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This report documents the audit that examined how well Victoria's publicly-funded vocational education and training (VET) is meeting the skill needs of the state's manufacturing industry. Three sectors in the manufacturing industry (vehicle manufacture, engineering and pharmaceutical manufacture) were selected as a focus for the audit. The audit examined two specific questions. The first was to what extent Victoria's purchase of publicly-funded VET meets the skill needs of the manufacturing industry. This was investigated through an assessment of whether the Victorian Learning and Employment Skills Commission's (VLESC's) purchase of industry training is based on robust advice, how well the Office of Training and Tertiary Education (OTTE) purchases industry training on behalf of VLESC, and if the outcomes from publicly-funded VET are measured and reported. The second question was whether Victorian TAFE institutions have sufficient capacity and capability to provide for the skill needs of the manufacturing industry. This was achieved through an assessment of whether TAFE institutions were sufficiently knowledgeable of the business environment in which manufacturing enterprises operate, how well TAFE institutions identify current and emerging skill needs and translate these into training programs, and whether TAFE institutions had sufficiently skilled and adaptable staff and the necessary infrastructure to meet the skills needs of enterprises. Based on its findings, the report makes several recommendations in relation to these two questions. The contents are: Executive summary; Manufacturing in Victoria; Vocational education and training in Victoria; Does Victoria's purchase of publicly-funded vocational education and training meet the skill needs of the manufacturing industry?; Do Victorian TAFE institutions have sufficient capacity and capability to provide for the skills needs of the manufacturing industry?; Appendix A: About this audit.