Mr Costa said the NSW Government is working with Campbelltown City Council, the Macarthur Business Enterprise Centre, and the Macarthur Regional Organisation of Councils to make the cluster a success.

"Industry clusters encourage a concentration of similarly focused entrepreneurs and innovators who can take advantage of opportunities by working together," Mr Costa said.

"More and more innovative businesses want to collaborate with like-minded entrepreneurs, and the Macarthur Innovation and Manufacturing Cluster will expedite this process," he said.

Mr Costa said the cluster would work to develop a local manufacturing hub in the Macarthur region.

"The cluster will also boost the export potential of its members, and tackle skills shortages and supply chain concerns.

"It is a big step forward for local employment and business growth.

"Cluster members can build on the competitive advantages of Campbelltown, and work to attract more industries to the city.

"I encourage every manufacturing business in the region to join the cluster, and to work together during these turbulent economic times," he said.

The Macarthur Innovation and Manufacturing Cluster is supported by the NSW Department of State and Regional Development's Business Cluster Program.