Australia is one of the leading countries in the world, and there’s no stopping its booming domestic growth. While there are issues here and there when it comes to the economy, there’s no denying that manufacturing in Australia is as strong as ever:
1. Multiple Manufacturing Industries Received A Big Boost in the Early 2000’s
The textile, clothing and footwear industries, and the passenger motor vehicle industry received major funding from the government. The boost came at more than $1.1 Billion, which were intended to boost the manufacturing industry of Australia. Back then, manufacturing played as big as 48% of exports and 45% for Australian research and development in Australia’s economy.
2. Manufacturing Produces Jobs
Manufacturing in Australia is the sixth largest employer by industry in the country. It has a workforce of over 900,000, providing 8% of employment in the country. It also contributes with 6% to the GDP of Australia in 2015 – 2016.
3. Small Manufacturers Hire the Most
Small business jobs equate to more than medium and large businesses combined, and were the type of business that was employing the most. In fact, almost 90% of employment was done by small businesses even if 43% of active manufacturing businesses were non-employing in the middle of 2016.
4. Manufacturing Exports are Massive
While there has been a slow down in many industries over the years, manufacturing included, its share of exports has been going up since the start of 2014. Currently, mining is the only industry that has more exports than manufacturing does. Manufacturing represented 32.2% of the value of Australia’s exports in 2015.
5. Australia is Pushing for Advancements
Around $440 million of the $2.65 billion supporting national priorities are put into “Advanced Manufacturing Priority” area. Australia is making this huge investments with the goal of conducting high quality research into robotics automation and simulation capabilities, big data and data mining, additive manufacturing, advanced materials and more.
6. Australia Needs to Push for More Manufacturing Research Regardless
In 2011, Australia only spent 0.227% of its GDP for research in the manufacturing industry – less than a quarter of a percent. By comparison, the United States spends 1.29% while Germany is at 1.33% – between 5 to 6 times more than the land down under.
7. Aussies Just Lost the Top 3 Car Producers in the Country
In less than two years, between 2016 until 2017, three mass production automobile companies have pulled from Australia. First, Ford stopped production in 2016, followed by Holden and Toyota in 2017.
8. Australia Ranks 2nd as Problem Solvers in the World
Despite its issues, the OECD Skills Outlook report in 2013 rated Australia as second only to Norway on complex problem solving methods. This is ranked higher than many vanguards in the manufacturing industry like US, UK, India, China and Japan.
9. Investments in the Industry Peaked More Than a Decade Ago
Real investment in manufacturing in Australia was at its peak with $14.4 billion in 2005 – 2006 and in the following years it was around the same numbers. The first big drop in investments occurred between 2011-12 and 2012-13.
In that period, investments reached barely $9.5 billion. This was also the biggest annual drop ever recorded – a $3.7 billion difference. And one year later, the investments in manufacturing dropped as low as $8.8 billion – the lowest in 12 years.
10. Food is Australia’s Largest Manufactured Product
The largest manufacturers in Australia is the food and beverage industry. Some of the sectors with the largest output are meat and meat products, beverage and malt manufacturing, dairy products and sugar and confectionery manufacturing.