacturers' ideas into products and other innovation.
The third will help manufacturers integrate into local and international supply chains and markets.
The money will be spent over four years after the road maps are complete.
Mr Morrison outlined the need for manufacturing to be supported with energy, industrial relations, tax, skills and deregulation policies.
"Too often in the past, industry policy has ignored these foundational elements in the vain hope subsidies and work-arounds could make up for broader deficiencies in our economic settings," he will say.
Labor frontbencher Jason Clare said the overall spend would be less than the coalition's cuts to research and development.
"Does a leopard really change its spots? They pushed the car industry out of the country, they've neglected manufacturing for almost a decade," he told Sky News.
"Now the prime minister is going to rehash a whole bunch of old announcements and try and convince Australians that he really cares about manufacturing."
Industry Minister Karen Andrews said the government was picking a strategic direction rather than picking winners.
She dismissed claims the government had failed to act on manufacturing over the past seven years.
"It's very old school thinking. We actually have been very focused on manufacturing," Ms Andrews told ABC radio.
A further $107.2 million will identify supply chain vulnerabilities of critical goods and services with medicines and medical equipment the initial focus.
Food, chemical and plastics will follow, while cash will be made available for businesses to address issues in supply chains.
A manufacturing modernisation program will be extended by a further $52.8 million, with industry expected to spend $3 for every dollar the government invests.
The scheme will fast-track technology upgrades and allow up to 150 local businesses to invest in ready-to-start projects.
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