The Australian state government of Queensland developed a set of Skills Formation Strategies as a new way to respond to skill shortages and mismatches. First piloted in 2002, the model was critical of traditional supply-side approaches to meeting industry needs for skilled labour, and stakeholders agreed that increasing skills supply without paying attention to good workforce management practices, skill utilisation and employee engagement would not resolve skill mismatches or shortages. Over 60 strategies have since been established as sector or area-based approaches, and have looked at issues as diverse as job re-design, linking into supply chains, and evaluation methods. This new form of industry engagement has been characterised by strong industry-led involvement, multi-stakeholder coordination, and flexible provision. The strategies’ successful outcomes have dispelled the myth that increasing training supply alone can resolve skills shortages, and as a result Queensland’s training organisations and local government have become better positioned to respond to industry needs.