From Fitzroy Garage to Global Supply Chain: How Local Engineer Built a $40M Business

When Sarah Chen first leased a 200-square-metre garage on Brunswick Street in Fitzroy six years ago, she was one of hundreds of small operators squeezed into Melbourne's inner-north manufacturing corridor. Today, her precision engineering firm supplies specialised components to major electronics manufacturers across Singapore, Taiwan, and South Korea—a trajectory that underscores how local entrepreneurs are reshaping the city's economic identity beyond its well-documented café scene.

Chen's operation, now spanning three sites across Coburg and Footscray with over 80 employees, has grown to an estimated annual revenue of $40 million. The business manufactures high-tolerance metal components for consumer electronics, a sector that employs roughly 15,000 Victorians and generates approximately $2.3 billion in annual output, according to the Victorian Government's latest manufacturing data.

What distinguishes Chen's ascent is her focus on precision over scale—a philosophy increasingly rare in an era of offshoring. Rather than chasing the lowest-cost production model, she invested heavily in advanced CNC machinery and quality certification protocols that now exceed international standards. The gamble paid off when a major Korean supplier adopted her components after a quality audit in 2023.

"The narrative around Melbourne manufacturing is often one of decline, but what we're seeing is specialisation and high-value creation," says Professor Michael Richards from the RMIT Business School, who has studied local manufacturing resilience. "Operations like Chen's show that proximity to ports, skilled labour, and proximity to design and innovation clusters still matter."

Chen's journey reflects broader trends in Melbourne's economic landscape. While the city's tech sector dominates headlines, traditional manufacturing—particularly precision engineering and advanced materials—continues to generate significant employment and export revenue. Recent data from the Victorian Chamber of Commerce indicates that small to medium-sized manufacturers experienced 18 per cent average growth between 2023 and 2025, bucking national decline trends.

Her advice to aspiring entrepreneurs touches on familiar themes: identify an underserved niche, invest in capability rather than just equipment, and build relationships rather than chasing every opportunity. Chen now mentors younger engineers through the Moreland Manufacturing Hub, a council-supported collaborative workspace on Sydney Road.

As geopolitical supply chain tensions continue reshaping global manufacturing, businesses like Chen's prove that Melbourne remains a credible hub for precision production—a counterpoint to the assumption that all advanced manufacturing has vanished offshore.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.