He developed expertise in wool classing and was an assistant wool-valuer by the age of 18, eventually becoming manager of the wool-scouring works.
His Colonial Combing, Spinning and Weaving Company was formed in partnership with E. A. Coghlan and benefited from the federal government's introduction of a bounty for the production of wool top.
This allowed for an expansion into the wool export market and by 1914 the company had an output of 3,000,000 pounds (1,400,000 kg), which doubled during World War I. Hughes' processing facilities at Botany had 1,000 employees and covered almost 13 acres (5.3 ha).
[1] Hughes employed former prime minister Chris Watson as a lobbyist and maintained good relations with the Australian Textile Workers' Union.
After World War I he visited Japan and secured a substantial contract for wool tops, also exporting to Canada, China, Mexico, Greece and England.